Report: Large-Deductible Policies Among PEOs Are of Special Concern

A report by two groups of state regulators has sparked a debate on whether large-deductible policies held by professional employer organizations should be handled differently than other large-deductible policies. Large-deductible workers’ compensation insurance policies are a growing concern because of their potential contribution to carrier insolvencies. If an employer with a large-deductible policy can’t pay the deductible on its workers’ comp claims, responsibility for paying the full claim amount falls to the carrier. And that’s true whether the insured is a profe...