There is a Disturbance in The Force...

There is a disturbance in the force, the insurance Salesforce that is.  No really, the insurance market place is seeing some negative developments.  Staffing firms that outsource to PEOs for their back office and Work Comp insurance will find it more difficult to purchase traditional insurance.  Insurance companies are having a hard time getting PEOs to cooperate in cumulative trauma cases.  The loss data at times is questionable and not always reported to rating bureaus.  With insurance carriers picking and choosing their target markets more carefully, this has become a new hurdle.

Also, a very large insurance player in the staffing field is about to exit California and other markets and start canceling policies effective April 1st (this is not an April Fools).  2014 is a year that Staffing Firms need to market beyond their current broker and seek out options that are both rare and relationship driven.

I recently placed coverage for a staffing firm with a carrier that had previously declined the risk.  The prior broker had described their operations in a careless manner which scared the underwriters away.  After providing documentation, the burnt bridges were rebuilt and the client greatly improved their insurance structure.

Let's talk.