At Sixth Man Employer Services, we offer Workers’ Compensation Insurance as a key component of our PEO services. In California, where Workers’ Compensation Insurance is legally required for any business with employees, this insurance is often seen as both costly and stressful for employers. Partnering with a PEO can significantly alleviate these concerns. PEOs leverage their extensive network and negotiating power to secure Workers’ Compensation rates typically much lower than an individual employer could obtain independently. This means you benefit from exclusive rates and potentially substantial savings.
For California employers with a high Experience Modification Rating (EMR), also known as Ex-Mod, this partnership is especially advantageous. The EMR, akin to a credit score for insurance, reflects the risk associated with insuring your business. A higher EMR usually translates to higher insurance premiums. However, PEOs often have the flexibility to offer more favorable rates to employers with higher EMRs, providing a substantial cost advantage. In many cases, the savings on Workers’ Compensation Insurance alone can justify the decision to work with a PEO. With the additional range of services provided by PEOs, you gain further value and support, making it a comprehensive solution for managing your workforce and reducing administrative burdens.
What does it look like when an Employer uses a PEO for Workers’ Comp Insurance?
Here is how the two compare: