Emerging Trends in Workers’ Comp Claims for Temporary Staffing

By T2 Insurance Solutions on November 12, 2025

As we look toward 2026, temporary staffing firms face a rapidly shifting landscape in workers’ compensation. From heightened claim frequency to sharper scrutiny of class codes, staffing firms and the brokers who support them must adapt quickly to stay competitive and compliant.

For firms navigating this evolving risk environment, partnering with an expert in temporary staffing workers’ compensation insurance can be the key to protecting margins and managing exposures.

What’s Changing in Temp Staffing Workers’ Comp?

To keep up with shifting regulations and risk patterns, here’s what staffing firms and their brokers need to stay alert to.

Injury Patterns Are Shifting

Temporary staffing agencies, especially those placing workers in warehousing, logistics, and light industrial roles, are seeing a rise in musculoskeletal and repetitive motion injuries. These injuries often stem from short-term hires performing physically demanding tasks without sufficient ergonomic awareness or support. 

 Class Codes Are Under the Microscope

Insurers and state regulators are applying greater scrutiny to classification codes, particularly in high-frequency sectors. Misclassification not only leads to underpriced premiums and audit disputes but can also trigger nonrenewals or reclassifications that result in higher future rates. The National Council on Compensation Insurance (NCCI) notes vast differences in claim frequency across industry groups, reinforcing the importance of accurate class code assignment.

Frequency Is Climbing in Key Classes

Light industrial placements, food processing, warehousing, and healthcare support roles are driving increased claim activity. Many of these environments lack comprehensive training or onboarding for temporary workers, amplifying exposure and potential claim costs. The NCCI reports a nearly 3% increase in lost-time claim frequency in 2021 compared to previous years, with the manufacturing sector in particular experiencing significant frequency gains, partly due to the rise in short-tenured workers.

Claim Trends To Watch in 2026

These emerging patterns are reshaping how temporary staffing claims are reported, managed, and priced:

• Short-tenure claims are on the rise: According to recent insights from NCCI, short-tenured workers experience a higher frequency of injuries than full-tenured workers, especially in sectors such as manufacturing. These risks are particularly relevant to staffing firms placing workers in fast-paced environments.
• Industries with the highest impact: Temporary workers placed in warehouse distribution, home health support, and food packaging sectors are driving up average claim costs. These roles often involve high repetition, limited supervision, and variable work-site conditions, all of which contribute to loss potential.
• Digital triage is becoming standard: Telemedicine and nurse triage programs are increasingly used to manage first reports of injury. Staffing companies that adopt these tools early can often reduce unnecessary ER visits, lower claim severity, and speed up return-to-work timelines.

How Staffing Firms Can Reduce Risk and Claims Frequency

Small changes in your operational strategy can have a significant impact. Start with these proven tactics:

• Onboarding isn’t optional anymore: Quick placements shouldn’t mean skipped safety training. Even a 15-minute walkthrough of job hazards and expectations for personal protection equipment can reduce incident rates.
• Site inspections make a difference: Proactively evaluating client workplaces before placements provides staffing firms with insight into unsafe environments and gives them leverage to push for improvements.
• Data is your best defense: Staffing firms equipped with historical incident and claims data can flag problematic worksites, monitor claim frequency by role, and adjust placement strategies accordingly.

Why Wholesale Partners Matter More Than Ever

T2 Insurance Solutions brings staffing-specific insight to the table. With a century of combined experience and a specialty focus on workers’ compensation, T2 Insurance Solutions helps brokers and staffing clients navigate class code issues, rating complexity, and emerging loss trends with confidence.

• Multistate, multi-carrier flexibility: Whether your client operates in one state or 20, T2 Insurance has national licensing and market access to place competitive coverage across diverse industries and jurisdictions.
• Proactive risk support: Through tools like nurse triage recommendations, mod analysis, and client education, T2 Insurance isn’t just a quote engine. It is a long-term partner in risk mitigation. Learn more about how you can partner with T2 to support your staffing clients.

Prepare Now for 2026 Claims Trends

The workers’ comp market for staffing isn’t getting easier, but it is getting smarter. By understanding where risks are rising and which trends are likely to impact premiums and loss costs, staffing firms and brokers can make informed decisions that protect their business.

Want a second look at your current program or book? Contact us to request a quote or risk review from a T2 Insurance specialist. Let’s make sure your clients are ready for what’s next.

FAQ About Workers’ Comp Claims

What are the current trends in workers’ comp claims for temporary staffing?

We’re seeing a rise in short-tenure injuries, especially among warehouse and light industrial placements. Insurers are also increasing their focus on proper use of class codes and injury triage programs.

Why do temp staffing firms face higher workers’ comp risks?

Temporary employees often receive limited training and are assigned to physically demanding roles with a higher risk of injury. This combination — along with short job durations — creates more opportunity for claims early in the employment cycle.

How can staffing companies reduce workers’ comp claims in 2026?

Investing in streamlined onboarding, conducting client site inspections, and using triage programs can significantly lower claim frequency and severity. Firms that use placement data to identify patterns are also better equipped to prevent losses.

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.