PEO Pros

Workers' Comp Insurance – PEOs

Viking Underwriters

New Alliance with Viking Underwriters

Viking UnderwritersPEO Pros is proud to announce their appointment with Viking Underwriters, a MGA/wholesaler for property and casualty insurance lines, specializing in workers’ compensation insurance.

“PEO Pros has established a known and respected presence in the industry” Viking principal Dale Hanson tells us, “We have worked with them many times in the past and we are glad to re-establish the relationship.”

“The names Dale Hanson, Skylar Rupp and Marshall Gordon are legends in the PEO world,” PEO Pros CEO Will Tenney reports, “and we know they can provide the markets, the underwriting and most importantly, the service that our clients require. We’re glad to have the access to their expertise and strategic partnerships.”

This adds several carriers to the PEO Pros arsenal.

For more information please use the form below.

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Workers’ Comp Update

Master Workers’ Comp Policies for PEOs and Staffing Companies

Workers’ Compensation coverage continues to be a big problem for startup PEOs and staffing companies. In certain states (California, for example), it is nearly impossible to find a carrier willing to take a chance on a startup operation.

“The staffing industry is particularly tough.” agent Will Tenney tells us. “Carriers that would have a look before have closed their eyes. The rising cost of claims is causing insurers to exercise extreme caution with untested staffing and PEO companies.”

The business has always been cyclic in nature, and it appears that a downturn is due.

What Changed?
The comp industry is best described as “long tailed.” Incidents and occurrences that happened 6 to 8 years ago are still showing a large effect. In states like California and New York, the policies of “employee first” are starting to show costs. The practice of “pay first, investigate later” is taking it’s toll on carrier surplus, and claims reserves are rising throughout the industry.

A spokesperson from a national carrier with a large PEO/staffing presence told us, “It’s not that PEOs and Staffing companies have a higher incidence of claims. That seems to be a level playing field. However, the process of resolving them can take longer when dealing with high deductible policies. Hence, the reserves build up and are held for a longer period of time. This makes taking on a startup PEO or staffing company a much riskier proposition to the actuaries.”

Is There an Upswing Coming?
The answer most given is “too soon to tell.” The wave of optimism sweeping the industry with a conservative administration is there, but many are waiting for that “long tail” to pull through.

What Can a Startup Do?
PEO Pros has been challenged by this dilemma. Clients have been advised to seek out a state fund / assigned risk situation to develop some history (at least three years.) This makes them much more attractive to a carrier.

Why Does Three Years History Help?
When a carrier takes the risk of underwriting a PEO or staffing firm, the potential downside can be very large. Consider a standard $250K high deductible policy. Should the PEO or staffing firm go under the carrier is then responsible for all the claims and associated expenses. Collateral helps, but doesn’t cover it all except in rare cases. The legal costs alone usually eat through collateral in a rapid fashion.

The actuaries prefer to have an established “book of business” to study, to predict performance by studying trends, and the three year (minimum) history.

Why Can’t We Grow Organically?
PEO Pros tells us: “We get asked this all the time. The startup wants to know what they can write and they will go find it. It sounds like a perfectly good business plan until you see the actuary’s side of it. They have no history, no performance metrics or industry trends to study. It is difficult to make a decision in a vacuum.”

Certainly, an established firm can continue to grow organically, but the initial approval is going to require a measurable book of business.

This is frustrating to startups. PEO Pros relates to us: “We often hear the complaints from the startup firms with words to the effect of ‘How are we supposed to start a business?’. It is frustrating to us as well, as we want to help. It is not a pleasant feeling, advising someone to go to a state fund to get three years experience first.”

What Can a Startup Do to Enhance Our Prospects?
There are a few things you can do to make your submission more attractive:

  • Assemble a spreadsheet of proposed clients that have at least three years loss history
  • Have company and personal financial statements ready, current and in good shape
  • Senior board and staff resumes should reflect many years experience in the industry
  • Avoid the tough states for now. Set up a corporation in an easier state and start there, before expanding in to California, New York, etc.
  • Consult with PEO Pros about putting together a professional submission letter

If you would like to hear more about a master workers’ comp policy for your PEO or staffing firm, please call us at 407-490-2468 or use the contact form below.

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Comments - for PEO services it would be helpful to know how many employees you have, what states do they work, what do they do, and an rough idea of what your payroll is and how often (weekly, bi-weekly, etc)
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EmployerNomics Franchises

EN-brochure_Page_5It took a lot of time, energy and resources, but EmployerNomics is now a nationally available franchise.

With help from Franchise Marketing Systems, we have completed our compliance and due diligence. We are still finishing up the licensing in some states but that should be done very shortly.

Use the contact form below to get more information on franchising.

If you are looking for a low overhead, low maintenance business with long term residual income, we may be the answer for you.

Consider these points:

  • Can be run from home (to start with)
  • No inventory
  • Very low franchise fee
  • Training included and additional training/assistance available
  • Recession proof B2B sales model
  • Proven track record

Go to our EmployerNomics franchise page Franchise Info to get our sales information.

Medical-Marijuana-News

Medical Marijuana

Medical-Marijuana-NewsMore and more states are legalizing prescription cannabis (for medical use.) This has got people to thinking about how this can affect workers’ comp “Drug Free Workplace” programs.

Tuesday November 4th marks a landmark day in Florida as (by early polls) this amendment shows signs of passing by an overwhelming margin.

PEO Pros would like your input on the situation. Please use the contact form at the bottom of this post to give us your opinion, feedback, etc.

We found one very interesting article published by Mountain Land Rehabilitation, (excerpts shown below).

Can we continue to have a drug-free work place policy?
• Absolutely. In fact, some states specifically permit you to do so.
If an employee is using medical marijuana, is he/she responsible for notifying the employer he/she is using medical marijuana?
• No. (PEO Pros thinks that this will be changed in Florida, as use of medical marijuana will probably be proscribed in sensitive job capacities, such as driving, operating heavy machinery, or other critical positions.)
Does federal law trump state law?
• Yes, in most cases. However that is a continuing issue of debate.
Can we take adverse action against an employee who is legally using marijuana?
• Yes, with some state-specific exceptions.
How will this affect the Department of Transportation (DOT) Drug Testing program?
• It won’t at all. The DOT has issued a statement noting that there will be no impact to federal programs.
What happens if an employee who has a prescription for medicinal marijuana has an accident at work?
• This will depend on the specific state, along with the details within your workplace policy. Marijuana cannot be prescribed (with very limited exceptions). The use of marijuana can only be recommended by doctors. You may also be able to deny Workers’ Compensation benefits in states that allow you to do so.
Will Workers’ Compensation insurance cover the injury or will that be an exclusion due to the employee being under the influence? If not covered, will the employee have a legal claim due to his usage being tied to a medical need?
• So far nothing has changed in the Workers’ Compensation world with regards to marijuana use. Some states have specified that insurance does not have to cover medical marijuana.
Can any physician prescribe medical marijuana for any medical condition or are prescribers and conditions limited?
• Medical marijuana cannot be prescribed in any state (with one exception used in very limited instances). The use of marijuana can only be recommended in such states that allow for medicinal use. Each state law outlines who is able to make the recommendation and under what qualifying conditions.
We have staff in multiple states. What is the best way to standardize policies across the board?
• Due to the way state laws differ and are ever changing, you simply can’t standardize a policy across the board.
What if an employee lives in a state where marijuana is legal, but works in a state where it is not?
• Typically employers have the right to include the screening for marijuana in their drug-free workplace policy, but this can vary by state law. In general, employers are not required to impose legal marijuana standards in states where the personal use of marijuana is illegal.
Will a candidate’s state-issued marijuana drug card be proof enough that he can legally use the drug?
• This will depend on the criteria in each state. The recommendation card is only the result of the individual qualifying under state criteria.
How long does marijuana stay in your system?
• This will depend on many different factors, including but certainly not limited to: the frequency of use; potency of substance; method of ingestion; personal metabolism; and the method used for screening. The recent use of marijuana can be best detected via oral fluid (approximately 1-12 hour detection time window). Other screening methods include urine (approximately 2-30 day detection time window) and hair follicle (approximately 2-90 day detection time window).
How will legal marijuana use by employees impact our insurance rates?
• In most states, you cannot have insurance pay for marijuana. However, that doesn’t address the other health-related impacts that may or may not affect health insurance rates

Please give us your comments below.

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Hourglass PC

Hourglass PCAs part of our strategic and contractual alliance with Stonehenge Insurance Solutions, we are happy to work with a growing Property and Casualty insurance agency, Hourglass PC.

Based in Tequesta, FL, Hourglass is expanding throughout the state, and eventually hopes to have offices nationwide.

Senior Agent Greg Siebern tells us, “We are focusing on the personal lines of home and auto, as well as the small business products such as general liability, workers’ compensation and business owner packages.”

As part of the marketing plan, Hourglass is sponsoring the Orlando Runners and Riders cycling team, Hourglass Cycling. On the belief that more and more business owners and C level executives are engaging in amateur sports such as cycling and running, Hourglass wants to take a leadership position in the Health and Wellness industry.

“Cycling is the new golf.” Will Tenney of PEO Pros tells us, “When you are riding in a group of 50 to 100 cyclists for several hours every weekend, there is conversation going on at all times. Where there is conversation there can be networking. Where there is networking, there is opportunity to help.”

Hourglass PC and PEO Pros have teamed up to sponsor an amateur cycling team

Hourglass PC and PEO Pros have teamed up to sponsor an amateur cycling team

Client Profile: Engenium Staffing

JWT-Jason-IrvingJason Irving returns to us as a client with his new company, Engenium Staffing, a technical, engineering and professional recruiting and staffing firm.

“PEO Pros was and still is our best option for securing workers’ compensation and other insurance products.” Jason tells us, “We come here first and never need to go anywhere else. Now that they are partnered with Stonehenge Insurance and Hourglass Property and Casualty, they can take care of our other needs as well.”

We are happy to provide Jason and his company with workers’ comp, general liability, umbrella liability and even have one of our partner agencies working on his homeowner’s policy.

Here is a short interview with Jason where he tells us of some exciting positions available in his industry:

Website Maintenance Complete

Server_Maintenance_legoMid Florida Digital websites were experiencing difficulties resolving to subdomains, and server maintenance was performed.

All of the sites below are related to PEOPros.com and were affected by redirect problems. We switched from Windows to Linux servers in order to allow better service. We wish to thank our technical partners at NewTek for their help in this transition. They are a fantastic web provider with the best support system we have yet encountered.

The change to Linux has become necessary due to security problems with Windows servers.

The transfer is 100% complete but we are currently in a beta test mode. Please report any errors you find to us.

Certain parts of this website and others maintained by Mid Florida Digital may experience difficulties during this time, including
John Tenney
Orlando Runners and Riders
Sean Ashman Foundation
Maximum Cheese Productions
Laid Back Business Builders
The Tenncom Group
Air Orlando Charter

This transfer was completed Thursday, March 27th, and we are now watching for any residual errors.

New Insurance Agency Alliances

Agency Alliances

Our property and casualty agency has been creating strategic alliances with other large agencies to supply even more markets for business insurance, both to the traditional business owner and PEOs.

Agencies we work with include:
Stonehenge Insurance Services – PEO workers’ comp
Hourglass PC – PEO workers’ comp
Cypress Risk Management – large workers’ comp policies
Pontell Insurance – Business and personal lines
Petrucci Insurance – Business and personal lines
Corsair Insurance Agency – Doctor and Lawyer Professional Liability
Elite Insurance – Business and personal lines
I-surance, LLC – health insurance professionals

AngryAtPhoneCompany

800# was out of service, now back

AngryAtPhoneCompanyFor some, unexplained, bizarre, inter-phone company competing reason, our 800# was only working for calls originating outside of our home state of Florida. Apparently this was some problem relating to an “intra-Lata” agreement, whatever that is.

We are told by our carrier, “The situation has been remedied.”

Thank you,
PEO Pros

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Is PEO Comp Better Than Traditional Comp?

Workers’ Comp Better with a PEO?

Is PEO Comp Better Than Traditional Comp?While there are many advantages to having a PEO manage your workforce, many times it is troubles with Workers’ Compensation Insurance that brings the client to a PEO.

Is it better to be with a PEO? To have a professional partner to assist you with risk management? We of course, have a bias, but here is another point of view. This is an excellent article written by Antony Kelly
Antony Kelly’s Article

Here are some excerpts we particularly liked:
“Simply put, traditional workers comp coverage will require a small business owner to make an upfront deposit, based on an estimate of their gross annual wages. The company will send quarterly information to the insurer, who then calculates the bill and requests payments. Since these are all estimates, however, an audit is required, including a reconciliation process that will help bring the numbers together. Unfortunately, if the deposits and quarterly estimates do not cover the total amount due, the company is mandated to reimburse the carrier at the end of the year. This could potentially be a substantial cut to the small business person’s cash flow. Interestingly enough, payments that extend beyond the balance may roll over into next years beginning balance; nice for the carrier, bad for the business owner. ”

“PEO companies not only provide you with pay as you go workers compensation but also outsourced benefits and a variety of resources that help you comply with employment related issues and administrative paperwork. In fact, many businesses under 100 employees should be able to significanly reduce their in-house administrative burden through the use of a PEO, which provides additional value over traditional and pay as you go workers comp plans. ”

Thank you to Antony Kelly for writing this article, and to Shane Underwood for finding it.