You want to pitch the best workers’ compensation rates to the business owners you communicate with. However, you also must help them understand everything. As a retail broker, you have your hands full, balancing everything and helping your client align toward the best steps for their company. Business owners face various expenses, including payroll, taxes, and insurance. The latter is often particularly burdensome, and the cost may cause some companies to cut corners. It is rarely a wise idea and can be particularly ill-advised when the insurance is workers’ compensation. Indeed, companies that reduce their coverage may find that they pay the price if a claim occurs. Learn how to help your insureds access better workers’ compensation rates by partnering with an employer of record (EOR).
Negotiate Better Insurance Rates
Your clients want to save money. Likewise, if you insure high-risk businesses like roofing companies and other liability-prone providers, you may have difficulty obtaining coverage. Your agency must prepare to allocate the best resources toward this. Allcor specializes in serving accounts like these, including those that retain a PEO or EOR. Partnering with Allcor and an EOR can help your clients save money on insurance — including workers’ compensation coverage — by allowing them to secure lower rates. An EOR combines several companies’ employees into a single company and, in doing so, gains greater leverage in negotiating favorable insurance rates.
Outsource Claim Management
Another benefit of partnering with an EOR is the ability to outsource workers’ compensation claims. When your clients have an EOR to handle all of their payroll, employment, and human resources issues, the EOR will also be able to manage any claims that may emerge. Because an EOR is legally the employer of your clients’ workers, the EOR absorbs the responsibility of handling workers’ compensation and any associated claims. It can relieve smaller companies that don’t have the resources to secure affordable coverage and manage workers’ comp claims.
Make Payments on Your Schedule
If a worker’s comp claim occurs, facing the upfront cost could devastate your clients. Some EORs allow companies to avoid this by setting up payment arrangements on workers’ comp payouts. For example, a company may face a prohibitively costly expense from a workers’ compensation claim that could jeopardize the business without an EOR. An EOR, however, would handle the claim independently and divide its cost into multiple payments rather than a single lump sum settlement.
Focus on Safety and Prevention
Perhaps the most significant benefit of an EOR is the freedom it allows businesses to focus on safety and accident prevention — the factors most effectively minimize workers’ comp costs. Your clients want affordable coverage, but more importantly, they want to manage their business without worrying about tending to insurance claims, coverage requirements, and expensive monthly premiums. You can help them solve these problems by suggesting an EOR.
Allcor aims to serve clients that are unserved or underserved by standard markets. If you can’t get a competitive quote from others, we can help. Our clients include accounts in PEOs, those facing a surge in cancelations, and even those with a surplus of renewals. Call us at (865) 314-2796 for more information on how we can help you save.