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Marsh McLennan Agency (MMA) is a leading insurance brokerage that specializes in providing expertise in Professional Employer Organizations (PEO). Our team is well-equipped with the knowledge and experience necessary to navigate the complexities of PEOs nationwide.
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Success story from a PEO
$850K
The insurance broker of a Midwest PEO lacked the industry knowledge or carrier relationships needed to keep up with company growth. This was creating service issues in addition to high health insurance and workers’ compensation costs. Our team utilized its industry expertise and paired the PEO with one of the country’s premier workers’ compensation carriers. We also renegotiated their employee benefits program and offered cost-effective alternatives. As a result, the company achieved significant savings
cost savings on employee benefits premium
$250K
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Eight pros and cons of using a PEO
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5 Liability & Exposure Considerations in Health Care Staffing
Published on: September 26, 2022 | Tony Colucci
Jeff Sammons, OH Chris Pulos, OH
Chris Pulos’ large EH&B retail furniture client was looking for a competitive replacement on their management liability which was being non-renewed. The client asked Chris if MMA had a resource because their agent could not find an option. Chris introduced Jeff Sammons to their CEO and presented a marketing strategy using MMA’s carrier leverage and market access to find a competitive option. Unconvinced, the insured remained with their current agent. Over the following year, Chris and Jeff shared market updates and an audit of the insured’s entire program which uncovered several coverage deficiencies and that the current package had not been marketed in seven years. They presented these findings to the client who was impressed by their product expertise and aggressive marketing plan. The client awarded Chris and Jeff the business via BOR. The agency revenue was just under $50,000. Persistence and leveraging Chris’s strong relationship with the client were keys to our success.
Jon Trapp, IL
My biggest cross-sell client so far has been for Children's Home and Aid (CHA). While CHA initially onboarded as a P&C client, I took one of our meetings as an opportunity to bring up their current EH&B program knowing it would be a path of least resistance. I’m always tuned into the state of the not-for-profit industry and asked specific questions relating to CHA’s particular challenges, which got leadership excited to talk about EH&B. Because of my pre-existing relationship with CHA as their P&C broker, we had already built a foundation of trust that opened up the client for additional conversations about our offerings outside of P&C. They signed on to our EH&B services shortly after that meeting.
Words of Wisdom
Most of our competitors don’t have the BI benchmarking and data analytics tools that we have. Our ability to show prospects how they compare against their peers in areas such as limits, retentions and pricing is unparalleled and is an incredible tool to creating opportunity.
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Prior to making calls, collaborate with a BI producer or AE to gain confidence and increased understanding of available resources.
Year after year, our client survey results tell us that most clients are willing to refer Assurance. Use that feedback to confidently ask for an opportunity on their BI lines of coverage.
Anthony Way Senior Vice President & Team 14 Practice Leader
Marty Butler Senior Vice President & Team 13 Practice Leader
Ask for the referral from happy clients and be prepared to provide suggestions. What’s the worst they can say….No?
Develop a friendly, solid relationship with your service staff. On T13 we have had a long history of high employee retention and it’s no coincidence that our client retention rates are extremely high as well.
Lean into our senior living risk and claims management platforms. Our services, resources and expertise are unparalleled in the industry!
There is no time like the present to ask. If they’re a client, especially a new one, you don’t need to “prove yourself” you already have.
Don’t shy away from blue-collar/union risks. These could be large BI opportunities.
Michael Alberico Senior Vice President & Team 10 Practice Leader
Soft market or hard market, both present opportunities. Soft market is prices going down, have they experienced this? Hard market is prices going up, what is the broker doing to mitigate?
Don’t be shy about asking for the opportunity to review the overall insurance program. There are likely underlying issues you can jump on.
If your client has limited staff, offer up our risk services team/programs that provide internal support.
Be a good listener at client meetings. You may discover opportunities on other lines.
Alicia Mellish Senior Vice President & Practice Leader
In order to be successful cross selling – and I mean truly successful – you must have the proper level of expertise in the “other” discipline. It’s not sufficient anymore to “know enough to be dangerous.” I know this because I look at our most successful cross sell producers and they all have an advanced level of knowledge across disciplines that gains them credibility in the sales process and increases their ability to cross sell and close deals.
Don’t just rely on the relationship… meetings should have a purpose.
Tony Alberico Senior Vice President & Practice Leader
In the eyes of an insurance carrier, temporary and contract staffing tend to create distinctive situations, challenges, and opportunities. And, with each industry segment within staffing, insurance carriers will specifically structure coverage forms, terms and conditions, and premium pricing that will determine whether an organization fits within their risk appetite. Let’s unpack the complexity of these areas specific to the healthcare segment of staffing. Exposures fall into five categories: Professional Liability – Healthccare staffing agencies are responsible for credentialing and screening placed employees, but often the client contract will designate the healthcare staffing agency as the responsible party if an error is made by their clinical professional (partial or exclusive). Client contracts may include indemnification wording that strongly (or entirely) favors the
client company, and transfers some or all financial risk to the staffing agency. It is imperative that the healthcare staffing agency’s professional liability policy include “vicarious liability” to cover the mistakes or inaction of the medical providers they employ. Cyber & Privacy Liability – Although Cyber and Privacy Liability coverage may be required by client contracts, it is crucial health care staffing agencies maintain such coverage to protect their own bottom-line. Regardless of hosting data “in the cloud,” in the event of a data breach, it is the responsibility of the staffing agency to protect internal records (employee name, address, SSNs, etc). This risk also comes from mishandling a patient’s medical chart and client contracts may determine your agency to be responsible for some or part of a breach of data privacy if your employee is involved. Ensuring contractual obligations are balanced is imperative. If the data is stolen or compromised, it is the staffing agency’s responsibility to cover costs for: • Notification • Forensic and legal costs • Business interruption and system damage • Cyber extortion, and/or • Social engineering The most crucial piece to internal exposure is building strong network controls and training employees to avoid data breaches as a result of human error. Your insurance broker should assist and provide a list of controls that Cyber Liability underwriters recommend (require) to be in place. Abuse & Molestation – Unfortunately this sort of occurrence/accusation is happening at a more frequent rate in the health care industry. The cost of legal defense and awarded damages may breach costs of 6- or 7-figures. Many insurance policies will sub-limit or exclude coverage for such actions, so it is imperative to understand what coverage is afforded within your insurance policy. Employment Practices Liability (EPLI) – The frequency of claims for health care staffing (higher skill/higher wage employees) is less than that of industry segments with lower skill/lower wage employees. The highest payout for EPLI claims is higher given the annual income of the employees. This coverage protects your clinical professionals if harassed or mistreated by colleagues, employees of the client company, and even 3rd party vendors or customers of the client company. The best defense is found in your organization’s employee handbook and should include the protections you afford to your clients within contractual agreements. If an employee files a lawsuit against your client for damages, the contract could point to indemnification language that pushes that liability back onto the staffing agency. This is exceptionally harmful if your EPLI policy does not include “client coverage,” as your insurance carrier may deny coverage or require your organization be named in the lawsuit to have insurance coverage respond on your behalf. Workers Compensation (specifically, assault against an employee) – Health Leaders Media noted that in Q2 2022 alone there were over 5,000 nurses which filed reports of assault while on the job and your organization (and employee) has essentially no control over, but an increasing exposure. This can be exceptionally punitive for health care staffing organizations who participate in a loss sensitive plan such as a retrospective, large deductible, or captive program. Proper employee training to identify and avoid situations that can result in assault is key to keeping your clinical staff safe and reduce Workers’ Compensation claims as a result. Just as the industry is rapidly evolving, the landscape of risk is changing as well. It is imperative to remain in contact with a risk advisor to ensure your contractual obligations are met, your insurance policies will respond to your obligations, and your employees remain safe. The areas that underwriters focus on are the same areas your attention should be on – not only will it enhance your bottom-line, but more importantly it will ensure the health of your employees, organization, and other stakeholders.
How Can Your Health Care Staffing Company Prepare for a Recession?
Published on: April 3, 2023 | Jordan Markuson
While predicting the timing of a recession can be difficult, great companies get stronger in times of uncertainty and embrace being nimble and adaptable. They are quick to pivot strategies, innovate, and adapt to changing market conditions. These companies learn how to gain more customers and talented employees from competitors. Great companies are also fiscally responsible, understand the importance of having a strong balance sheet, and managing finances wisely. During tough economic times, they are able to weather the storm because they have taken the necessary precautions to ensure financial stability. Here are the ways your health care staffing company can prepare for a recession:
Secure Financing Before You Need It: Throughout the course of a recession, staffing companies may need to ask for financial help, even if it’s expensive. Don’t think of this as a sign of failure. Instead, try to get ahead of the curve by securing financing before you need it. You’re much more likely to be approved for a business line of credit when your company profits are going well, so do what you can to qualify. Reduce Unnecessary Expenses: One of the best ways to prepare your business for a recession is to carefully examine your expenses. As early as possible, look for any areas where business expenses can be reduced. Reviewing your Medical Liability and Employee Health & Benefits insurance can reduce your expenses and streamline the administration burden, resulting in significant savings. Engage Recruiters for Opportunities: Recruiters are heavily integrated in the front-line operations of your business. This means they’re often first to run across emerging opportunities or recognizing potential threats. Consider turning to them for ideas that could lead to fueling growth for the future. Every recession presents a unique opportunity for staffing agencies to expand and diversify their offerings. Offer Financial Tools to Employees: While it’s unlikely that small businesses entering a recession may be able to provide further financial help to their workforce, resources and guidance can go a long way. Some employers offer financial tools as a part of their benefits and wellness offerings, such as retirement or 401(k). If your company has this type of assistance available, tell your employees how to access it. These are often overlooked resources that you can promote to your employees. Leverage Technology for Efficiency: National demand for travel nurses increased by more than five-fold during the first wave of the COVID-19 pandemic requiring new operational strategies and technology that could scale with the increased job volume. Explore the marketplace to ensure your firm has the best tools in place to support recruiters and reduce redundancy in their roles. Hard economic times is inevitable, but it is important how your company prepares and adapt to these pivots that can create a stronger workforce. Contact your local Marsh McLennan Agency broker to discuss more ways to prepare and navigate your health care staffing company during a recession.
