How Do I Reduce My Company's Workers' Compensation Costs?
Our first step is to fully understand your business and how relevant the cost of workers' compensation coverage is to your business. In some cases workers' compensation cost aren't a large part of a company's expenditures as the costs are minimal - clerical, legal, insurance agencies, outside sales are example of low cost workers' compensation categories. Truckers, roofers, painters, construction workers may pay as much as $30 - $50 per $100 of payroll so the cost becomes critical to the survival of the business.
For any type of business, we provide a thorough analysis of your current costs and include possible cost reduction solutions. In many cases we quote PEO's that specialize in various industries. For example there are PEO's that only work with Truckers or Construction Companies. In cases where we need to seek open market workers' compensation quotes, we work with our partner licensed agents to source the best solution for your business. There have been larger cases where we have been able to reduce overall costs by over $100,000 simply by choosing the best vendor for the client.
Part of the goal in selecting the best vendor for each company is to find a vendor that is pro active. This means one with a robust risk department that will actually go to the clients site and install safety programs, do risk visits while making safety suggestions like lock out, tag out programs, suggesting blood borne pathogen safety programs and many other services. Some vendors offer large incentive refund programs that can benefit those clients that pay high 5 or 6 figure workers' compensation premiums. With a PEO, your employees are on the PEO's workers' compensation policy so the PEO has incentive to make sure you have a safe work environment. This lowers their costs too.
Do You Need An Analysis?
Whether you are with a PEO or out on the open market, you could be leaving money on the table. With the rapidly changing landscape of health care, employee benefits and workers' compensation, it really makes sense to take a close look at how much value you are getting for the money at least one time each year. If it has been some time since your last analysis, connect with us and we'll walk you through it.
200 Employee Company - A Mini Workers' Compensation Case Study
More recently we worked with a company that has about 200 employees to reduce their workers’ compensation costs dramatically. Here is what we did for them.
This particular company is in the construction industry and has had some accidents on the job over the past few years. It got out of hand so much that their experience modifier went up to make workers' compensation almost unaffordable even though it's required.
They asked us to come in and look at their costs so we conducted our platinum analysis that allowed us to gather the data we need to help them make an informed decision. After our analysis, we took their company to several PEOs and were able to find them a huge savings.
THEIR OVERALL SAVINGS WAS IN EXCESS OF $100,000.
To say the business owner was excited is an understatement. Having struggled for some time trying to lower his labor costs, he was finally able to get it under control.
A Client's Story
Our Guide To Saving Money With A PEO
We've created an ebook to give you, the employer, everything you need to know about how to reduce your labor costs and add value to your company and employees through a PEO. Here is a quick list of the benefits the book offers:
- Understanding the Real Role of a PEO
- What is the Real Value You Should Receive From Using a PEO?
- The Benefit of Using a PEO's FEIN
- The True Cost of Using a PEO
A Message From Our Workers' Compensation Expert
There isn't one easy solution for workers' compensation insurance today. The correct solution depends on the business circumstance. For example, if a company's primary function is to put on roofs and they have had many accidents, they could be forced into the state's high risk pool. This could potentially cost so much, a company could be forced to close. Perhaps you have a company that hasn't had workers' compensation coverage before or they aren't sure if they are classified correctly. Our first step in helping a company identify a solution is to conduct an assessment of your current situation. Click here to get connected with one of our experts.