As Arborist and tree service companies annually top the nations list of highest work comp rates, business owners are rapidly discovering employee leasing services, also known as professional employer organization - or PEOs, for dramatic savings on workers' compensation insurance.
The stereotype regarding Arborist for many insurers over the years is a bunch a guys running around without an office- uninsured and working out of their trucks. The reality is, in many cases - that's true! But states and insurance companies make it almost impossible for arborist to get started legally and grow a thriving business.
For starters, there are few traditional insurance companies that provide workers' compensation for arborists. Those that will provide coverage, want only the very large, established companies with a great safety record. Wouldn't it be nice if we ALL got to cherry pick our customers! Until employee leasing services, smaller or new tree service employers had one option- the state work comp program. This meant filling out lots of paperwork and paying thousands of dollars up front just to get started. Then, because you have to use their services (since there are no other options) you're charged a premium for that as well. Who can afford that?
Arborist can save 15-40% on their work comp rates with employee leasing services and can start with as little as a few hundred dollars to $0 down, on a pay as you go plan. Plus, the employee leasing company will manage the employer's payroll, providing services from employee paychecks to depositing all the payroll tax deposits, even wage garnishments. And you'll never deal with audits, W-2's or government payroll reports again.
These services have been around for almost 30 years but have seen the most dramatic growth in the last decade as employers have grown more accustom to outsourcing unproductive and non-revenue generating work. The concept was simple and makes sense when you consider this. You started a business to sell a product or a service and hopefully generate a lot of revenue. Then you quickly discover the administrative side of running a business and having employees. Soon you realize the amount of time wasted dealing with employee related paperwork and management issues, taking you away from what your real expertise is. There's never been a better time to investigate the benefits a leasing company may have on your Arborist business. Reducing overhead costs without decreasing your services and giving you more time to focus through these difficult times, may just be your business life saver.