From workers’ compensation to group health coverage, employers need access to insurance services to cover their legal obligations and provide attractive benefits. Smaller businesses often discover how hard this can be. Getting good rates is hard when you have few employees, and the insurance market is confusing.
Turn to a California PEO to help you with your insurance services. PEOs put teams of expert HR and payroll professionals at your fingertips to set up and administer insurance, payroll, and many other HR tasks. NetPEO can help you find the perfect California PEO for your business. Here’s why you should partner with a California PEO for insurance services.
Partnering Gives You Leverage
Partnering with a PEO for your HR and payroll needs gives you leverage to get better benefits and cheaper rates for your insurance needs. Insurers often charge less per employee if you have more employees. The co-employment relationship gives you far more employees on paper.
When you enter a co-employment relationship, your employees will look like they belong to the PEO on paper. This lets the PEO combine all the employees from all their clients and approach benefit providers with an enormous group. This incentivizes benefit providers to give cheaper rates.
Cheaper insurance rates mean you can offer more and better employee benefits, improving employee retention and making your business more competitive in the fight for talent. Don’t forget that you’ll be covered as well.
PEOs Keep Regulators Off Your Back
Once you have employees, some forms of insurance are required for your business. The most important is workers’ compensation coverage. If you don’t get this insurance and regulators find out, you can face both civil and criminal charges that could destroy your business.
You don’t need to have an injured employee to get charged, either. All that needs to happen is someone notifying the regulators in California that you don’t have coverage and have employees. Fortunately, avoiding these consequences is easy if you have help.
Regulatory compliance is a big reason many small businesses in California partner with a PEO. You don’t have the time to go through all the regulations to stay compliant and still run your business. A PEO will free you from worries about insurance regulations affecting your company.
Types of Insurance Services
If it involves employee-related insurance, NetPEO can help your business get it for cheaper. Here are some of the types of California PEO insurance services we administer for our clients:
Workers’ Compensation
The most important coverage in the beginning for new businesses is workers’ compensation. It is required by law as soon as you have an employee, whether part-time or full-time. Don’t neglect this important coverage! You’ll also protect yourself once you’re covered.
Group Health Insurance
Group health insurance is one of the most sought-after benefits by employees. A strong group health insurance plan will encourage your employees to stick with your company and keep them healthier. Healthier employees are more productive and have higher morale.
You may also choose to add dental or vision coverage to your group health insurance plan. These additional benefits will further protect the health of your employees.
Liability Insurance
Businesses also need liability insurance to cover their employees if a third party harms them on the job. As the employer, you have a responsibility for the well-being of your employees while they’re working for you, and liability insurance covers cases that workers’ compensation doesn’t.
Life and Disability Insurance
If your business is in an industry with a lot of danger, another coverage you could get is life and disability insurance. This can protect you from wrongful death lawsuits and other rare cases that allow victims to sue you for damages.
Insurance isn’t the only thing that PEOs can do for your business, and there’s more to these benefits than just selecting a policy and paying premiums. Working with a California PEO will give your employees a team they can reach out to if they need to make claims or have questions about their policies.
For managers and owners, a PEO can rescue them from needing to know every detail about HR and payroll questions. There are good reasons people can make an entire career out of just HR or payroll! They’re specialized jobs that need experts.
What Other Services Do PEOs Provide?
Anything that falls within the scope of payroll or human resources can be handled by a PEO. Some of the other services California companies hire PEOs for include:
- Tax compliance
- Payroll processing
- Regulatory compliance
- Risk assessment
- Policy creation
- Recruiting and retention
- Onboarding and training
When you work with a PEO, you can have them do some of these, all of these, or even just one thing, like handle your insurance issues. A PEO can share the workload with any existing HR and payroll staff. This lets your in-house team focus on long-term projects for your company.
Do I Lose Power When I Partner with a PEO?
No, but this is a common misconception. A PEO has no power over hiring and firing or what your staff does day to day. They also do not help with selling or promoting your products. Their role is strictly within the sphere of professional services.
A PEO will suggest changes to your company to help you come into compliance with laws or to protect you from potential future problems with employees. You would have to do these things whether you had a PEO to protect your company or not. The PEO will help you prepare for them.
Finally, the co-employment contract will clearly spell out which responsibilities the PEO will handle on your behalf. NetPEO will help explain and negotiate the contract so you can feel comfortable knowing what each side needs to do to fulfill its obligations.
NetPEO Helps California Businesses Get Insurance
NetPEO connects businesses with local California PEOs for insurance services and much more. We have one of the highest satisfaction rates in the industry and one of the largest pools of PEOs to choose from.
Find out how a California PEO can help you get insurance to cover workers’ comp, health, liability, and more. Contact NetPEO to get a free quote and consultation meeting. We’ll discuss your business goals and needs and find the right PEO for your business. Call today.
