Why Staffing Agencies Should Review Their Insurance Before Year-End

By T2 Insurance Solutions on December 8, 2025

As December approaches, staffing firms and their brokers should view it as more than just the holiday season. It offers the perfect moment to conduct a comprehensive review of insurance for staffing agencies — particularly workers’ compensation coverage. With year-end renewals approaching, a thorough check makes sure your risk profile, payroll, class codes, and coverage remain aligned with your current operations at any given location.

Common End‑of‑Year Risks for Staffing Agencies

Staffing agencies undergo several operational shifts throughout the year that can directly impact their insurance coverage and premiums.

• Payroll and class code mismatches: If you’re not using the correct class codes or your payroll projections are off, your workers’ compensation premium could be miscalculated. Staffing firms frequently have complex payroll reporting requirements, especially those operating across multiple industries.
• Operational expansion: If your firm has grown, added new locations, or started staffing in new sectors, your insurance program may no longer reflect your actual exposure. Misalignment here can create gaps in coverage.
• Audit exposure: Inaccurate estimates and misclassified employees could result in surprise charges during the audit process. According to the IRS, proper employment tax reporting and classification are essential — and the same principles apply when preparing for insurance audits.

How a Year-End Review Prevents Surprises

A structured year-end insurance review can surface issues before they become costly problems during audits or renewals.

• Minimize audit risk: A review ensures your projected payroll and class codes match your actual exposures, helping avoid retroactive premiums after a carrier audit.
• Monitor claims trends: Reviewing your loss history now allows you to spot patterns and take proactive steps to reduce risk going into the new year.
• Account for seasonal surges: If your agency sees increased placements during Q1, adjusting your projected payroll and exposures now helps maintain accurate and adequate coverage.

Questions Every Staffing Firm Should Ask Before Renewing

Before you finalize any renewal, consider these questions to confirm that your insurance program reflects current operations.

• Are we using the correct workers’ compensation class codes for each client and job site?
• Has our payroll changed significantly over the past year?
• Have we added any new clients, states, or industries to our service area?
• Are we adequately covered in every location we operate?
• Are we prepared for our upcoming audit with updated documentation?

How T2 Supports Year-End Insurance Reviews

T2 Insurance Solutions specializes in helping staffing agencies navigate the complexities of workers’ comp and multistate insurance programs. Our team brings decades of staffing-focused underwriting experience to the table.

• We help agencies accurately match class codes to worker duties and client industries.
• We support documentation and audit preparation to reduce surprises.
• We provide guidance on entering new states or servicing different industries.
• We benchmark your policies and highlight improvement areas before renewal.

Explore our workers’ compensation services to learn how we support staffing brokers with tailored risk solutions.

Don’t Wait — Start Your Insurance Review Today

With January renewals just around the corner, December is your chance to get ahead. Taking time now to reconcile your coverage ensures better compliance, audit readiness, and cost control.

Whether you’re a staffing firm owner or a broker looking to deliver more value to your clients, T2 is here to help. Call us today at 844-223-9005 to schedule your year-end policy review.

FAQ About Insurance for Staffing Agencies

Why is year-end a good time to review insurance coverage?

Because it aligns with renewal cycles, audits, and financial reconciliation. Reviewing now gives you time to correct errors and prepare for the year ahead.

What should staffing companies check before renewing workers’ comp?

Verify that payroll projections are accurate, class codes are correctly assigned, claims history is reviewed, and coverage reflects operational changes.

How do you avoid audit surprises as a staffing firm?

Accurate recordkeeping, payroll reporting, and classification — backed by expert broker support — help prevent unexpected charges during audits.

About T2 Insurance Solutions

T2 Wholesale Insurance Brokers is a reliable expert in workers’ compensation insurance. With a century of combined experience, T2’s founders bring unparalleled insight and understanding to the table. Specializing in catering to the unique demands of workers’ compensation insurance, T2 prides itself on its ability to craft comprehensive and competitive insurance solutions that address the diverse requirements and challenges faced by all industries.