WCIRB Report Shows Continued Increase in Claim Frequency

California’s Workers Compensation Rating Bureau announced that claims frequency specifically indemnity claims frequency continues to be on the rise.  WCIRB’s annual update to its publication “Analysis of Changes in Indemnity Claim Frequency” report  highlights trends particularly with indemnity claims resulting from cumulative injuries.  the report  finds “Based on WCIRB surveys of cumulative injury claims, both the proportion of cumulative injury claims involving multiple insurers and the proportion involving attorney representation has increased in recent years”


Read the entire article on the link below:


Top 10 Causes of Workplace Injuries

Risk management/mitigation is an area where PEOs can improve internal processes to turn their workers compensation program from an expense into a profit center.

By making yourself aware of the major frequency drivers for workplace injuries a PEOs leadership team can focus internal efforts around lowering the possibility of these causes of injury so they are less prevalent for their client companies.

Click the link below to find out the “Top 10 Causes of Workplace Injuries.”

Top 10 Causes of Workplace Injuries.

PEO’s Make American Employment Better

In my mind, the greatest thing about the coemployment model is a better experience for the Ameican worker based on aggregated pricing and spread of expenses.

Laurie Bassi who has written for publications such as Harvard Business Journal, has concluded with the proper limitations that “PEO clients had annual employee turnover between 10 and 14 percentage points lower than the national average of 42 percent per year, depending on the comparison group used.”

That is a big deal !  Check out the stats that speak to it in the enclosed white paper —

Can’t wait for the next wave of empirical evidence that proves out that the PEO model is the best distribution there is for American employers and their employees.

Let’s go!

Paul Hughes

Passage Of Legislation Providing Recognition Of Professional Employer Organizations In The Federal Tax Code Is Historic Moment For Industry

The National Association of Professional Employer Organizations (NAPEO) hailed the passage of legislation defining professional employer organizations (PEOs) in the federal tax code and creation of a voluntary certification program for PEOs within the IRS. PEOs provide comprehensive HR, benefits, tax administration, and compliance services for small and mid-size businesses.

“PEOs play a key role in helping small businesses grow and thrive, and now Congress has recognized and codified a key element of that role so that even more small businesses can benefit from the services and expertise PEOs provide,” said NAPEO President and CEO Pat Cleary. “The economic data proves that small businesses using a PEO grow faster, have lower employee turnover, and are much less likely to go out of business. We are thrilled that Congress has now passed this legislation to formally recognize and certify PEOs so that small business owners have the assurance they need to let a PEO handle employment tax issues along with back office administrative and HR tasks while they focus on running a successful business.”

The legislation (the Small Business Efficiency Act/SBEA) was part of the tax extenders bill passed by the Senate this evening after having passed the House two weeks ago, and a proposal similar to the SBEA was included in President Obama’s 2014 budget. It creates a voluntary certification program for PEOs within the IRS. To become IRS-certified, a PEO would have to meet financial standards (including bonding and independent financial audit requirements) and satisfy reporting obligations and other appropriate standards set by the IRS. Once certified, a PEO would take on sole liability for the collection and remission of federal employment taxes for worksite employees. Small and mid-sized businesses that contract with certified PEOs would be assured that they would not be liable for employment taxes once they remit their employees’ tax withholdings to the PEO.

“This is truly a historic moment for the PEO industry. We urge the President to sign the extenders bill and we look forward to working with the administration on the regulations so we can get the necessary framework in place to broaden our reach within the small business community,” said NAPEO Chairman Brent Tilson, president and CEO of Tilson HR in Greenwood, IN. “Our heartfelt thanks and appreciation go out to the key champions of this bill, Reps. Kevin Brady (R-TX) and Mike Thompson (D-CA), and Sens. Chuck Grassley (R-IA) and Bill Nelson (D-FL). They should be commended for their commitment to and support of small businesses nationwide.”

Approximately 250,000 businesses use PEOs, and PEOs provide access to healthcare coverage for as many as six million people. Through a PEO, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. According to a recent study, by noted economist Laurie Bassi, businesses in a PEO arrangement grow 7-9 percent faster, have 23-32 percent lower employee turnover, and are 50 percent less likely to go out of business than companies not using a PEO.

The National Association of Professional Employer Organizations (NAPEO) represents about 85 percent of the industry’s estimated $92 billion in gross revenues. NAPEO has some 300 PEO members, ranging from start-ups to large publicly held companies with years of success in the industry, as well as some 200 service provider members. PEOs provide payroll, benefits, and other HR services to small and mid-sized businesses. Approximately 250,000 businesses and more than 2.5 million people are part of PEO arrangements. For more information about NAPEO, please visit www.napeo.org.

SOURCE National Association of Professional Employer Organizations (NAPEO)

Florida Supreme Court Upholds Exclusive Remedy in Workers’ Compensation Case

http://upload.wikimedia.org/wikipedia/commons/b/ba/Florida_Supreme_Court_Seal_2014.png“The Florida Supreme Court issued a unanimous decision Thursday, December 4, in Leticia Morales v. Zenith Insurance Company, upholding the workers’ compensation system as the exclusive remedy for injured parties.”

Leticia Morales v. Zenith Insurance Company is one of three workers’ compensation challenges before the Florida Supreme Court. The others are Castellanos v. Next Door Company and Westphal v. St. Petersburg which have been featured in previous PEO Compass posts as we watch the case law battleground for the Constitutionality of the Florida Workers’ Compensation statutes.

Click here to read more…

OIR Issues Final Approval Order on NCCI’s Florida Workers Compensation Rate Filing

On August 22, 2014, the National Council on Compensation Insurance (NCCI) proposed an overall workers compensation rate level decrease of 2.5% in Florida effective January 1, 2015. On September 22, 2014, NCCI amended the filing proposing an overall rate level decrease of 3.3% to reflect a rule change announced by the Division of Workers Compensation effective January 1, 2015. On November 5, 2014, the Office of Insurance Regulation (OIR) issued an order denying the 3.3% decrease and requesting that NCCI make an amended filing for an overall workers compensation rate level decrease of 5.2% effective January 1, 2015. NCCI submitted its amended filing on November 11, 2014 and received the final approval order from the OIR today, November 12, 2014.

The revised overall workers compensation rate level decrease of 5.2% breaks down as follows:

Rate Table Data (downloadable rates) and an approval circular including the amended pages will be posted on www.ncci.com within the next couple of business days.

Meet 2014 40 Under 40 Honoree Bradley Isaacs

Congratulations to Bradley Isaacs for making the Orlando Business Journal’s 40 Under 40 List.  The annual awards honor Central Florida’s top up-and-comers and this year, the honorees are from a variety of industries ranging from law and finance to technology and tourism, and everything in between.  Bradley Isaacs is a partner at Risk Transfer Holdings LLC, which buys insurance, specializing in providing property and casualty insurance to the professional employer organization and temporary staffing industries. He’s also a co-founder and owner of Doggienation.com, the largest provider of dog sports apparel in the world, which has more than $1 million in sales.

Click here to read more…

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ProSight Specialty Binds First PEO Client for Risk Transfer

Risk Transfer is pleased to announce our 1st workers’ compensation bind order with ProSight Specialty Insurance (PSI) for a major PEO client.  Risk Transfer considers this a significant milestone with PSI; we look forward to delivering on PSI’s growth objectives with a value-driven approach to differentiation in the PEO niche, and creating and sustaining a multi-line PEO program that will deliver profitable results for ProSight.  Having successfully bound a Workers’ Compensation policy with PSI, Risk Transfer is now in the process of implementing general liability and auto liability products for PEO client companies.

To learn more about ProSight’s Best in Class offering for PEO’s, please visit ProSight’s website or click here.

Dino Fabrizio
Risk Transfer