Labor SMART, Inc. Becomes Self Insured in 14 States
Labor SMART, Inc. an emerging provider of on-demand blue collar staffing primarily in the south eastern United States, has announced it has become substantially self-insured in 14 states. This marks the achievement of one of the company's long-stated goals.
"This is a significant positive for us," said Ryan Schadel, CEO of Labor SMART. "Our new large deductible worker's compensation insurance policy will improve cash flow and result in a lower cost of sales. We expect this program to add one to three hundred basis points to our gross profit margins almost immediately," he said. Schadel added that Labor SMART has had self-insurance for worker's comp as a primary goal since inception. "We are thrilled that we have been able to meet this goal earlier than we originally projected and with much less collateral than usually required. Attaining this coverage demonstrates the capability of our world class operations team and their ability to execute on our long term objectives."