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Anybody with information on these guys please share. They are offering a rate out of this world for landscapers. Any ideas on how to compete please post.

Would FirstComp Compete?

I am a PEO Broker and I am familiar with BBSI. You are correct they can offer some out of this world rates. Not exactly sure how they do it but they can offer some extremely low rates. Last time I ran across them they offered a client we were competing for a trucking rate in CA of around $8 per hundred. Needless to say I lost that battle.

I do not know of any one that can compete with them, PEO world included.

BBSI is self-insured up to $1MM per occurrence, with an unknown reinsured xs limit. I don't know where their reinsurance is placed, but it is likely Lloyd's who is more apt to issue coverage without the underwriting limitations with which AIG or ACE (the only other two underwriters willing to write PEOs in the US) encumber their client. That's why many other PEOs can not compete effectively; they have they have to succumb to egregious underwriting limitations placed upon them by their insurers/reinsurers. Of course, in defense of underwriters, the PEO industry has left many high and dry when the PEO goes broke, or the PEO leaves the insurers subject to otherwise unacceptable hazards due to unprofessional underwriting policies. As a self-insured, BBSI can price their work comp component any way they like and pass it through to their co-employers as fees. Plus, they have interesting refund policy for clients with excellent work comp experience under their plan.

Barrett Business Services or (BBSI) is a Self-Insured Professional Employers Organization that has been in business since 1951, is publicly traded on the nasdaq under the symbol BBSI and does roughly $1.3BB in revenues annually. BBSI is Self-Insured up to $5MM per occurance, with excess insurance from ACE at $5MM to $15MM.

The reason that you will see such competitive rates in California is due to BBSI's Self-Insured status. These rates are not available to every account as BBSI has a qualification process including a stringent underwriting process along with an in person risk analysis. However, for those accounts who do qualify, they enjoy the cost savings along with the ability to receive an additional 1/3 of their premium back annually in a safety incentive (minus the cost of annual claims). This safety incentive will not adversely affect your commission.

Along with cost efficient rates, BBSI provides expertise consulting in the form of Human Resource Management, Safety and Risk Consulting, Payroll Processing, Benefits (optional) and Aggressive Claims Management. BBSI works in conjunction with the broker community with a competitive commission structure.

If you are interested in becoming an appointed Producer with BBSI, please contact us and we'll be happy to meet with you on this subject and give you an in-depth illustration of how BBSI operates.

Rob Comeau
Business Development Manager
Barrett Business Services Incorporated
Office: (949) 255-5322 Ext: 111 Cell: (949) 510-1126 Fax: (949) 255-5332
http://www.barrettbusiness.com Rob.Comeau@bbsihq.com