Starting a business from an idea can be not only financially burdensome but also emotionally and psychologically taxing. You worry if there will be acceptance of your product, outshining competitors, shielding yourselves from copycats, breaking even, navigating risk management, and other success markers. Working with a PEO can be a strategic partnership that helps you with all of that, and more. Keep reading…
HR is yet another avenue of the operational risks your business must work around. Human resource risks include high employee turnover, employee underperformance, and workers being injured in the course of duty.
Practical and financial challenges of navigating risks around employee retention, compensation, and unemployment claims can derail your progress. Practical since your business offer/expertise may be outside HR management and financial because managing HR aspects and risks requires finances.
What is Risk Management?
In business, it is inevitable that things will go wrong; what sets you apart when they do, is how prepared you are to confront unpleasant situations. Risk management is about anticipating the challenges and carefully developing means of avoiding or mitigating their impact on your business.
Managing risks is about being proactive concerning what can go wrong in the course of doing business instead of scrambling for a solution when things go wrong.
A proper risk management plan saves you money, reinforces trust, respect, and a positive brand image among your competitors and your target customers. A risk management plan is a documented actionable strategy that assesses the potential for risks and –
- Identifies every and any possible risks that may occur in the process of conducting your business.
- Studies the probability of the occurrence of risks and their likely financial impact
- Determines the likely frequency of the occurrence of risks and calculates their financial costs
- Designs approach to mitigate the impact.
- Outlines organizational improvement measures to monitor identified risk areas, document emerging risk areas, ways of responding to threats, and efficiency of the responses.
Read: Why You Should Outsource Payroll For Your Growing Business
How Can A PEO Support Your Risk Management Efforts?
Like we stated earlier, to succeed in business, you need all-round expertise, even in aspects outside your core mandate or service offering. For this reason, you should consider integrating a partnership with a PEO as part of your risk management efforts.
PEOs understand corporate risks and have experience in designing strategies to prevent, mitigate, or respond to eventualities in your business. As a co-employer, PEOs share your risk burden to a contractual degree, which frees you to focus on the core aspects of your business. The health and safety of your employees are one of the high-risk areas that should concern your business. The law requires every employer to have in place compensation programs for employee injuries.
A PEO can provide Workers Compensation Solutions customized to your business size and needs.
Some of the risk management scenarios we cover with our clients are:
Workers Compensation– Secure comprehensive coverage for your employees. We have a pay-as-you-go model that is cash-flow friendly.
Safety and Compliance – You’re required to be compliant with OSHA standards, and have measures to prevent accidents and injuries on the job. We provide claims assistance and HR compliance support for all industries.
Employer Practices Liability (EPLI)– You need to protect yourself from lawsuits concerning wrongful termination, discrimination, and sexual harassment.
General Liability : Covers claims associated with injuries occurring during normal business operations, with the exclusion of employee injuries claims.
Professional Liability: If you are in the business of giving advice such as lawyers, accountants, and physicians, you may be vulnerable to malpractice, misrepresentation, or negligence suits and claims. A professional liability or errors and omissions coverage protects you in such situations.
Business Automobile: Is useful for covering employees who use the company cars for work-related uses.
Business Property: Is protection for your business assets, including equipment, records, and buildings.
Contact MartinoWest and find out how we can help with your risk management.
Why Is It Important to Work with a PEO?
- A PEO will carry out safety assessments of your staff and develop and monitor the implementation of safety programs suitable for your business.
- The PEO is in a competitive position to offer discounted insurance premiums even with an increasing labor force.
- As far as capacity is concerned, PEOs can investigate, highlight, and prosecute fraudulent claims and protect your business during audits.
- You get to fulfill OSHA and other government safety requirements.
- Premium payments are integrated into the payroll process fulfilling statutory HR requirements
What are the Benefits of Engaging A PEO in Your Risk Management?
- PEO work with multiple agencies and employees, and therefore enjoy economies of scales in their insurance packages
- PEOs have extensive experience in the insurance industry and can offer comprehensive coverage at competitive rates.
- Workers’ compensation insurance companies require upfront payments, but working with a PEO enables you to have flexible payment plans.
- PEOs assume the responsibility to investigate and administer claims.
Read: https://martinowest.com/2021/10/28/how-can-a-peo-en…agement-capacity Pros and Cons of Professional Employer Organizations
Have more questions, thoughts, or just want to see what we can do for you? Reach out anytime!