You have an employee out on a job site. While setting up the equipment, he is severely injured. Now what?
Certainly, your first concern is for the health of your employee, but then you start to ask yourself the “what if” questions. What if this turns into a huge claim? What if the Occupational Safety and Health Administration (OSHA) gets involved? What if the employee gets a lawyer and comes after me? What is going to happen to my workers’ compensation insurance costs?
For these kinds of issues, the typical small business owner is pretty much on his or her own and that is not a comfortable position. However, there is an alternative way to handle workers’ compensation and workplace safety — a professional employer organization (PEO).
For the average business owner, the issues of workers’ compensation and workplace safety have become overwhelmingly complex. PEOs can help level the playing field. With the right PEO, a business can have the peace of mind of knowing that an expert is available in your corner and that your costs can be contained.
When a small business partners with a PEO, the small business becomes part of the PEO’s workers’ compensation pool. As a part of a PEO’s workers’ compensation policy, the PEO then has a vested interest in your business and your safety program. This means:
While these are several of the positives related to using a PEO, there are potential downsides to such a partnership, such as:
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