I find this very interesting. I think this company gets most of its revenues from companies that want to be "insured" by them through their workers compensation self insurance program. If they were an insurance company, they would be in receivership, but they continue to "insure" with rates 30-50% below insurance companies. Is this a house of cards or have they figured out a way to do workers compensation hugely better than any insurance company? Can someone educate me? I am open to learning.
BBSI has a local risk manager for every client who makes the employees safer and therefore less claims therefore lower rates. Pretty simple isn't it? Also the self insured employees are mostly blue collar, like construction and trucking and not office workers.
I'd be interested in others views, but I suspect that BBSI has a large critical mass of back-office workers. Other than paper-cuts, there aren't many ways a back-office worker can be injured on the job so their workers compensation rates are likely much lower. If a few of these same workers are employed at, say, a construction firm their WC insurance probably get's pooled with the construction workers who probably have very high insurance rates. So by shifting back-office functions to BBSI, the back-office workers that support the construction firm can be insured at much lower rates.
Just an educated guess...