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How PEOs Can Help Secure Workers' Comp Coverage in Tough Markets
How PEOs Can Help Secure Workers' Comp Coverage in Tough Markets

Learn how PEOs can help secure workers' comp coverage in tough markets by bundling insurance with HR, payroll, and risk management services

Updated over 2 months ago

A PEO (Professional Employer Organization) policy is where a business partners with a PEO to handle not only workers' compensation insurance but also payroll, HR, and benefits. The PEO essentially co-employs the workers, which means they take on some of the responsibilities for employee management, including securing work comp coverage.
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Why the wholesaler is pushing for a PEO policy:

  1. Risk Pooling: PEOs combine multiple small or mid-sized businesses under one workers' comp policy, spreading the risk. This makes it more attractive for insurers.

  2. Better Risk Management: PEOs often have safety programs in place, reducing work comp claims, which lowers the risk for insurers.

  3. Administrative Benefits: PEOs manage payroll and claims processing, which simplifies things for insurers and ensures more accurate premium calculations.

  4. Harder-to-Place Policies: For industries or businesses that are high-risk, standalone workers' comp policies might be tough to place. A PEO package offers a solution by bundling work comp with other HR services, making it more appealing to insurers.

In short, offering the workers' comp policy through a PEO could help you get better rates and coverage, especially if the business is in a tough-to-place market.

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