How Hiring a PEO for Workers’ Compensation Benefits Companies

Professional Employer Organizations or PEOS work with small to mid-sized businesses to provide HR services. The PEO enters into a co-employment relationship with the businesses. This allows the business to offset some costs and liabilities. The business can focus on its day-to-day business without worrying over HR-related issues. 

The PEO secures workers' compensation insurance for the company. They also review the claims and try to reduce the risk. Here is what you need to know about work comp solutions for PEOs.

PEOs Are Responsible for Workers' Compensation Insurance

Sometimes companies cannot afford to pay for workers' compensation. PEOs began to appear as a solution to this dilemma in the early 1970s. When the PEO works with leased employees, it becomes the employer of record.

PEOs Help Employers Cut Costs on Workers' Compensation

Since PEOs may be large companies, they tend to qualify for better rates than the average small business owner. This means that they may be able to pay less for the same coverage. The PEO transfers these benefits to the employer. Also, the PEO saves the employer from having to put down a significant down payment.

When a business uses a PEO, it allows them to save money on workers' compensation coverage. Also, the PEO handles all of the claims and investigations. It ensures that the employer and employees are protected.

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