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Have a payroll company based in SE with multi-state clients and doing about $20MM in gross wages. Trying to find a way to offer work comp to all clients by payroll deduction payment to avoid downpayment and financing. There are various classes. Need help in finding market that can put this type of package together.

Thanks

If I read this correctly, it sounds like your client is trying to make the employee pay for workers comp. I believe that's illegal. The insured is responsible for paying the W/C premium and cannot pass along the costs to the employee.

Not at all, the deduction would come out of the employer's account based on the weekly/bi-monthly wages. The employees will not see naything different.

Thanks for the clarification.

Is this "payroll compay" a PEO by chance?

No it is not.

Need some clarification then. Is the w/c coverage in the name of the payroll company, and their clients are covered under it? Or are there separate w/c policies for each client.

There are payroll companies that offer this service in California. They call it an ASO (Administrative Service Offering) and it basically functions as a PEO but without an employee leasing agreement. Each employer gets their own policy, X mod, etc and their premiums are swept with the payroll. I believe they provide quotes for each individual company through various carriers, they do not have one carrier that writes all of the companies. I hope that helps.

I work for one of those said payroll companies/ASO. What is the nature of their operation, and what states? We have a variety of multi-state carriers but it all depends on the risks operations.

Yes, I guess you can consider an ASO arrangement. Primary states are SE, but include TX, CA, IL, MA, UT,... Classes vary from hotel, landscaping, school,,trucking, rehab facility,...

Just trying to find a market that will do this................thanks

All 1 client/insured (like a holding company) or multiple clients in different industries? I am confused a little bit.

We can do all of those except trucking (very limited and not on a per pay period basis...only direct bill).

..

If this is an ASO, then there will be separate policies for each insured.

Having worked as a w/c underwriter, I don't know of any company that would be willing to provide the payment terms you're looking for.

You're still looking at the insured's having to pay a deposit (normally, at least 10%) and either on monthly installments or monthly payroll reporting. Carrier accounting systems aren't set up for weekly or bi-weekly reporting.

Then I must assume either some of these larger payroll compnaies that do offer w/c that they either are financing it themselves or due to thier size that the carrier has agreed to be paid as the payroll is processed. I agree that there will be a separate policy for each client, but looking for a carrier to place the payables under the payroll company and accept to be paid as payroll is processed. I do not see why the carrier would not jump on this as it brings in a lot of business, they still have control over what they underwrite and payment is assured and no need for the costly post audits? Anyone have a solution to what carrier or MGA that could put something like this together? Thanks again for all your input.

One of our competitors provides ASO services with all of the carriers they write with. I am not sure if they have a special agreement with the carriers or if they just finance it themselves.

We are an MGA/Wholesaler with access to admitted A-rated carriers nationwide and may be able to help you. We have carrier that writes all types of businesses. We offer standard markets programs as well as hard to place specialty exposures. Our typically turn around time is 24-48 with a complete submission. We sell the value of our service along with our benefits. Customer benefits include cost reduction through claims management and our exclusive UPAY-As-You-Go program. With UPAY-As-You-Go, premium is based on actual payroll, not estimates, eliminating annual premium down payments. We offer a quick quote service online for select industries at www.UnisourcePA.com. We pride ourselves by thinking outside the box and utilizing technology. We have fast turnaround, generally 24-48 hours with a complete submission. Agencies can become appointed right on our website and start submitting business right away. If you have any questions you can contact me at 678-294-5459.

Andy Kohler
Unisource Program Administrators
Andy.Kohler@UnisourcePA.com