For many business owners, securing affordable and comprehensive workers’ compensation and group health insurance can be a challenge. Traditional insurance markets may be costly, particularly for small and mid-sized businesses. One alternative that has gained popularity is partnering with a Professional Employer Organization (PEO).
A PEO is a company that provides human resources services, payroll processing, compliance assistance, and employee benefits—most notably, workers’ compensation and group health insurance. By pooling employees from multiple companies into one large group, a PEO can often negotiate better rates and offer more robust benefits than a business could secure on its own.
But is a PEO the right choice for your company? Below, we explore the benefits and drawbacks of partnering with a PEO and introduce an alternative option: BGES Group, specialists in workers’ compensation insurance.
10 Benefits of Partnering with a PEO
1. Lower Workers’ Compensation Costs
Because a PEO pools employees from multiple businesses, it can negotiate lower workers’ compensation insurance rates. Businesses that may struggle to secure coverage due to industry risk factors can often find affordable options through a PEO.
2. Access to Group Health Insurance Plans
Small businesses often face high premiums when purchasing health insurance. A PEO allows companies to participate in large-group health insurance plans, giving them access to better benefits at lower costs.
3. Simplified Payroll Processing
PEOs handle payroll processing, tax filings, and compliance, ensuring that employee wages, withholdings, and tax payments are handled accurately and on time.
4. HR Compliance Assistance
Employment laws and regulations are constantly changing. A PEO provides guidance on HR compliance, helping businesses avoid costly legal mistakes related to hiring, terminations, workplace safety, and employee benefits.
5. Reduced Administrative Burden
By outsourcing HR, payroll, and benefits administration to a PEO, business owners can focus on growing their company instead of managing time-consuming paperwork.
6. Workplace Safety Programs
PEOs provide workplace safety training, risk management services, and claims management to help reduce workplace injuries and improve safety compliance.
7. Employee Benefits and Retirement Plans
PEOs can offer 401(k) plans, dental and vision insurance, and other benefits that small businesses might not be able to afford independently. These benefits help attract and retain top talent.
8. Faster Claims Management
In the event of a workplace injury, PEOs handle workers’ compensation claims efficiently, ensuring employees receive benefits quickly while minimizing disruptions to the business.
9. Better Hiring and Onboarding Processes
PEOs provide hiring and onboarding support, including background checks, job descriptions, and compliance with labor laws. This helps businesses make better hiring decisions.
10. Scalability for Growth
A PEO makes it easier for businesses to scale, whether by hiring across multiple states, expanding benefits, or adjusting HR policies as the company grows.
5 Drawbacks of Being in a PEO
While there are many benefits to joining a PEO, there are also some potential downsides to consider.
1. Loss of Control Over HR and Benefits
When a company partners with a PEO, it co-employs its workforce with the PEO. This means that while business owners still have managerial control, certain HR decisions—such as benefit offerings—are influenced by the PEO.
2. Potential for Higher Costs Over Time
While PEOs can offer cost savings, service fees and administrative costs can add up, especially if a company has low workers’ compensation claims or access to affordable standalone insurance options.
3. One-Size-Fits-All Approach
PEOs provide standardized benefits packages, which may not always fit a company’s unique needs. Customization can be limited, particularly for businesses looking for specialized coverage.
4. Difficulty Leaving the PEO
Exiting a PEO arrangement can be complicated. Companies must transition payroll, benefits, and workers’ compensation policies back in-house or to another provider, which can be time-consuming and costly.
5. Limited Carrier Choices
Most PEOs work with a select group of insurance carriers. If a business prefers a specific insurance provider or has an existing relationship with one, it may not have the flexibility to keep that provider under a PEO model.
BGES Group: An Alternative for Workers’ Compensation & Group Health Coverage
If your business is considering a PEO but wants to explore other options for workers’ compensation and group health insurance, BGES Group can help.
Why Work with BGES Group?
BGES Group specializes in workers’ compensation insurance, serving businesses in New York, New Jersey, and Connecticut. Unlike a PEO, which requires businesses to co-employ their workforce, BGES Group works directly with business owners to secure customized insurance solutions.
Here’s why businesses turn to BGES Group:
✔ Specialized Expertise – BGES Group focuses solely on insurance, meaning you get personalized service from a team that understands your industry’s risks and challenges.
✔ More Carrier Options – Unlike PEOs, which limit you to their provider network, BGES Group shops the market to find the best coverage at the most competitive rates.
✔ Flexibility & Control – With BGES Group, you maintain full control over your business, including HR decisions, payroll, and employee benefits.
✔ No Hidden Fees – PEOs often charge administrative fees that can add up over time. BGES Group does not charge separate fees, you get transparent pricing with no surprises.
✔ Dedicated Support – When you work with BGES Group, you get direct access to experienced insurance professionals, including Gary Wallach, who can help you navigate workers’ comp and group health coverage options.
Need Workers’ Compensation or Group Health Insurance? Contact BGES Group Today!
If you’re a business owner looking for affordable and customized workers’ compensation or group health coverage, BGES Group is here to help.
📞 Call Gary Wallach at: 914-806-5853
📧 Email: bgesgroup@gmail.com
🌐 Visit: www.bgesgroup.com
Let BGES Group help you find the right insurance solution for your business—without the complications of a PEO.