For many Americans, particularly in the Southeast, WCW stands for . It brings to mind sweaty wrestlers, grappling against the odds, and seeking victory while facing overwhelming adversity. The WCW I want to discuss stands for “workers’ comp woes,” and oddly enough, it also conjures images of grappling against overwhelming adversity.
Very few things confuse small business owners as much as the inner workings of workers’ compensation insurance. Most entrepreneurs just don’t have modifiers, premium audits, and NCCI codes as part of their daily lexicon. I have met with business owners who weren’t even aware that their policy had lapsed. Still others had claims lingering in an indeterminate status for far too long, increasing the length of time that their modifier would be affected.
Many business owners I’ve spoken with have expressed that they felt helpless to affect their rate, or even to determine which provider might be the best fit for them. For many, workers’ comp is just a necessary cost that must be paid, regardless of how much the premium, or how costly the deposit. Those same business owners are just as bewildered by the year-end audit, which frequently requires even more premium, paid this time in a lump sum.
There are several processes you can implement to take control of this situation. First, utilize a Risk Manager that works directly with the workers’ comp provider to ensure that claims are closed quickly and equitably. A good Risk Manager also can implement policies and procedures that can demonstrably reduce potential claims, and therefore the rate that is being paid to the provider. However, the number one thing that can be done tocontrol your worker’s comp costs is to partner with a Professional Employer Organization (PEO) like Staff One HR.
Workers’ comp providers weigh the potential risk your company or organization represents against the potential premium that can be charged, in order to determine your workers’ comp rates. The size of your company figures heavily into this equation. The more employees your company has, the lower your rate in most cases. When you partner with a PEO like Staff One HR, the risk is spread among a much larger group, and your rates often are significantly reduced.
In addition, Staff One HR’s workers’ comp plan is “pay as you go.” This means you won’t have to come up with a lump sum deposit to start your policy, and you won’t be subject to a year-end audit! Staff One HR also provides an expert Risk Manager, so that claims can be closed and moved off your record as quickly as possible. Factor in the cost savings of having Staff One HR process and administer claims for you, as opposed to one of your in-house employees doing so, and you can see that partnering with Staff One HR can significantly decrease your costs and increase your employee productivity.
Our Risk Management team diligently strives to keep workers’ comp rates low, and working with a PEO like Staff One HR can be one of the best decisions a business owner can make to reduce this costly liability.
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