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Workers' Compensation Q & A Print E-mail
Written by Tom Murphy   
Monday, 12 July 2010 10:42

Q:  If our practice uses a payroll company or Professional Employer Organization (PEO),

 can we carve out the workers compensation coverage to join a dividend program?


A:  Many medical practice administrators are unaware that most payroll companies and PEO's will allow them to carve out the workers compensation coverage in order to join a dividend program. The workers compensation coverage is not a priority for payroll companies and PEO's. They are usually willing to work with you in order to maintain your payroll and human resource portions of your practice.

      Moving into an independent workers compensation dividend program is very easy and it can be accomplished by using the payroll company or PEO to provide the payroll information directly to the workers compensation carrier. If you have a small premium (Less than $10K), you can join directly with the assistance of your independent agent with very little effort.

       The benefits of joining a dividend program are the potential yearly payout of up to 25% for small practices and up to 45% for large practices. In addition, the physician officers can choose to be exempt from the policy. Many PEO's include the officers as they become employees of the PEO. This is a large expense that can be avoided. As always, I recommend that you seek qualified, competent expert advice from an independent agent specializing in workers compensation insurance.    

Tom Murphy is a workers' compensation and medical malpractice insurance specialist agent with Danna-Gracey, Inc., an independent insurance agency based in downtown Delray Beach with a statewide team of specialists dedicated solely to insurance coverage placement for Florida's doctors. He can be reached (800) 966-2120 or  by e mail click here.

Last Updated on Sunday, 18 July 2010 15:49

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