Professional Employer Organizations (PEOs) work with many businesses in co-employment scenarios. In these situations, the employees of the original company also become employees of the PEO, and the original company and its employees reap many benefits from this situation. One example of this is the way in which workers’ compensation is handled. PEO workers’ comp can differ from regular workers’ comp in ways that are beneficial to the business working with the PEO.
A PEO can save a business a lot of time by taking over insurance-related responsibilities. One of these responsibilities is workers’ comp—when a PEO is involved, this organization secures workers’ comp insurance for the business it serves, freeing up management to focus more on running their company. In addition to securing the insurance, the PEO can also assist with things such as processing and reviewing workers’ comp claims.
PEO workers’ comp is often cheaper than worker’s comp that a small or mid-size company is able to obtain on its own. A PEO can also evaluate a business’ needs and develop ways to help mitigate risk, lessening the chances of an employee accident or injury that would require insurance payout or affect the company’s rates.
A PEO can be a wonderful tool to help a small business save both time and money. PEO workers’ comp is an excellent example of what these partnerships can bring to the table.