Frequently
Asked Questions,
And
my personal responses. These are just my
opinions, based on my experiences. You
are advised to do your own research on these matters. I’m not an employment, financial, or legal
expert, nor do I claim to understand the inner machinations
of the WCIRB. You should do your own
work. I am including references,
sections, and Department of Insurance and WCIRB names and numbers for
corroboration.
What are the Advantages of BBSI?
- Personal CEO Attention:
The CEO of BBSI, Bill Sherertz, personally reviews each potential
client. If the prospect becomes a
client, he also oversees each claim, from the day reported, until closed.
- Rates:
Since they are a self insured entity, they can set your workers’ compensation
rates where it makes sense, depending on your individual loss history, not
subject to the rates set in
- Claims Management: They can afford to provide very
competitive rates because they choose only the best clients, and manage
their claims by:
Each
claim is reported to the CEO. He reviews
each one. A claim assistance person is
assigned from the servicing BBS branch to contact the insured immediately, and
make contact with the injured worker, where appropriate.
BBSI
personnel assure that the injured employee is treated immediately and
appropriately, and that they have the availability to return to work, either
full time, or modified duty, as soon as possible. Over 95% of all injured employees are back to
work, full or modified, or closed within 3 days.
·
HCO Control of Treating
Doctor A doctor network allows for six months of control for the treating
doctor, versus the 30 days available with most insurance companies. This control has helped to lower the
incidence of litigation for BBSI’s, clients down to almost nothing.
·
Employment Regulatory Assistance:
BBSI assumes responsibility for most state and federal employment
regulatory requirements, except Cal OSHA – although they will assist with OSHA. OSHA compliance remains the responsibility of
the client. Other State and Federal /
IRS tax issues become BBSI’s responsibility.
·
Freedom: to do what you do best.
BBSI performs most of the employment duties that take up so much of your
time, freeing you to concentrate on what you do best.
·
Human Resource Assistance: BBSI
offers a complete range of H. R. services.
You may pick and choose what you want, or not avail yourself of the
services at all, if that is your decision.
·
401K Availability – You may use BBSI’s or not use them,
again, your decision.
·
Return to Work / Modified Duty
Assistance: BBSI will actively assist you with and help
implement and maintain your return to work program. This results in significant claims savings by
avoiding indemnity (lost time), injuries, further assisting you in lowering
your claims’ expense, and subsequent rates at renewal.
·
No Deposit, depending on credit status
·
No Monthly or Annual Audits
·
No Penalty: if you want to leave, just give them 30
days written notice.
Can
my rates go up during the year? Is there
a possible additional premium charge?
On
one hand, the answer is no, on another, yes, according to their contract.
As
for no, BBSI’s program is a guaranteed cost program. Rates are set for one
year. There is no built in increase in
premium, to be paid in subsequent years, as in the case of loss sensitive plans
such as captives, retros, deductibles, etc.
The intent is to have set rates for a year. Your workers’ compensation portion of your
charges will vary with your payroll, of course, but not based on losses.
As
for yes, their contract does gives them, (and you), the ability, and right, to
cancel (each other), without penalty, with 30 days written notice. The contract gives them the right to increase,
or decrease, your rates, mid-term, for cause.
In reality, they don’t raise rates mid-term. Rather, they cancel the customer for whatever
cause has occurred to change the nature of the relationship.
If
I can’t be charged more, during the year, because of my claims for that year,
can they go down if I have a good year?
Again,
the program is guaranteed cost. As
noted, BBSI has the right to lower your rates during the year, but the intent
is to keep the quoted rates for a year. However, BBSI will offer you a loss
incentive, and you can receive a
significant portion of your premium back, in the form of this incentive, at
the end of your year, after all claims are closed. Your renewal rates, if renewal is offered,
will also reflect your previous year’s loss history. The incentive is guaranteed, in the
contract. Unlike an experience mod,
wherein you have to wait a year to get any benefit from low losses, with BBSI,
you can reap the benefit, immediately, if appropriate, upon renewal.
Will
I lose Control of My Employees?
You will still be
responsible for all hiring, firing, and supervision of your employees, as well
as OSHA compliance. You still own your
business. BBSI only takes co-employment
responsibility for your aforementioned state and federal responsibilities.
Your employees
know for whom they work. They know who owns the business. Employees care about their check being on
time, and being correct. They want their
name on the check. Whether your name,
or, in this case BBSI’s, appears on the check is not the issue. Being paid
correctly, and on time, is the issue.
Your employees know who you are. If they don’t you have other issues to
worry about than workers’ compensation.
Will
I lose my Mod?
When your initial
rates are determined by BBSI, for your first year with them, your current mod
will be part of the rating process.
After that, as long as you are with BBS, you will not have a published mod. There will be nothing turned into the WCIRB
for your mod. As long as you are with
BBSI, your mod will cease to exist.
If
I leave BBSI, for whatever reason, will I have to
start my mod over with a mod of 100%?
A
Client Company leaving the Co-Employment Agreement of the Self-Insured PEO will
be afforded the use of the California Workers’ Compensation Uniform Statistical
Reporting Plan, Supplement, Rules and Interpretations, Page 29, Self Insured
Data For Experience Rating Purposes, to have their losses and pay roll presented
to the WCIRB for review, and if accepted, have their experience modifier
calculated, including their time as self insured. It does not require
that a separate policy is written with a unique policy number as suggested by a
leasing company arrangement.
Confirmation:
The WCIRB
rules, concerning self insured entities in California, as stated in the
California Workers’ Compensation Experience Rating Plan – 1995, page 4, Section
III, Paragraph 5, states “The experience of self- insured’s may be accepted by
the bureau provided the experience on self-insured operations is submitted on
an approved form giving definite information with respect to payroll and
losses. Such statement shall be secured,
verified and submitted by an interested insurer and supported by affidavit of
the employer.”
This ruling is
repeated in the “
employer was
self-insured may be utilized in computing an experience modification… the data
submitted is subject to all rules of the Experience Rating Plan and the California
Workers’ compensation Uniform statistical reporting Plan – 1995 (USRP)”
The CEO
of BBSI has stated that BBSI will provide this required claims and pay roll
information, and an affidavit of authenticity, if a client and BBSI go their
separate ways. The ex-client may then
provide this information to their new insurance carrier, who may then submit it
to the WCIRB. The WCIRB may then use
that information in the promulgation of a new mod. That means that one’s
history, while with BBSI, may be included in the promulgation of their mod,
after leaving BBSI.
These rulings provide a method for promulgation of the experience
modifier for previously self-insured entities, insured under companies such as
BBSI. The rule facilitates the use of
losses incurred while “self-insured”.
Every non-self-insured PEO in
For confirmation:
- Steven Egly – WCIRB – 888-229-2472 – Supervisor of Self Insured’s - He
will verify that the above rules apply to all self insured’s in
- Mark Johnson – 916-483-3392
-Department of Insurance
– oversees all self insured’s in California – will confirm that BBSI is
self insured, and that they fall under all the rules for self insured’s in
California. Also, that BBSI falls
under the authority of the WCIRB for modification purposes.
- Nick Zagone – WCIRB Customer Service –
415- 778-7159 - will
confirm the use of previous BBSI experience, in mod promulgation, because
of BBSI’s self-insured status, after leaving BBSI.
- Michael Vail – WCIRB Public Ombudsman
- 415-778-7159 – will
confirm that the Unit Statistical Reporting Rules Supplement, page 29,
also applies to all self insured’s in
Will
I get Loss Control assistance?
Yes,
as much as you need, with no additional charges, regardless of how much, and
how often, you need it. BBSI Loss
Control personnel will assist you with your IIPP; attend safety meetings, etc.,
as needed.
Why
are my rates Low?
Your
rates are promulgated by the CEO, based on your experience, mod, BBSI
interviews and inspections. BBSI’s clients’
claims experience is excellent (HCO /
close, immediate claims attention / on going, “joined at the hip” claims
attention until closed, or back to work, full time or modified / Return to work
program, etc. This provides for a
competitive response from BBSI.
How
financially secure is BBSI?
- Secure enough to the only PEO in
- Secure enough to be publicly traded on
the NASDAQ.
- Secure enough to have been in business
since 1951
- 47 Offices In ten states.
- Financials on line NASDAQ symbol: BBSI
www.barrettbusiness.com
www.nasdaq.com