From time to time, prospects are unsure what to ask about Workers’ Compensation Insurance. Barton Staffing Solutions educates prospects on staffing NCCI Codes to help them make an informed decision when choosing a staffing agency.
Most prospects know that choosing a staffing agency requires risk analysis – not just price comparison.
However, when it comes to workers’ compensation risk and liability, too many don’t know what questions to ask and what to look for in the answers. Let’s consider three questions and what to look for.
Does The Staffing Firm Have Workers’ Compensation Insurance?
The first is to know for certain that your staffing company has Workers’ Compensation insurance. It’s a requirement, but you need to be sure. Ask for a Certificate of Insurance. Your staffing agency should be able to produce one. It is generated by their insurance agency. You must carefully review it, check it’s coverage amounts and effective dates. Ensure it has liability coverage for the occupations your staffing firm will be performing.
Barton Staffing Solutions provides a Certificate of Insurance to its clients at signing, and each year at coverage renewal. Your staffing firm should do so too, without being asked.
What Is the NCCI Code for the Work?
The second is to understand staffing NCCI Codes. The National Council on Compensation Insurance (NCCI) developed class codes to describe occupational liability risk based on the nature of the work performed. For example, Class Code 8810 is for Clerical Office Employees (low risk) and Class Code 3365 is for “Welding and Cutting” (higher risk).
You can learn more directly from NCCI, or by downloading their publication, “The ABCs of Experience Rating.”
Most staffing firms know what staffing NCCI Codes and work classifications their employees can perform under their insurance coverage. They should tell you if your job order is (or is not) covered by their insurance. Barton Staffing Solutions’ focus on safety ensures we don’t put people and our clients at risk in this manner.
There are cases you should recognize and avoid. Be wary of a staffing firm that wants your business, but their insurance prohibits putting workers in your work’s staffing NCCI Codes. If they staff your job order anyway it puts your company at risk. Don’t let supervisors reallocate a temporary worker to a jobs classified with uninsured staffing NCCI codes. Train supervisors on NCCI Class Codes your staffing firm can perform to prevent this.
What is the Staffing Firm’s Experience Mod Score?
Ask what the staffing firm’s Experience Mod Score is? Of all the things to ask, this one is the most revealing as you assess potential staffing agencies to hire and assign temporary workers to perform work in support of your labor requirements. An Experience Mod is issued from NCCI and reflects many factors driving the cost of Workers’ Compensation insurance cost.
Barton Staffing Solutions’ Experience Mod Score is less than 1.0! Ask us about it.
An Experience Mod score is a number used as a multiplier on the “average risk” to produce the company’s workers’ compensation insurance premium. An experience Mod of 1.0 means the company’s risk is average. An Experience Mod of less than 1.0 indicates losses are expected to be less than average. An Experience Mod of greater than 1.0 indicates losses are expected to be greater than average.
Calculating a staffing firm’s Experience Mod can seem complex. Every firm, including staffing firms, covered by workers compensation insurance is issued an Experience Mod score. A low Experience Mod score less than 1.0 is ultimately the sustained convergence of strong safety programs, careful recruiting of qualified and safety-minded employees, and rigorous adherence to safety and risk management programs, plans and initiatives to reduce risk and prevent accidents.
What Does This Mean To Our Clients?
- Clients can trust that Barton Staffing Solutions’ focus on safety is aligned with their own safety objectives.
- Barton Staffing Solutions is ahead of new OSHA changes to rules affecting both staffing firms and clients.
- Preventing accidents that affect a Client’s OSHA Log is equally important to Barton Staffing Solutions.
- If there was one single numeric factor (not price) when choosing a staffing firm, it is the Experience Mod.
Our clients know that Experience Mod beats buying on price – every time.
Saving a few pennies on mark-up to take on 2x, 3x or greater risk for workers’ compensation liability is never a good choice. It happens all the time when the questions above are not asked and the answers are not critically assessed.
If you’d like to learn more, please call Barton Staffing Solutions today. Our Managing Director of Safety or any member of our leadership team is available to help.