How Do PEOs Work With You to Lower Workers Compensation Rates?

Many PEOs provide workers compensation insurance through the co-employment relationship, which takes some liability off your plate as a business owner. Because liability is shared, it should be in the PEO’s best interest to limit injuries, increase workplace safety and simultaneously lower your workers compensation rates.

A great PEO will work with you in three distinct ways to accomplish this:

Hands-on Risk Management: In high risk industries especially, it’s important for risk managers to see the workplace and your ways of conducting business firsthand. Risk assessments help identify areas that are an “accident waiting to happen” or pose a potential threat to you and your employees. Did you know that the small task of employee hand washing (or lack thereof) is the single most cited factor in outbreak investigations?  Your business needs to be equipped to stand up against aggressive lawyers in the event of a lawsuit. Your business may have overlooked areas that could result in a lawsuit or claim.

Safety Programs: PEOs can design a workplace safety program, and even organize and conduct safety trainings to ensure that employees are properly educated, aware of potential harms, and perform work more cautiously. It has been proven that when employees fully understand safety manuals and have resources (such as live demonstrations) available to them for additional help, workplace safety increases. Fewer injuries… fewer claims… fewer dollars to spend on workers comp!

Claims Management: Several claims against your business, and several lost claims, will undoubtedly increase your workers compensation rates. From an insurer’s eyes, you’re considered high risk.  PEOs manage claims for several million workers across the country as part of their service to small businesses. They are experts in risk management and go to bat on behalf of your business if and when a claim arises.

Ask what types of safety programs would be implemented or enhanced by your PEO in order to lower the number of injuries or claims from your workforce, and be wary of the PEO willing to sign you on without a thorough analysis.

If a PEO is willing to sign on your company without a thorough analysis, this may be a red flag. PEOs should ALWAYS care about your workplace safety and the amount of risk you have.

To learn more about risk management, safety programs, claims management, and what the ideal PEO relationship should look like, contact Employer Solutions Plus.