A New Take On Workers’ CompApr 27 2016, by Sales in
The past few decades have seen vast changes in insurance, including workers’ compensation. This is natural, since society is constantly transforming itself and our insurance products need to keep up to continue meeting people’s needs. It’s up to us as agents to stay on top of these changes and find the best solutions for our clients. Many agents will at some point or another write risks that will bump into issues. Believe it or not, a great alternative that agents can use to work through these issues is the PEO. Here’s what you need to know about how PEOs can help you combat workers’ compensation insurance problems.
The first thing that agents need to understand about PEO is that the business owner/insured doesn’t actually give up control of their employees. The employer is still responsible for supervising, hiring, terminating, and managing pay scales for employees. Many seem to think that PEOs take over all aspects of employee management but this simply isn’t true. PEOs DO offer a full range of HR services and many have in-house assistance for clients, usually at no extra cost since this service is built into the fees. This works out great when it comes to workers’ compensation because PEOs have a much better claims management system than those of most insurance carriers. This will lead to a smoother, less stressful experience for your clients. And PEOs can get insurance plans for your clients that are often cheaper than your clients could get for themselves. The bottom line is that PEOs provide the same advantages for small business owners that larger corporations get all the time. Because of the many services offered by PEOs, both agents and clients won’t have to stress as much about workers’ comp issues.
Did you know that PEOs are growing at a rate of 15% a year? That’s a pretty decent climb, so it’s important for agents to start learning about PEOs and their benefits to agent and client alike so that you’re not left behind. Unfortunately, there are some payroll companies out there (ADP and Paychex are a couple examples) who aren’t agent-friendly and are trying to take your clients by offering workers’ compensation insurance through their own insurance agencies. And they’re starting to realize how great PEO programs are and have even started some of their own. If you want to meet these competitors head on, you’ll need to accept that PEOs are now part of their strategy and integrate them into your own agent toolbox.
You’re probably already working with traditional workers’ comp markets and many of those companies are great in their own ways and serve your clients well. But the fact of the matter is that these carriers and their programs can’t always meet your needs and your clients’ needs. In order to be the best agent possible and provide the best service possible to your clients, you need to explore every alternative. One such alternative, which has been a saving grace for many agents and their clients’, is the PEO.