I just finished working for a PEO-type company, and I gotta say this is an option more companies should look into. That co-employment is such a benefit to managers who can focus on getting their work done and stop worrying about the red tape of HR. Although I worked for a company that specialized in employee leasing, it’s still something that most companies should look into, especially while they’re just beginning to grow!
I represent an insured that was with a PEO based upon the representation that their comp rate would be lower.
It was initially but the poor/non-existant claims management led to an out of control loss ratio with no representative to advocate for the client. They were cancelled with 31 days to replace coverage and no one wanted to touch an employer coming out of a PEO for risk of taking uninsured losses.
Our client ended up having one option, The State Fund at twice the premium.
It took a year to get the existing losses under control and find another market.
They don’t care about the individual account, only their loss ratio.
I just finished working for a PEO-type company, and I gotta say this is an option more companies should look into. That co-employment is such a benefit to managers who can focus on getting their work done and stop worrying about the red tape of HR. Although I worked for a company that specialized in employee leasing, it’s still something that most companies should look into, especially while they’re just beginning to grow!
I represent an insured that was with a PEO based upon the representation that their comp rate would be lower.
It was initially but the poor/non-existant claims management led to an out of control loss ratio with no representative to advocate for the client. They were cancelled with 31 days to replace coverage and no one wanted to touch an employer coming out of a PEO for risk of taking uninsured losses.
Our client ended up having one option, The State Fund at twice the premium.
It took a year to get the existing losses under control and find another market.
They don’t care about the individual account, only their loss ratio.