Pizza Delivery Work Comp

[JAM]

Im looking for a good competitive WC carrier IN California that accepts deliveries. 250+ LOCATIONS.The usual suspects either dont like the delivery exposure or cant get the rates we need. Thanks.

[Chad Filley]

I have a couple PEO markets that could do this. I will check on some standard market carriers and get back to you

[Direct PEO]

Jam,

I have access to numerous PEO markets that would like the opportunity to bid on this account if you haven't already placed it.

Best Regards,

Jeff Spadafora
Highpoint Underwriters, LLC
Direct PEO Solutions, Inc.
(904) 886-6904 Direct Line
(904) 626-9522 Cell Phone
jspadafora@highpoint-ins.com

[JAM]

I'm not familiar with the PEO model. Can you explain further.

[TheInsKid]

A Professional Employer Organization (PEO) is defined as an organization that provides an integrated and cost effective approach to the management and administration of the human resources and employer risk of its clients, by contractually assuming substantial employer responsibilities and risk, through the establishment and maintenance of a co-employer relationship with the clients employees.
More specifically, a PEO establishes a contractual relationship with its clients whereby the PEO:

Pays wages and employment taxes of the employee out of its own accounts;

Reports, collects, and deposits employment taxes with state and federal authorities;

Establishes and maintains an co-employment relationship with its employees which is
intended to be long term and not temporary;

Assumes responsibility as an employer for specified purposes of the workers assigned
to the client locations; and

[Shagster12]

Jam,
I'll try to give you the 'nutshell' version.
PEOs (Professional Employer Organizations) operate by taking control of the employee base for your clients and enter into a 'co-employer' agreement with them. They will become the 'Employer of Record'. They will take over the processing of payroll, cutting paychecks and paying the taxes for your client under their own FEIN. Your client will maintain the disciplinary control and hiring and firing duties of the employee base but everything else is done by the PEO.
I have several clients placed with PEOs where it is a perfect fit for them. There are also many circumstances where the PEO option is not a good fit, but that is only defined on an individual basis.

Warning: There is also a stigma attached to the PEO market that developed many years ago so approach this topic carefully with your client if presenting as an option. 10-15 years ago PEOs got a bad reputation for many reasons, mostly having to do with mismanagement of their programs and funds... This is much better regulated on both a state and Federal basis now so is much less of a concern but the old reputation still exists so tread lightly. Also, each PEO operates in a different fashion and under different guidelines so be sure to get to know ALL the details before presenting. They may be backed by standard company paper or may be self insured. They may issue individual policies and report to the WCIRB or issue Certificates under a Master Policy.
And most importantly to your clients, most PEOs will have a Composite rate that they offer which will include the Tax Rates, Comp Rates and Administration fees! BE SURE YOU GET THOSE DEFINED!
And lastly another word of caution, most PEOs also have a seperate rate/fee schedule for various necessary functions of the payroll system such as charges for separate issues of checks off payroll track, garnishments, and for any other 'special' need. They may also have a per claim deductible on the comp which will increase costs immediately!MAKE SURE YOU GET THOSE DEFINED!
Because of these additional fees the allure of the better comp rate can overshadow the whole picture and you end up with a very dissapointed client. Be cautious and KNOW who you're dealing with in the PEO market.
I strongly recommend you only use someone with a proven track record of minimum 5 years in business but ideally 10 years or more...Best advice for dealing with PEOs is the same as for any carrier/policy you sell, due your diligence and make sure you and the client understand all the ramifications of what you're presenting them before you place the coverage!

Hope this helps you,
Shagster

[kiswest]

I agree with Shagster. I had a client that was ok with a PEO when they were small, but as the company grew the fees were awful. The PEO was not forthcoming about what they were actually charging for and my client was paying heavy fees. It was very hard to get the policy cancelled and replaced with a payroll service and new policy. We did it and were able to save the client.

[Chad Filley]

Jam,

Shagster's explanation of a PEO is pretty correct. Providing payroll, WC, tax management, HR assistance & benefits for the base employees of a specific business. As far as all of his warnings, they are all accurate as well, all those things do exist at some place in the PEO environment. As far as minimizing & alleviating those risk your best bet is to find and established PEO Broker whose focus is on placing clients into PEO's. A good PEO broker is going to be able to address/explain all of the various differences in the way that a PEO does business so that there are no suprises down the road.

[aahorncole]

There's a great video on YouTube on Human Computer Interface where someone has written a software which is based on MS-DOS and that you can use to order pizza. For those of you who wonder, it works.