Why is workers compensation so expensive for owners/operators of assisted living facilities?
Due to the high-risk associated with owning and operating an assisted living facility, senior care center, retirement home, or nursing home, such organizations are classified within high risk workers compensation class codes – these high risk codes can demolish an organization’s cash flow.
Owning a high risk business sometimes results in rates as much as 300% higher than a business that is not categorized as “high risk.” Many traditional insurance companies require 50% down from high risk organizations, which can also hurt assisted living businesses financially.
Is there an alternative to such high rates?
Owners/Operators of assisted living facilities can purchase a stand-alone policy on their own, which is a pliable option for large businesses – but is not always the best option for small to medium-sized businesses. Smaller businesses are not always approved, due to the risk, number of years in business, payroll size and number of employees.
PEOs offer every advantage when it comes to minimizing your cost of workers comp- for both large and small companies. For starters, there are no deposits or audits with convenient Pay-as-you-Go policies. You’ll see an immediate surge in your cash flow since your premium is based on actual wages during that pay period. Lower costs translate to more competitive bids on assisted living housing and services, and ultimately, more profit to infuse your bottom line.
PEO Advantage finds you the ideal PEO partner—one who’s already licensed with established workers compensation policies, so that you can add employees and provide proof of insurance immediately upon initiating a co-employment contract. With shared responsibilities, and the strength of a PEO behind your organization, those high-risk workers comp class codes no longer have a negative impact of your insurability or costs.
PEO Advantage is helping assisted living facilities (including senior care, retirement, and nursing homes) find better insurance options through a PEO. Contact us today and we will begin working on a quote for your organization.