Magnifying Glass
Back to Sponsored Content

WC Is The Last Nail In The Coffin For Small Businesses

17 Jul, 2009 WorkersCompensation.com

                               
CALABASAS, Calif., July 14 /PRNewswire/ -- According to a recent survey conducted by www.PEO7.com, Workers' Compensation rates are rising throughout the nation, pressuring businesses to find alternatives as they struggle to survive. For example, in the state of California, Workers' Comp rates increased 6% in January 2009, and are slated to increase another 24% in July.

With financial woes mounting, the State has proposed selling State Insurance Fund, which is the Workers' Compensation provider of last resort for small businesses. Though the insurance commissioner has objected to such proposal, it points to even higher rates in the future, regardless of the sale.  

The Workers' Compensation issue has been further exacerbated by AIG suffering major losses in 2008, sending their workers' compensation rates spiraling higher. Many AIG policy holders were left with no coverage and scrambled to find lower Workers' Comp rates, but to no avail.

While the current economic downturn shows no immediate signs of improvement, Professional Employer Organizations (PEOs) are proving to be a lifesaver for many small businesses.

PEOs are able to offer lower costs because of their innovative business model. A PEO administers payroll, workers' compensation, human resources, and employee benefits to a large number of companies, thus qualifying for much lower rates on a wide range of insurance products. These savings are then passed on to the clients.

The national economic crisis has begun to highlight the advantages of PEO Employee Leasing service providers. The lower rates that PEOs offer for costs such as Workers' Comp, healthcare, and unemployment are deciding factors for many businesses as they struggle to survive our current economic conditions, providing innovative options and saving businesses as much as 30% on their overall administrative costs.

As the economic climate worsens, www.PEO7.com anticipates that more and more businesses will take a closer look at the cost benefits of Employee Leasing PEO Services. Ironically, in this economic environment, outsourcing of administrative functions to PEOs finally makes sense.

About PEO7.com

www.PEO7.com is the largest PEO broker in the US, connecting companies seeking PEO employee leasing services with some of the finest PEO services in the nation.

    • Read Also

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]

    About The Author

    • WorkersCompensation.com

    More by This Author

    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    ReEmployAbility Announces Free Webinar: ‘Overcoming Jurisdictional Return-to-Work Challenges’

    ReEmployAbility, Inc.Contact: Rebecca Dearth(813) 261-3117 | news@reemployability.com Brandon, FL (May 10, 2023)- ReEmployAbility CEO and Founder Debra Livingston will be hosting a second free, live Work Comp Central webinar in their continued series to educate […]
    NCCI Annual Golf Event Tees Up $25,000 for Kids’ Chance of America

    (Orlando, FL–May 10, 2023)—The National Council on Compensation Insurance (NCCI) has given $25,000 to Kids’ Chance of America, supporting college scholarships for the children of injured workers. NCCI made the donation in conjunction with its Annual […]

    Read More

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]
    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    PhysNet Achieves Fifth Consecutive Year of SOC 2 Type II Certification

    Jacksonville, FL, June 3, 2024 – PhysNet proudly announces its attainment of SOC 2 Type II compliance for the fifth consecutive year, reinforcing its commitment to providing enterprise-level security for customer data within its cloud-based […]
    WorkCompCollege.com Welcomes Alistair Ienstein as New Academic Innovator 

    June 20, 2024 – WorkCompCollege.com is thrilled to announce the appointment of Alistair Ienstein as its new Academic Innovator. Alistair, a unique and revolutionary AI presence, is poised to transform the learning experience for students […]

    Request a Demo

    To request a free demo of one of our products, please fill in this form. Our sales team will get back to you shortly.