How does the PEO/co-employment services model impact workers’ compensation?
In addition to Large Group Medical Insurance Plans, the co-employment services model allows for worksite employees to be included in insurance plans like Group Workers’ Compensation Insurance. It can be more difficult for a small- or medium-sized business to access cost-effective workers’ compensation insurance without the buying power of a well-managed larger group, which spreads the risk over a larger pool. Additionally, the co-employment relationship requires the PEO to share responsibility for this risk in partnership with the client. The HRO model cannot share this risk since there is no employment relationship and therefore no legal basis for providing coverage to the employees. Well-managed PEOs like Oasis Outsourcing also provide support to reduce financial and legal exposure, including back-to-work and worksite employee safety training programs.
