When a business must agree to pay higher rates for workers’ comp insurance due to trends in three-year rolling claims and payroll data, the situation is called “consent to rate.” In Florida as well as New Jersey, SourceOne Partners can provide alternative options that may be more budget-friendly.
Why Would a Business Need Consent to Rate?
Industries with high accident rates, such as tree trimmers and roofers, may feel forced into a consent to rate situation if there is an increase in workers’ comp claims. However, a professional employer organization (PEO) can provide additional options that may help the company save money. “Right now we’re working with a hotel that knew about PEOs, but didn’t feel like they had the time to explore further and went with a consent to rate Florida workers’ comp policy,” says Jeff Hecht, President of SourceOne Partners and a PEO expert. “With the right PEO, they may be able to get out of their contract and save money.”
Workers’ compensation rates are regulated by the state, and different types of businesses pay rates based on a number of factors, such as historical figures provided by insurance companies, the company’s own claims history, the industry and even job titles. Occasionally, a broker will lock companies into a consent to rate situation to obtain higher commissions. SourceOne Partners can help businesses find PEOs with agents who understand consent to rate and who understand that in the long-term, they could lose a client’s business by forcing them into consent to rate when it’s not necessary. “The right PEO broker is interested in a long-term relationship with its clients and won’t use the threat of consent to rate just to get higher commissions,” says Hecht.
Help with Consent to Rate in Florida and New Jersey
If your business is considering a consent to rate policy because you feel you are out of options, contact SourceOne Partners today. We will present you with quotes from multiple PEO companies and prepare a customized solution to fit the unique needs of your business. In addition to workers’ compensation, we can help you with payroll outsourcing, employee benefits administration, time and attendance and HR solutions. Call 561-674-0748 or contact us online to request a free workers’ comp evaluation.