Workers’ Compensation Insurance
Claims Management and High NCCI Experience Modifier Relief
Employers have a legal responsibility to their employees to maintain a safe workplace. Unfortunately, accidents happen even when every reasonable safety measure has been taken. How the employer responds to the injury and subsequent medical case management is crucial to the well being of the employer and the employee.
Managing Workers’ Compensation claims is a complicated and time consuming process.
The co-employment agreement with a PEO takes away a significant amount of those responsibilities from the employer. PEOs have a complete Safety and Compliance Department to take over the claims reporting and the medical case management.
DOL Labor Laws, OSHA Reporting, Safety Meetings, Workplace Safety
In addition to this, PEOs perform work site inspections which include OSHA compliance, work site hazard assessments, safety meetings, OSHA Logs, and compliance with DOL workplace laws.
Pay As You Go Workers’ Compensation Premiums
A big advantage of working with a PEO is how premium payments are collected. PEOs have a Pay As You Go program. Work Comp premiums are paid as they accrue. This eliminates the need for deposits, advance premiums, and year end audits. This has a significantly positive impact on cash flow for businesses.
The large pool of employees in a PEO permits lower rates and also serve as a buffer against increasing loss premiums.
Companies with a history of workers compensation claims will have a high NCCI Experience Modifier, and will pay more for their insurance. PEOs on the other hand are able to spread that risk over a larger pool of employees and keep their modifier low.
Lower your NCCI Experience Modifier
Clients faced with increased premiums due to adverse claims history and a high E-Mod (Experience Modifier) can enter into a contract with a PEO company. Clients can benefit using the PEO’s low modifier, and for record purposes can claim that low modifier as their own after two years of being in the PEO co-employer agreement.
This is of particular interest to companies working in chemical and oil refineries, who are required to have a credit experience modifier. Adverse claim history can result in their modifier exceeding the allowable limit. The PEO’s low modifier will allow them to continue to work in those plants and refineries.
Summary of Services Provided
- Provide Workers’ Compensation Insurance on a Pay As You Go Basis
- Access to comprehensive Safety & Compliance Services
- Large employee pool provides a buffer against increased premiums
- Industry specific safety training, certification, & programs
- Safety inspections and assessments at no charge
- OSHA / DOL compliance assistance