American Staffing Assurance Co. has entered a risk-sharing agreement with
Hartford, Connecticut-based Sparta Insurance Co. and raised $4 million from
private investors, enabling it to begin selling workers’ compensation and other
insurance to staffing firms nationwide. American Staffing, based in Grosse Pointe Park, Michigan, is offering the
insurance, underwritten by Sparta, through its newly licensed affiliate,
American Staffing Assurance Co. of Washington, D.C.
“Assuming all goes well, we will accept more investment dollars,” said
president James Farber, one of 11 investors in the deal and founder of Executive
Strategies Inc. in Grosse Pointe Park, which will serve as program
administrator.
Five years from now, American Staffing hopes to have raised $250 million to
fund the acquisition and operation of a shell insurance company licensed in all
states, he said.
“[But] at this time, the greatest return on investment is generated by
partnering with Sparta,” said Farber.
clipped from workforce.com
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