Workers’ compensation is something almost all Minnesota employers must provide their employees. Most small businesses do not know how to find a good deal on workers’ compensation services, nor have the expertise to handle claims when they happen.
Why not turn to NetPEO instead? Our Minnesota PEO workers’ compensation services help businesses across all sectors and sizes meet their legal requirements, protect their workers, and get an excellent deal on workers’ compensation insurance.
PEOs vs Outsourcing and In-house Hiring
If you’re a small business owner, you probably can’t afford to pay the full salary of an in-house HR professional, nor have the workload to justify the price. But you need HR advice now. Outsourcing is an option, but it has some disadvantages.
Outsourcing your HR removes a level of control from your business. You have to comply with the rules of the outsourcing company. Asking for additional services could get expensive, and you still have the workload issue.
A PEO cuts through both problems. When you enter a co-employment agreement with a PEO, you have the power over what HR and payroll tasks they’ll perform, and you don’t have to worry about filling their time.
PEOs give Minnesota Businesses Leverage for Benefits
The reason you don’t have to worry about giving them enough work is because PEOs work for many companies at the same time. This may sound like a disadvantage, but it leads to one of the greatest benefits of a PEO.
Co-employment lets your PEO add your employees to the employees of all their client companies in a large block. With that, they can go to benefit providers like workers’ compensation insurers and negotiate rates and better benefits.
Companies with more workers can get better deals on attractive benefit packages. Thus, working with a PEO lets you offer incredibly good benefits for the size of your business. This will help you attract top talent as you continue to grow.
Workers’ Comp Is Required
However, unlike many other benefits, workers’ compensation is a required benefit if you have an employee. In Minnesota, the only exceptions are if you’re a sole proprietor, a partner, or everyone is an immediate family member.
Workers’ compensation gives employees a route to compensation for workplace accidents and illnesses without taking you to court. Getting sued for an employee’s injury is incredibly expensive. Many businesses who get sued for employee injuries don’t survive unless they can afford to self-insure.
Also, workers’ compensation also protects you. If you get injured on the job and you have it, you also may seek compensation through the system, even as a business owner. So why not protect yourself by using our workers’ compensation services?
What Does Workers’ Compensation Provide?
There are four core benefits in most workers’ compensation insurance policies. According to the Minnesota Department of Labor and Industry, there are three kinds of benefits workers can receive:
- Wage-loss benefits, which include payments for disability
- Medical benefits to pay for treating the illness or injury
- Vocational rehabilitation benefits if you cannot work the same job you could before, but you’re still able to work.
Your workers’ compensation insurance may also have death and burial benefits for workers who die on the job. This is a serious risk in some injuries, and having coverage could help you if you’re approached with a wrongful death lawsuit.
When you contact NetPEO, one of the first things we do is assess your HR challenges both now and what you might face in the future. This lets us select the best PEOs from our network to handle your HR tasks.
What Other Tasks Can My PEO Perform For Me?
You can get services à la carte or get complete HR and payroll coverage for your business, whether you have just a single employee or over 5,000. Businesses hire PEOs for many reasons, including:
- Payroll administration
- Benefits administration
- Regulatory compliance
- Policy creation
- Onboarding and recruitment
- Risk management
Along with these services, NetPEO also offers a web portal for employees to check their vacation time, benefits, and ask our team questions related to HR and payroll. They can get the answers they need without interrupting your time, so you can focus on what’s important for your business.
What Happens If I’m Caught Without Workers’ Compensation?
Companies without workers’ compensation coverage are open to liability when workers get injured on the job. Your business can get sued and you can lose a lot of money paying for your worker’s care and legal fees.
That’s not the only problem. You’ll also face the wrath of regulators who require coverage. The penalties for not having workers’ compensation insurance in Minnesota are not cheap. You may be ordered to purchase insurance and pay a penalty of up to $1000 per employee per week that they weren’t insured.
If you lose your case, the judge may order a payout from the Special Compensation Fund to pay the employee. The court will make you pay that money back to the fund, plus a penalty of 65% of those benefits. It is far cheaper to carry insurance than face all these penalties!
Protect Your Minnesota Business and Employees with NetPEO
With so many positives for getting workers’ compensation benefits and so many negatives, why wouldn’t you get it for your business? But before you dive into the insurance market on your own, give NetPEO a call first.
We’ll introduce you to PEOs in your industry and region who can help you with workers’ compensation insurance for your Minnesota business. You’ll get better rates and access to HR and payroll expertise that’s hard to get on your own. Contact us today for a free quote.