Staffing Insurance Cost: What Affects Your Premium?
- 2 hours ago
- 2 min read
Understanding staffing insurance costs is essential if you want to protect your agency while keeping overhead under control. Whether you specialize in clerical placements or high-risk industrial staffing, your insurance premiums can vary significantly. Knowing what affects pricing — and how to get better rates — helps you budget smarter and grow confidently.
On average, a staffing agency can expect to pay between $3,000 and $15,000 per year for core insurance coverage. Higher-risk agencies placing construction, manufacturing, or healthcare workers may see premiums exceed $20,000 annually.
Staffing Insurance Coverage Types That Impact Cost
Several policies influence your overall staffing insurance premium:
General Liability Insurance: Typically $500–$2,000 annually for low-risk staffing firms.
Workers’ Compensation Insurance: Often the largest expense. Rates depend on payroll and job classifications. Light clerical staffing may cost $0.30–$1.00 per $100 of payroll, while industrial staffing may exceed $5.00 per $100.
Professional Liability (Errors & Omissions): Usually $800–$3,000 per year.
Employment Practices Liability Insurance (EPLI): Costs range from $1,000–$5,000 annually.
For official state requirements on workers’ compensation, visit state’s Department of Labor website.
Staffing Risk Factors That Affect Your Insurance Premium
Insurance carriers calculate staffing insurance premiums based on risk exposure. The main factors include:
Type of placements: Industrial and healthcare staffing cost more than clerical staffing.
Annual payroll: Higher payroll equals higher workers’ compensation premiums.
Claims history: Prior claims increase rates significantly.
Geographic location: State laws and claim trends impact pricing.
Safety protocols: Strong risk management lowers premiums.
Agencies that implement thorough screening, safety training, and return-to-work programs often qualify for better pricing.
Staffing Cost Reduction Strategies: How to Get Lower Insurance Rates
Lowering staffing insurance costs is possible with the right strategy:
Classify employees correctly to avoid overpaying on workers’ compensation.
Implement documented safety programs.
Review contracts with clients to clarify liability.
Bundle policies with one carrier.
Work with a broker who understands the staffing industry.
Shopping your policy annually and partnering with an insurance specialist can result in significant savings.
Staffing Insurance Quotes: Get the Right Coverage at the Right Price
Every staffing agency is unique, which is why getting a tailored quote matters. Working with a specialist like Wexford Insurance ensures you receive coverage designed specifically for staffing firms — not a generic business policy.
If you want to better understand your staffing insurance costs and explore ways to lower your premium, request a staffing insurance quote from Wexford Insurance today. Our expertise in staffing risk management can help you secure competitive rates while protecting your business long term.
