{"id":1143,"date":"2014-05-01T10:36:50","date_gmt":"2014-05-01T14:36:50","guid":{"rendered":"http:\/\/peopros.com\/index.php\/?p=1143"},"modified":"2015-02-02T16:41:55","modified_gmt":"2015-02-02T21:41:55","slug":"myths-about-using-an-agent","status":"publish","type":"post","link":"http:\/\/peopros.com\/index.php\/myths-about-using-an-agent\/","title":{"rendered":"Three Myths About PEO Agents"},"content":{"rendered":"

\"why<\/a>W<\/big>hy does a PEO need an insurance agent for their master workers’ comp policy? What does an agent or agency know that they don’t?<\/p>\n

Why not just go direct? Cut out the middle man! Doesn’t it cost more money to have an agent involved?<\/p>\n

Sounds good but in “real life” things don’t work out that way.<\/p>\n

Here are some myths exposed about using an agent in the PEO Master Policy process:<\/p>\n

Myth #1: Using an agent will cost the PEO money<\/b>
\nSounds reasonable doesn’t it? After all, the agent gets a commission and it’s a zero sum game isn’t it?<\/p>\n

No it’s not. Carriers pay commissions to internal sales people if there is no agent involved, since the commission is already budgeted in to program costs. Also, an agent can negotiate<\/b> a better deal, not having to worry about conflict of interest problems.<\/p>\n

We recently examined two similar, master policy with a captive type deals from the same carrier. One with an agent, one direct. Guess which deal had more profit built in for the PEO. Go ahead. Guess.
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