Workers Comp for Texas Staffing Companies

Workers Comp for Texas Staffing Companies

Staffing Companies, like most businesses, have employees that should be covered under Workers Comp. There are several things to keep in mind when purchasing Workers Comp for a Texas Staffing Company. In this blog we will explain what you need to know when purchasing Workers Comp for your Texas Staffing Company.

Workers Comp for Texas Staffing Companies – Do I Need It?

Workers Comp in Texas is non-compulsory, meaning it is optional for employers to purchase this coverage. However, this does not mean employers are not liable for their employees in cases of injury or disease at the workplace. Regardless of state requirements, Staffing Companies should be carrying Workers Comp for their employees. In addition to protecting your business and employees, carrying Workers Comp may bring in more income for your Staffing Company. This is because many companies require Workers Comp as a contractual requirement. This coverage could end up getting you a contract that you otherwise would lose out on.

Workers Comp for Texas Staffing Companies – Staffing Types

There are several different types of Staffing Companies, all with different operations. When purchasing Workers Comp, it is absolutely critical to fully explain the types of staffing contracts that are in place. This clarification will affect eligibility with preferred carriers, which in turn makes it especially important. For example, if you have two different staffing companies that both offer the same type of services, let’s say computer programming. One Staffing Company may offer permanent staffing while the other offers temporary staffing. The Staffing Company with the permanent staffing will like be eligible for Workers Comp with preferred carriers that would decline the Staffing Company with temporary staffing.

Workers Comp for Texas Staffing Companies – Employee Classifications

In most cases, employees with Staffing Companies are classified depending on the type of work that is performed. A computer programmer would be classified as a computer programmer just as an electrical contractor will be classified as an electrical contractor. When purchasing Workers Comp, it is absolutely critical to classify your employees correctly for several reasons. For one, the difference rates between different types of employees can be substantial. In addition, if your employees are misclassified, you may be hit with a large surcharge at the end of the year when the monthly audit is performed.

If you would like to learn more about Workers Comp for your Texas Staffing Company, we would love to help. Give us a call at 925-297-4829.

All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.

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