CALABASAS, Calif., July 12, 2004 (PRIMEZONE) -- Promerica Group (www.4promerica.com), a PEO broker and a member of www.PEO7.com, today announced it has secured the commitment of a PEO that will offer PEO services including workers' compensation coverage to California employers. Workers' comp reached a critical point in 2003 and California Gov. Arnold Schwarzenegger passed legislation to streamline the California workers' compensation system. While the new legislation has not reduced the actual cost of workers' compensation policies, it has prompted several insurance companies to re-enter the California market. August entry of an A-rated company to the California market marks the first time an A-rated company re-enters the California market and reflects a business sentiment that the new legislation will bring stability to the chaotic workers' comp market.
In the past few years, the only source of workers' compensation insurance in California had become the Statefund of California which arbitrarily denied companies coverage. Absence of workers' compensation coverage in California has had an adverse effect on many small employers. Many companies simply had to close their doors because there was no workers' compensation insurance available. Others chose to operate the business without a policy. Some employers started packing to leave the state, before the state legislature took action. Many companies have turned to a PEO solution where the PEO becomes the employer of record and carries the workers' compensation policy mandated under the law.
About Promerica Group
Promerica group offers the services of many different PEOs to various client companies, in effect relieving the company of the workers' comp burden because in a PEO relationship it is the PEO who carries the workers' comp policy and not the client company, hence eliminating the need to procure a policy for the client company. Promerica Group has brought the most innovative solutions to the market and in the process avoided the certain bankruptcy and foreclosure of many companies.
About www.PEO7.com
www.PEO7.com is a portal for companies seeking the services of a PEO. www.PEO7.com has the largest PEO network, which constitute local and national players in the industry. Companies seeking the services of PEOs must fill out specific forms about the company and their workers' comp and benefit needs. www.PEO7.com through its fully automated portal connects the company to the most qualified PEO based on various parameters which include distance, specialty, workers' comp mod and history, type of business and other relevant factors.