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Many business owners turn to professional employer organizations (PEOs) for assistance with payroll administration and human resources duties. What business owners may not know is that PEOs also handle workers’ compensation.
With an average of 2.8 employees per 100 full-time employees suffering an injury or illness per year, it’s critical that your business obtains a quality policy that works for your team. [1]
Before we dive into the reasons your business should choose to partner with a PEO for workers’ compensation, let’s discuss what workers’ compensation is and what it covers.
What is workers’ compensation?
Workers’ compensation is insurance purchased by employers that provides medical benefits and wage replacement to employees who are injured at work or become ill due to a work related event. Workers’ comp is a legal requirement in 49 states, including Florida.
Continue reading to learn more about the top five benefits to partnering with a PEO for workers’ compensation insurance.
#1: Obtain a master insurance policy
PEOs function as a co-employer to your business, meaning that both the business owner and PEO share distinct employment obligations, such as liability and responsibility for employees.
Due to the co-employment nature of PEOs, they are able to place all of their clients’ direct employees under one workers’ compensation insurance policy. PEOs are able to gain access to better rates and discounts on a variety of benefits and insurance policies, including workers’ comp.
#2: Create a safer work environment
Workplace injuries can often be mitigated or prevented by having the appropriate safety measures in place and ensuring your team is adequately trained in how to complete their job functions safely.
PEOs will work with you and your team to provide training and safety materials to help you correct workplace safety hazards. The safety materials that your PEO provides will be in line with Occupational Safety and Health Administration (OSHA) regulations and inspections, ensuring your team is adhering to the right workplace guidelines.
#3: No down payment required — pay as you go
Many workers’ comp insurance policies require businesses to pay a deposit even before the installment payments begin. A hefty down payment can be difficult for a small business to afford.
When businesses partner with a PEO, they’re able to avoid this upfront deposit cost, allowing your team to save money.
PEOs also allow businesses to pay for their workers’ compensation insurance on a pay-as-you-go basis. This billing method means that your business pays the workers’ comp premium with each payroll that you run. This method helps ensure that your business is only paying for coverage needed based on the payroll.
Read more:
The five best professional employer organization (PEO) services to look for
#4: Provide expertise
Your PEO’s team are experts in their fields, and they’re able to provide your business with expertise into workers’ compensation insurance and how to properly handle claims.
Compliance requirements, both federally and on the state level, can also change rapidly and having a dedicated team of experts to help you and your team stay on top of requirements will help to ensure your business avoids fines and fees.
#6: Manage and resolve claims
Managing and resolving workers’ comp claims is a time-consuming and complex process, and business owners should be able to focus this time and energy on business development efforts.
When your business decides to partner with a PEO, managing and resolving workers’ comp claims becomes their responsibility. By leaving this process to the experts, you’re ensuring that your business receives quality workers’ compensation administration and management.
#7: Develop a return to work program
Your business’s PEO partner can also help you create a return-to-work program for any injured employees. They will assist in creating modified responsibilities once the employee is cleared by their doctor to return to work.
Creating light and modified duties will help your employees ease back into their normal job functions and keep them up-to-date with business operations.
Is your business looking for a PEO to assist with workers’ compensation?
PER has provided outsourced HR services to small and medium-sized businesses across Central Florida for over 25 years. We offer the extensive capabilities of a full-service PEO, while maintaining the personal connection of a small business.
As your co-employer, we assume all administration of this required policy and will work directly with the carrier to minimize costly escalated claims while assisting in creating light duty work to get employees returning to work quickly.
As a part of our comprehensive workers’ compensation services, we offer:
We strive to build trusted relationships with our clients and provide value in our compliance and advising services. As part of our comprehensive services, we offer payroll management, human resources, benefits administration, and more.
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Contact us today!
Source:
1: Foresight | Workers Comp Statistics That Reveal Key Focus Areas
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