When you hire a PEO, you can get help with a wide range of business functions, such as payroll administration and benefits management. Hiring a PEO is also a great way to lessen the burden of handling workers' compensation claims management and regulatory compliance. Working with a PEO allows companies to offset risk levels by distributing it between their own organizations and their PEOs. However, while many companies understand the various benefits they can access by working with a PEO, they don’t have detailed information about what hiring a PEO or what workers’ comp management entails. If that describes you, don’t worry. Here’s what to expect when you hire a PEO to manage your workers’ compensation risk.
The PEO Model and How it Works
Under the PEO model, when a PEO takes on a client, they assume partial responsibility for workers’ comp risks and claims. This means it’s important for PEOs to ensure the risks they’re taking are calculated. To ensure they’re managing risks appropriately, PEOs will often offer workers’ comp management services that go beyond what you might expect those offerings to include. Some of the sub-categories of service offerings within workers’ comp management include claims management, cost containment, and drug testing.
When you hire a PEO, they’ll be able to provide you with claims management services and support. Most PEOs have an internal claims department that’s responsible for monitoring vendors and providers on the behalf of their clients. This monitoring will allow your PEO to resolve claims for your company so that you and your employees can focus your time on other pressing business matters.
Some PEOs will offer additional claims management services under the umbrella of managing workers’ comp. These can include return-to-work programs, fast claims reporting, and directing care to qualified providers. If you’re hiring a PEO for the first time, be sure to ask them if their claims management services include any auxiliary offerings.
Although PEOs don’t typically perform drug testing themselves, many will offer drug testing assistance services as part of their workers’ comp management package. Your PEO may provide your business with a post-accident drug testing policy and consult with you to offer strategic guidance that will ensure you remain compliant with DOT standards and avoid making costly errors.
Choosing the Right PEO
Your workers’ compensation coverage is high-stakes. It needs to be handled by a qualified and experienced PEO. For more than 35 years, SPLI has provided workers’ comp management and related services to business leaders like you. If you’re interested in partnering with SPLI, you can contact us here.