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Worker’s Compensation and Risk Management

Worker's Compensation and Risk Management

Many Payroll and Outsourced HR service firms can assist SME’s, small and midsized employers to obtain Workers Compensation Insurance coverage for their workforce. Almost every state (TX optional) requires employers to purchase Workers Compensation coverage. Compliance varies by state, and depends on the number of workers you employ, the industry you operate in, and the location(s) where employees work. The level of administration, support and type of coverage will depend on the ASO or Offsite HR provider you select.

It is very important to understand your payroll, ASO or Outsourced HR partner’s relationship with their workers compensation insurance vendor. Most utilize 3rd party property and causality insurance brokers to purchase a Workers Compensation policy in the standard small group insurance markets. Your workers comp insurance agent is responsible for servicing claims, and communications with your WC insurance carrier. Some Level II Virtual Payroll companies, HROs and PEOs have an internal risk management department to service their payroll clients. They facilitate the process of obtaining coverage, processing premiums payments and administering claims.

SME’s, small and midsized companies can obtain discounts on their Workers Compensation premiums by participating in a “master group Workers compensation plan” offered by an Employee Leasing company or Professional Employer Organization. Companies in high risk industries, who have experienced a “shock claim”, or are suffering from an elevated claims history, can experience a significant reduction in workers compensation costs by finding a PEO to partner with.

By joining with hundreds or thousands of other small businesses under a “staff leasing” or “co-employment” arrangement, small and midsize companies can reduce their Workers Comp coverage costs in two ways. PEOs can offer lower WC rates by your occupational class, or can lower an employer’s experience “mod rate”. Some PEOs and Leasing companies can reduce premiums by offering cost sharing arrangements, where clients agree to assume a small per claim deductible for discounted WC rates.

Staff Leasing companies and PEOs are truly “Risk Management” partners. They employ professional safety engineers who can perform on-site worksite risk evaluations, ensure proper OSHA compliance policies and procedures are in place, and institute safety training for your entire workforce. They protect all of their clients by investigated claims thoroughly, eliminating fraud, and reducing the costs of litigation and medical payments.

If professional Risk Management, OSHA compliance, Safety Training and  Workers Compensation savings is your reason for choosing an HR provider. Arrange for a consultation with a PEO-Quote.com advisor to find the best PEO for your company’s Workers Compensation coverage.

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