We’ve said it before and we’ll say it again, PEO have their place in the insurance world. They keep doors open and allow businesses to keep running. But what does it say about the business itself?
A PEO is great when used the right way. They can get a company who’s suffered too many losses or a big one to stay in business and still comply with bid requirements.
As an agent, when I see a PEO set up my mind starts thinking. Why a PEO? How many losses have they had? If it wasn’t many, how BIG was the one? Have they weighed the cost of PEO admin vs. the savings of dividends, low mods, or credits applicable to their industry?
In South Florida, PEOs are sold on convenience but what ends up happening is you end up devaluing your business. This applies to those who have no reason to be in that environment but signed on the cause, well, the payroll person was convincing.
Being in a PEO without having the need for one is like having a nail in your tire and all you do is inflate it every morning. Sure, it’ll work, but it’s not the solution.
To learn more about how The Bunker can help you get out of the PEO enviornment, give us a call at 954-239-7346.