PEO Insurance

Small business in any industry that want to provide group health: the health savings alone could save you tens of thousands of dollars, regardless of what industry you are in.

Businesses that would like to reduce costs and time in training of HR personnel, and dealing with increasing rules and regulation: when you delegate these duties to the PEO, you don’t have to manage, train, educate, and pay as much for your staff. You can keep your eye on the things that matter to you – sales, marketing, growth – basically, your business!

Businesses with a high workers comp rate: PEOs always excel in the heavy duty work comp classes like construction, restaurants, farms, manufacturing, and trucking. When you have a high rate, whether because of your industry or your claims experience, you are a prime target for savings in a PEO.

Businesses with a high workers comp Xmod: PEOs excel with those businesses that have had a surge in claims. PEOs are willing to assume higher levels of risk than standard workers comp carriers and help you mitigate against future claims with their loss control and safety services, which are typically included without extra cost, which then brings your Xmod mod and overall cost down.

Businesses that bid jobs based on the estimated payroll for that job: Contractors, manufacturers, agribusiness, as well as any businesses that provide custom services or products, benefit greatly by the predictable and accurate cost of your labor.

Businesses that would like to eliminate annual workers comp audits: there is no more audit because your workers comp IS your payroll company. It is the same entity. You no longer have to gather data from payroll company and try to make sense of it. No more filling out forms asking you about 1099s, subcontractors, class codes. You no longer have to wonder how tips, bonuses, and overtime pay specifically need to be reported and hope that your audit doesn’t come back with a big invoice.

Regarding Workers Comp, a PEO can solve a lot of problems.

• High Xmods. An Employer of Record arrangement will eliminate your Xmod. This is because your employees are no longer yours. They are the PEO’s and subject to the PEO’s characteristics.
• Lack of availability due to lapses in coverage, high losses, and/or high hazard occupation. Often times, a business may have a hard time finding workers comp coverage due to the aforementioned characteristics. Since the PEO manages more of your business, they aren’t underwriting based on one aspect of your business (workers comp). They are also handling your health and payroll, which isn’t as “high risk” as your workers comp. Therefore, it’s a good bet for the PEO and a winning plan for the business.
• Cancellations due to non-cooperative audits. When a business doesn’t complete its workers comp audits, it repels other workers comp carriers from wanting to insure it. With a PEO, there is no audit, so the PEO doesn’t have to worry about a lack of compliance in this department.

Regarding Group Health, a PEO can solve a lot of problems.

• Rates. Small businesses get small group rates, which are higher. Big businesses (50 employees and up) automatically get a better rate. When you sign on through a PEO, businesses of any size get the large group rates.
• Plan availability and coverage options. Small groups are often limited in the plans and coverage options available to them. With a PEO, businesses of any size get the wide variety of options available to them.