Staff Pro, LLC reduces workers’ compensation costs through strategic safety and claims management process

Staff Pro, LLC is a Minority Owned Enterprise (MBE) staffing firm providing front and back of the house staffing solutions to the hospitality and resort industries. In its 15+ years of operation, Staff Pro, LLC has grown from its original single location in Gulfport, Mississippi, to be a nationwide provider. In 2014, the company set goals to expand their geographic footprint and grow their business. During that time Staff Pro, LLC’s insurance broker was small, local, and didn’t specialize in the staffing industry. The brokerage had difficulties ensuring correct safety and risk management processes were in place to align with Staff Pro, LLC’s growth. Through an industry recommendation, they turned to a new business partner, Marsh McLennan Agency (MMA), for guidance. They needed a national broker that knew the industry and could provide scalability. The company saw close to 50% growth during their 2014-2015 policy year and had plans to expand into California.

Shortly after MMA began working with Staff Pro, LLC, they were facing either a non-renewal or 200% increase on their workers’ compensation program. A strategy was developed to focus on minimizing risk, managing claims, and lowering overall costs.

Part of the strategy included a Safety360 diagnostic assessment, which took an in-depth look into the current safety program to detect loss drivers. Three needs were identified: develop a safety orientation program, create a formalized incident investigation plan, and develop a formalized Return to Work program. Staff Pro, LLC’s leadership team took immediate action and hired an outside risk management consultant to begin actively managing claims and working on solutions to the identified loss drivers.

Immediate enhancements by Staff Pro, LLC included:

• Tracking claims by branch and client
• Implementing weekly “Toolbox Talks” on injury trends and safety tips
• Enhancing safety training to be client and job specific
• Creating new claim reporting processes, including utilizing new accident investigation forms
• Facilitating a Return-to-Work program with the third-party administrator

With a strategic safety plan in place and under way, MMA was able to secure a loss-sensitive large deductible insurance program that Staff Pro, LLC could directly benefit from. Instead of high premium costs going directly to the carrier, a large portion of claims would be funded by Staff Pro, so the fewer the claims, the greater the savings. Staff Pro then continued its commitment to safety and claims management by hiring an internal risk manager. The risk manager utilized MMA’s Risk Management Center and in-house claims consultant to further improve results.

Since 2015, Staff Pro, LLC has reduced their loss ratio by 36% and improved average claim costs by 43%. By improving loss results and switching to a large deductible plan, the company reduced their fixed insurance expense by 36% and experienced a 29% decrease in their incident rate. Their dedication to risk management positively impacted the lives of employees and provided additional capital and capacity for continued growth.