Besides the obvious answer that a Professional Employer Organization will usually offer lower rates, there are many other important differences. For example, your PEO is your business partner in helping your staffing business maintain safe operations, so it can offer lower rates than your competitors who use the State Fund.
Your PEO partnership is also unique in a few additional ways:
1. Your PEO will work with you on making sure you receive the lowest possible legitimate rates for your various job codes. Since the State knows it is usually the “last resort” for your workers compensation insurance, they really have no incentive to help you lower your rates.
2. Your PEO will work harder to investigate accidents and claims. The PEO has an economic incentive to only pay legitimate claims, since they do not want to lose you as a client (if your rates should increase from fraudulent claims ) and they are responsible as an insurer if your claims exceed your premiums. Conversely, the State Fund, knowing they are your insurer of last resort, has little incentive to investigate claims.
3. The State Funds staff are usually “9-5ers.” If you have workers compensation needs after hours, like receiving a rate for a new code, then you will have to wait until your request meets the States time table.
These are all reasons that if you are still using the State Funds for workers compensation insurance, you should get quoted with a Professional Employer Organization ASAP.
Contact Work Comp Staffing Solutions at davidstaffing@gmail.com and visit us at www.StaffingCompSolutions.com.
The quote is Free and like your future PEO, we are always available to help you.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
Visit Work Comp Staffing Solutions at Booth 104 at the A. S. A. Orlando Conference
Work Comp Staffing Solutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.