Risk & Workers’ Compensation
As a business owner, you are probably familiar with the tedious nature of worker’s compensation. For that reason, many employers look to hire a resource who is familiar with and/or specializes in accounting to ensure the right numbers fit in all the right places. Have you thought about the potential benefits to “hiring” the manpower of an entire company to do the work for you at a more cost-effective level? That is exactly the problem a Professional Employer Organization (PEO) is here to solve.
One of the many PEO services that are provided is the access to top-rated workers’ compensation policies with trusted carriers across the nation. Upon becoming a client, you are entering a co-employment agreement and the opportunity to sign on to one of their custom compensation policies (excluding ND, OH, WA, WY, Puerto Rico, and the US Virgin Islands as they are monopolistic states that require employers to purchase coverage from government-operated funds for policies). By leasing your employees to the PEO, the responsibility falls to the PEO regarding matters of workers’ compensation coverage. Seen as a positive move for any business, the PEO will specialize in proper workplace safety practices and compliance, and strong financial backing in the event coverage is required.
Under the co-employment agreement, it is important to note that the client maintains authority over the hiring and firing of their employees. In the event of potential or repeated compliance offenses, the PEO may make a strong “suggestion” regarding an employee before initiating agreement termination. Any violation of compliance or payouts for workers’ compensation adversely affect the cost for all the PEO’s clients.
Avoiding accidents in the workplace by maintaining the highest quality of safety practices is the best option across the board. Because of this, a good PEO may conduct routine inspections of the workplace to see if there are any areas that require improvement. Most PEOs avoid policing the business, waiting for the employer or employee(s) to make a mistake, by instead supplying educational materials and free or low-cost OSHA training certification workshops to promote workplace safety across all affected industries.