The professional employer organization (PEO) industry is aiming to build insurance carriersí trust and increase PEOsí opportunities to obtain workersí compensation insurance policies for workers in PEO arrangements. Forty PEOs have been certified by an independent institute for their best practices in workersí compensation risk management, and 12 others are working toward certification.
PEOs arrange workersí compensation coverage, provide risk management and manage claims for several million workers as part of their service to small to mid-sized businesses. PEOs also enable their clients to cost-effectively outsource the management of human resources, employee benefits and payroll. As a result, their clients focus on their core competencies to maintain and grow their bottom line.
As the insurance market hardened after 9-11, PEOs found it more difficult to obtain workersí compensation insurance. For this reason, the National Association of Professional Employer Organizations (NAPEO) worked aggressively with the insurance industry to lay the groundwork for a certification program to help build the carriersí confidence in PEOsí risk assessment and management.
The genius of the program is that its certified practices were developed primarily by workersí compensation carriers. They determined risk management best practices as the foundation. The PEO Workersí Compensation Risk Management Certification Program was launched in 2003 by the Certification Institute (CI), an independent nonprofit corporation promoting industry professionalism and best practices. The programís Board is composed of representatives of workersí compensation carriers, PEOs and other executives with experience in workersí compensation risk management.
Distributed by HR Marketer.com
PEO Industry Aims to Build Trust of Insurance Carriers
Forty PEOs have been certified by an independent institute for their best practices in workersí compensation risk management, and 12 others are working toward certification
