During the 17th and 18th centuries, smallpox was the most serious infectious disease in the West and accounted for a substantial proportion of deaths, especially among city dwellers. The mortality rate varied regionally, with 10% in Europe and 90% in America. It is difficult to imagine that smallpox was one of the most feared diseases in ancient and modern history.

After an extensive and successful eradication program, not a single case of smallpox infection has been reported in more than twenty years. But the threat of this deadly disease reappears due to the small amounts of vaccine available. A preventive vaccination program to protect individuals, such as emergency and medical care personnel, is not an option at this time.

Like the smallpox disease once thought to be eliminated, the workers’ compensation market has once again become a threat as a “business killer” after being nearly eradicated in the mid-to-late 1990s. Since In 1998, almost all insurance brokers and company owners were sure that the insurance market would never be as difficult as it was in the late 1980s and 1990s. Companies would never again face closing down because their premiums consumed all your winnings and more. All signs of resurgence were there but, like the Pearl Harbor radar spots, they were ignored. Few prepared for what was to come, and the effect has been the death of many companies and irreparable damage to the bottom line of others. At the time of writing this article, I am aware of twenty-one recruiting companies that have closed their doors due to the high cost of insurance premiums. Some companies are limping trying to survive in the hope that the market will relax and the negative status of their profit and loss statements will return to positive. It is highly unlikely that we will see the soft market in the mid to late 90s for at least another two years and probably longer than that. Many of these companies will fail.

So what can a company do to survive this ordeal? The options are limited. A company could raise prices to pass the cost on to the consumer. In most cases, this will not work. Clients cannot afford to pay the additional cost of their premium because the economy is also affecting their bottom line. Companies familiar with the use of temporary staffing companies know how competitive the industry is and would likely move their business to another provider that has not been affected by sharp premium increases or stop using temporary staff altogether. Larger national recruiting companies will benefit because they are self-insured, as will companies that decided to switch to alternative insurance programs a few years ago. These programs typically require a large amount of up-front collateral that most businesses cannot afford today. Those who had the foresight to insure this type of program when earnings were high and funds were available have now satisfied their collateral requirements and, from an insurance perspective, are benefiting from this difficult market.

Other survivors are those companies with premiums of $ 1,000,000 or more. Although they maintain high retention levels of $ 250,000 to $ 500,000, the excess premium costs are reasonable. This is mainly due to the limited exposure to the wearer.

As in any catastrophe, some will not survive. Others may survive, but the scars will remain forever. For those who are willing to put in the effort, there are steps that can be taken to help survive this pest. When treating a serious medical problem, experts or specialists are used in the healing process. It is very important that you consider using workers’ compensation professionals to help you determine which treatment or combination of treatments will work for you in this process.

In a recent presentation from a mid-size staffing company, thirteen major carriers were contacted and nine immediately declined because they will not consider staffing companies. Whether this is due to insurance treaties with your reinsurers or your impression that the staffing industry is high-risk, it is an unavoidable fact. With only four operators considering presentation, the “snapshot” of a business or insurance convenience must be exceptional. It is extremely important that you identify the suitability of your insurance before submitting your application. Below, you will find the article “Do you know the convenience of insurance for your company?” The article explains the elements that go into the desirability quotient. Once you’ve determined your desirability quotient, you can start taking steps to improve it.

Once you have the best desirability quotient you can get, it’s time to hit the market. But where you go in the market and who takes you there can be just as important as your desirability quotient. Your first question should be “Does my broker really know my business and is he motivated to get me the best possible quote regardless of commission?” This is not requested to undermine the brokers. During the soft market, brokers took a beating. What you need to determine is whether they are trying to make up this year with their account. It is strongly recommended that a third party who does not benefit from the premium commission review the process.

Next, you need to determine the type of program that a) the operators will offer you and b) contains no hidden costs that will seriously affect your finances for years to come.

Today’s carriers generally offer only a few programs to policyholders based on the financial status of the policyholders. It is important to know which of these offers is a good offer. There are also some programs that seem like a good buy today, but could have devastating effects on your business for years to come. In the following article, we will identify the different types of insurance programs and the advantages and disadvantages of each. We will also include the program participation requirements.

Lastly, it is extremely important that you have, maintain, and monitor an effective security and risk management program. This program must be known and understood by all members of your staff and there must be clear and accurate evidence that it is used consistently as a common daily practice. Having a manual, attending or conducting a seminar, or having just one or two people familiar with your program will not be enough to satisfy the insurer’s concerns about exposure. Carriers have become more attentive to the signs of a “surface only” risk management program and will be quick to deny an application or price too high if they think their program is inappropriate.

Time is of the essence. If your renewal for this year has not yet occurred, it is very important that you start the process as soon as possible. It is strongly recommended that you start at least 90 days prior to renewal, but preferably 120 days. Get a projection of your future premium and start setting aside additional funds. You are unlikely to receive a premium reduction, so be prepared. If you’ve already renewed and your premium increases are killing your earnings, get help now. With the right approach, you may be able to take steps to qualify for a more affordable mid-term program by making some adjustments. The worst action is not acting. This plague will not go away anytime soon. Do something today!