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Providing a safe working environment is an employer's responsibility. Unfortunately, preventing accidents and injuries is not always possible. Workers' compensation insurance is designed to address the risks and ensure that employees have the funds available to pay for medical bills or related costs if they are injured at work. Although the exact requirements will vary based on the industry and the company, most businesses must purchase workers' compensation insurance before hiring any employees. While the coverage is required, it is possible to save on coverage costs and still protect employees in an effective manner.

Work with a PEO For Workers' Compensation

A professional employer organization, or PEO, offers several services and solutions for small business owners. The services that a PEO often provides include:
  • Handling a company's payroll
  • Ensuring that employee benefits are available for a reasonable cost
  • Providing workers' compensation insurance that is appropriate for the business
  • Taking on human resources requirements
Outsourcing human resources and insurance requirements will help a business grow and thrive. A PEO helps save on the cost of coverage by negotiating with the insurance providers and obtaining competitive rates. Furthermore, it ensures that the company is complying with any legal standards that are set by the state. The PEO will also evaluate the current safety standards and will help create a realistic safety plans so that the rates will reduce in the future.

Use the Right Classification

Inaccurate business classification impacts the cost of workers' compensation by adjusting the level of risk. Each business is classified by the risk that is associated with the products or services that it provides. Evaluate all of the reasons for the stated quote before purchasing an insurance policy. When an underwriter determines that there is a high level of risk, or even a moderate risk, it will result in higher costs and premiums. If the classification is inaccurate, then an employer can reduce costs by writing clear reasons for the inaccurate classification. Business owners should also use caution when applying for coverage to ensure that the paperwork properly details the nature of work that is required in the company. A construction company, for example, has a much higher risk of injury than a retail business that only sells clothing. Employers should evaluate all of the details in the paperwork and make sure that the business is properly identified before applying for workers' compensation.

Create a Safety Program

A safety program is a plan of action that will prevent injuries before they occur. Generally, a company should have specific steps that employees are required to take when emergencies arise that will prevent injuries. Your safety program should include employee training programs and hazard prevention strategies. Small businesses should always identify any existing hazards and take measures to eliminate or reduce the hazards before injuries occur. Write down the safety standards and procedures. Make sure every employee has read and understands the company procedures before they start working.
Benefits of PEO Options
Although it is possible to save on coverage by comparing several options and ensuring that the insurance provider is using an accurate classification for the business, a PEO offers an opportunity to limit the costs without the complications. A professional employer organization will reduce the costs by pooling certain resources and services into the same plan. As a result, the cost of workers' compensation insurance is reduced to a reasonable rate. Along with the cost benefits, a PEO provides an opportunity to limit the risks associated with employee information and legal standards. An employer will meet or exceed the state standards for coverage with a PEO. Each state has different standards and regulations that an employer must follow to comply with the laws. Since the requirements are complicated and the specific details related to the company's level of risk can vary significantly, obtaining assistance by outsourcing the search for workers' compensation will make it easier to avoid problems with the state's legal standards. Every company must purchase workers' compensation insurance after hiring an employee or several employees. The problem is that the costs can add up quickly, especially for a small business with a moderate level of risk. By working with a PEO broker and comparing several options, employers can narrow down the choices and find the best PEO and insurance policy for the specific needs of the company without wasting time or taking unnecessary risks. Get Workers' Compensation Insurance

If you’d like to find out more about how PEOs can help you provide great benefits and payroll management at less than you are paying now, contact us today for a free consultation.

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