Huge Opportunity For Florida Work Comp Insurance Agents
It’s no secret that Florida is a booming economy these days. With all the people and businesses moving here, it’s also no surprise that construction companies are extremely busy. The construction industry in Florida is growing rapidly with contractors moving here from other states, new contractors starting up, and current construction companies growing as fast as the labor market allows them to grow. From flat concrete to high-rise condos, from block masons to finish carpenters, from roofers to plumbers, as different as these companies all are, they have one thing in common – they all need workers’ compensation insurance. Businesses have two options, either obtain a traditional work comp policy or contract with a PEO for coverage.
A traditional workers compensation insurance policy is a very comfortable solution for a traditional insurance agent to quote and bind with their customer. But, that only meets part of their client’s needs. Many times these business owners also need a payroll solution or may prefer a pay-as-you-go workers’ compensation option. In Florida, when they search for a payroll solution or especially a pay-as-you-go option, there is a great risk the quoting payroll provider will try to also sell them workers’ compensation. Including a PEO option will decrease the chance your prospect will go elsewhere for another solution. P&C agents have long competed against the PEO (Professional Employer Organization) industry due to this very reason. However, as the PEO industry has grown and matured, many P&C agents have grown comfortable with a PEO option and are now also including a PEO option in their quoting process.
Providing a traditional quote and a PEO quote is a complete proposal – saving the business owner time and money. PEO’s offer other services the business owner may need or want that could also cause competition if they went traditional routes, specifically health insurance, general liability insurance, or a 401k option. If you don’t have a solution or partner with these solutions, a PEO can offer them without competing against you.
In addition to providing appropriate coverage at the right price for insurance agents’ clients, agents have a business to run and commissions are important. A PEO’s compensation plan often results in greater commission paid to an agent while resulting in more services provided at a reduced cost to the business owner. PEO’s pay the agent commission either directly or through an agency like Bridgely Key Options who has special arrangements with PEOs similar to an MGA. Typically commissions are monthly payments based on the previous month’s premium collected. An agents’ residual PEO income often results in greater total commissions than otherwise earned from a traditional insurance policy alone.
For agents who don’t have a PEO relationship yet, getting started with a PEO partner or obtaining a quote could be time-consuming if they had to call all the various PEO’s to learn their risk appetite, underwriting procedures, pricing model, and more. Fortunately, there is a better solution. Using Bridgely Key Options, a PEO broker agency, instantly provides you with the reputation, experience, and access to the top PEO’s in Florida as well as the country. Other benefits of using Bridgely Key Options as your PEO partner include PEO coaching, back-office support assistance, and more.
If you are interested in learning more about PEO opportunities or if you would like to expand your current operations to include more PEO options, please call us today! 855-899-1589 or locally 941-896-4880.