Risk Management, as a combined management process can protect a business from most threats of financial loss to the entity. We secure better programs through a PEO that provides significant cost savings opportunities in the co-employment relationship.
Unique opportunities to share exposure with a PEO can grant better cash flow for a small to medium sized business. Using a PEO often alleviates the audit process of Worker’s Compensation carriers. Additionally, Certain PEO’s have programs relative to trend history in experience; where a credit at the end of a good trending year may be issued by the PEO to save the client money and incentivize safer workplace environments.
Risk Management is rarely a term used when it comes to Human Resources. The fact is that extremely important HR aspects of business that most owners and executives don’t think of proactively can end up costing a business millions of dollars. Don’t fall susceptible to reactively paying huge fines and penalties from the Department of Labor, and protect your business today from the liability of potential litigious action from former or current disgruntled employees that our PEO partners will protect your business from having in the first place. With respect to governmental compliance, PEO’s will put you ahead of the curve and out of the court room when it comes to HR.
Many businesses today are not compliant when it comes to HR. This is a fact and a very scary one at that. Most PEO’s will provide the tools necessary to maintain better structure internally when it comes to managing your workforce. Everything from Hire to Fire:
- Job descriptions
- On boarding
- Benefit Enrollments
- Performance management
- Training & Development
- Labor Law Compliance
- Taking Disciplinary Action
- Termination or Separation of Employment
PEO’s will include (EPLI)Employment Practices Liability Insurance because they share some risk as a Co-Employer and partnering with a PEO will help you reduce liabilities within governmental compliance by offering an HR aspect to their services. EPLI usually covers an employer in the areas of :
- Hostile Work Environment
- Wrongful Demotion, Discipline, or Failure to Hire or Promote.
- Wrongful Discharge
- Constructive Discharge
- Failure to Accommodate a Religious Practice or Disability
- Retaliation for Exercising a Legal Right, Supporting Another’s Exercise of Legal Rights, or Violation of Whistle-Blower Laws
- False Imprisonment, Intentional Infliction of Emotional Distress, Assault, Battery, or Invasion of Privacy
- Failure to Comply with Leave Laws (such as the FMLA)
- Violation of Public Policy
When we discuss Risk Management often we think of hard to place businesses or industries:
Many PEO’s that we have relationships with will be able to help. Most PEO’s will “carve-out” risky aspects of coverage under their service agreement and continue providing services for Payroll, Employee Benefits, and HR without Worker’s Compensation or their Risk Management Programs making it easier to get an approval for many of the benefits of using a PEO. They will also sometimes carve out medical benefits keeping that business with current relationships.
We have solutions for you, give us a call to discuss your specific needs.
We recommend that PEO clients maintain separate EPLI coverage. PEO’s often maintain master policies but have aggregate claims limits for their entire client basis. A key consideration to additionally ensure your business is protected from events that took place prior to the relationship with a PEO, as you may have a claim from a date prior to joining a PEO that may fall in a lapse period or trailing period after you cancel your EPLI coverage by joining a PEO.
Most importantly, The Workforce Management Agency is here to help you control and strategize ways to minimize financial loss!