Why Most PEOs Say No to Trucking (and Which Ones Say Yes)

Got turned down by a PEO? That is not the end.

Many PEOs do not take trucking companies at all. Others take some kinds of trucking and not others. So if one PEO said no, it does not mean every PEO will. In our experience, most trucking companies that come to us after a "no" find a PEO that says yes.

Here is why PEOs say no, what they look at, and how to find the right one.

Why does a PEO say no?

When you join a PEO, your employees are usually covered under the PEO's workers' comp policy. That means the PEO is taking on your risk. Before it says yes, it looks closely at the kind of work your drivers do and the claims you have had.

The two reasons we see most often:

1. The type of hauling. Hazmat and tanker work is a common no. So are companies that run mostly owner-operators or 1099 drivers. Many PEOs only cover drivers who are on your payroll as employees, but some have other ways to handle contractor drivers.
2. Your claims history. A lot of claims, a few large ones, or claims that are still open can lead to a no. So can a high safety score (e-mod).

PEOs also look at how many drivers you have, how many miles they run and which states you run in. Each PEO has its own list of what it will and will not take.

What a "no" really means

A no from one PEO is that PEO's rule, not a grade on your company. The same papers that get a no from one PEO can get a yes from another.

For example, picture a fuel hauler with 25 trucks. One PEO says no because it does not take tanker work. A different PEO that does take tanker work looks at the same papers and says yes. Nothing about the company changed. It just went to the right PEO.

Before you look again, check your own setup

A few things can turn a maybe into a yes. Look at them before you apply anywhere:

• Open claims. Ask your workers' comp carrier for your loss runs. If an old claim is still open, ask if it can be closed.
• Job codes. Make sure each worker is in the right code. Office staff in a driver code can make you look riskier than you are.
• 1099 drivers. Know how many you use, and keep their contracts and insurance certificates on file.

Our workers' comp renewal checklist walks through what to gather.

How we find the PEO that says yes

Knowing which PEOs take which kinds of trucking is a big part of what we do. It works like a mortgage broker who knows which lender takes a self-employed buyer. You give us one set of papers. We take them only to PEOs that fit your kind of trucking, then show you the options side by side.

That matters most when your company does not fit the usual mold. We know which PEOs take tanker and hazmat work, and which ones have a way to handle owner-operators and 1099 drivers. That is hard to find out on your own, because most PEOs do not say it up front.

Here is what that means for you:

• A better chance of a yes. Your papers only go to PEOs that already take your kind of trucking.
• Less of your time. One set of papers instead of filling out forms for PEO after PEO.
• A clear price comparison. You see your options side by side, so you can pick the one that saves you the most and fits your drivers best.

And the review costs you nothing, because the PEO you choose pays us.

Why a PEO can be worth it for trucking

When you find the right fit, a PEO can help trucking companies in three big ways:

• Workers' comp. In a PEO, workers' comp is usually figured on each payroll. That usually means no big deposit and no surprise bill at audit.
• Driver benefits. A PEO can give a small fleet benefits more like a large carrier's. That helps you hire good drivers and keep them.
• Payroll and paperwork. Payroll in several states, new hire paperwork and HR rules are handled with you, so you have more time to run your trucks.

Sometimes what you have now is the right fit. If so, we will tell you that too.

Turned down before? Let's take another look.

Tell us what kind of trucking you do and what happened last time. We will tell you honestly whether there is a PEO that fits.

Start With a No-Cost Review of Your Current Setup or call (865) 876-7928.

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