Jan 16 2012
Employee Leasing Services for Assigned Risk Pool Employers
The best part of being a PEO broker is helping people find a solution that impacts their business and really makes a difference. Many of those moments happen when we’re able to rescue an employer from their state’s assigned risk pool. What’s a state assigned risk pool? While most employers are able to obtain workers’ compensation coverage through the voluntary market (meaning an insurer agrees to write the employer’s policy), there are many organizations that are not for a variety of reasons.
These companies may be in a high-risk industry, like a roofer or anarborist. Sometimes it’s related to a history of frequent or expensive work comp claims- or perhaps it’s just because a company is too new or too small to be a good risk. Since workers’ comp insurance is mandatory for almost all employers in every state but Texas - a market must exist to ensure coverage for employers unable to get access through the voluntary market. Therefore, state assigned risk pools were made available.
As you can imagine, any business involvement with government usually isn’t good. Many employers face work comp rates in excess of twice the amount of the going industry rate - just because they’re a new or small business. Plus, you can be asked for up to 90% of that up front!
We’ve recently helped tree service, roofing and staffing companies get out of these programs and into an employee leasing service. These employers have saved 33% as an average versus what they were paying for work comp through their states assigned risk pool. They’re also starting services with the employee leasing company from $0 to $500 down, pay-as-you go! I know there are thousands of companies out there that need this help to stay competitive - or to just stay in business. Give us call, we can help.
1-888-582-8388
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