Workers Compensation When Outsourcing HR Functions

If your company has started discussions on the option of outsourcing human resources and related tasks, then there are two choices available. One utilizes a model called a Professional Employer Organization (PEO), and the other falls under an Administrative Services Organization (ASO). Both of these can free up company resources and provide dedicated HR responsibilities such as benefits, payroll and hiring. However, there are some key differences that may factor into the decision process.

Defining Co-Employment

With a PEO, the company enters into an agreement that essentially binds the two entities together under what is known as co-employment. This arrangement allows the PEO to take on more risk and responsibility. Under an ASO, the company is still considered the employer of record.

Workers Compensation Under ASO

Because of the differences regarding the co-employment structure, ASO workers comp insurance functions differently as well. When using an ASO the coverage is still provided by the company. As explained by, this presents a distinctive opportunity when it comes to worker’s compensation. Premiums can be paid out during smaller timeframes such as a payroll period or a single month. There are no annual estimates or audits needed to make adjustments. This can provide greater flexibility and require fewer upfront costs than the traditional market method.

Having Proper Coverage for Home Healthcare Agencies

Home healthcare agencies that provide services to individuals within their home need to have home healthcare insurance. Here are a few reasons why this keeps both the workers and the individuals who use the services safely.

Home Healthcare Coverage Protects Workers

Workers who visit client homes to provide services could run into an incident that causes them injury. By having home health insurance, the company can provide worker’s compensation to the home healthcare worker. This can save the company money rather than paying out of pocket, according to

The Right Coverage Keeps the Agency From Losing Money

A home healthcare agency could get sued by a family if a worker is being accused of abuse or some other problem. Not having insurance coverage means the agency would have to pay out of pocket, and depending on how much the lawsuit is for, this could cost a lot of money. Having coverage offers a form of protection and can keep the agency in the business, rather than being forced to shut down.
Home healthcare insurance is important for any company that specializes in helping clients in their homes. It can protect the company against loss of money related to worker’s compensation and can help the company stay protected financially if someone tries to sue them.

Job-Related Injuries and Coverage for Potential Hazards

Nursing homes provide comfortable quarters to residents in an attempt to help them transition from their homes to a facility that offers many exciting lifestyle opportunities. It is the job of the employees to make sure that residents are treated well, given proper treatment for any ailments, and to always feel safe, knowing that the people assigned to work with and watch over them are both caring and qualified.

Healthcare workers generally seek a position in a nursing home because they like being given the chance to enrich the lives of others. They are quite aware that the job may require long hours, and they need to be strong enough to assist patients with daily rituals, a task that can be physically draining and even lead to injuries. Because their employees face unique risks on the job regarding their personal safety and health, owners carry workers compensation insurance to address work-related injuries.

The risk of injury is a daily concern

It’s known that nursing home attendants have a higher rate of injuries than a lot of other professions due to the strenuous nature of the work they perform. Staff members are exposed to a variety of potentially serious hazards including overexertion and stress, unhygienic conditions, bloodborne pathogens, possible needle sticks and even latex sensitivity.

Healthcare workers may also encounter many different unpredictable hazards, anything from tripping or falling over objects or articles left in walkways, chemicals or other toxins associated with the operations of the facility, and injuries from sharp or heavy objects.

The list of concerns is long, and any time away from work to heal or recover from injury can be an added burden to the employer. This makes filing claims, getting medical attention, and taking steps towards a speedy recovery essential, especially for the mental health of the victim.

The rate of turnover can be very high among healthcare workers, and attracting workers and retaining employees is a high priority for most healthcare agencies, which means that providing a healthy workplace in a low-stress environment is an important part of any retention strategy. Industry leaders have the expertise to provide the best workers compensation packages on the market today. Make sure that your client receives the best information about the types of coverage essential to their success.