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Risk Management & Compliance

How can a PEO Improve a Company’s Risk Management Program Affordably?

Greg Andress
by Greg Andress on February 17, 2016

 

Risk ManagementWorkplace safety is too important for employers to overlook.

With nearly 3 million nonfatal workplace injuries and illnesses reported each year by private employers, the costs are nearly $250 billion annually, in addition to the pain and suffering experienced by the workers and their families.When safety breaches lead to injuries and insurance claims, the costs your business may incur include:

  • Increases in Workers’ Compensation premiums
  • Loss of productivity
  • Overtime paid to other workers
  • Damage to equipment
  • Disruption of the team

Proactive approaches to fostering a safer work environment can make a real difference from a cost point of view as well as an employee safety and satisfaction perspective.

Studies by insurance carriers indicate that investment in proactive workplace safety programs can yield a return on investment of approximately $6.15 for every $1 spent.

In this blog I’ll explain the ways that a PEO can support your risk management program, or even help you establish one for the first time. PEOs like FrankCrum provide the knowledgeable people, tools and resources to help you incorporate a customized, proactive approach to prevent workplace accidents.

Risk Management Services are Provided at No Charge

PEO’s have an inherent stake in the safe operations of clients since PEO’s provide workers’ compensation insurance.  A workers’ comp claim has a negative financial impact on both the client and on the PEO.

The very best way to keep claims costs down is to avoid accidents all together. That’s why PEO’s partner with clients to provide resources to establish safe work practices, and in most cases those resources are provided at no cost to the client.

Experienced Risk Management Specialists

It starts with an experienced consultant who will visit your site(s) and provide you opportunities for improvement. They key is developing an active, specific program that is woven into your operational culture.  

A local ice cream parlor has different needs than a multi-state construction contractor, so the approach should be customized and designed for your success.

Workplace Reviews

Having periodic workplace consultations enables a full review of your facilities and jobsites as well as audits of current safety programs.

This is an effective approach to identify problems and hazards that could result in accidents or injuries. Risk management professionals should work with you to not just find problems, but to offer solutions.

Professional Know-How

PEOs become an extension of your company, to learn about your products, services, customers, culture, and needs. Then they direct you to the best resources ranging from OSHA’s most recent compliance reporting guidelines, to a customized training template or technical resources.

Many resources are designed to be shared with employees at any level to assist you with employee safety training. Chances are, if you can think of it, a PEO will have the answers to your risk management questions.

Specialized Services Tailored to You

There are times when specialized resources are needed. A PEO works closely with a network of niche providers in order to address virtually any unique risk or exposure situation.

There may be costs associated with highly specialized services, especially those not performed directly by the PEO staff.   

Protecting Your Bottom Line

When business leaders recognize that a proactive approach to managing risk can offer big rewards to employees and the business, risk management programs become a big priority. Regardless of where you are in your risk management practices, a PEO is here to help.

A Business Owner's Guide to HR

Greg Andress
ABOUT THE AUTHOR
Greg Andress

Greg Andress, Director of Risk Management Services for Frank Winston Crum Insurance, is a 30+ veteran of the insurance industry who has spent more than 20 years in risk management/loss control. With clients in many industries, Greg has developed proactive loss control programs, training materials and technical bulletins; and delivered training for hundreds of clients nationwide to help them understand how they can identify and control their total cost of loss.