Why Choose a PEO for Workers' Compensation Insurance

Of course, small business owners never want an employee to get hurt on the job. Still, accidents and illnesses sometimes do happen at work.  

That’s why you need workers’ compensation insurance. It covers an injured worker’s medical expenses, lost income and disability benefits, and it protects your company from huge financial loss. Plus, most states require you to carry workers’ compensation insurance.  

Workers’ compensation is available from private insurance carriers or through a state’s assigned risk pool. But there are good reasons your small business should skip both of those options and instead partner with a professional employer organization, or PEO, for workers’ compensation. A PEO’s program offers seven advantages over policies you might get somewhere else.  

Number 1: A PEO like Axcet HR Solutions offers a master policy – a single policy issued in the PEO’s name – that provides coverage for its clients. It often means you’ll get lower costs than your small business could get on its own.    

You could be like an Axcet client in Olathe, Kansas. After putting off getting workers’ compensation insurance for years, the client talked to Axcet. He said finally having workers’ comp insurance – and all his company’s other HR issues handled – was a godsend. But the kicker was that Axcet actually saved his company money.  

 Number 2: No more comparing workers’ compensation policies, rates and providers every year. The PEO manages annual renewals, so you don’t have to spend time on that task anymore.  

Number 3: No down payment required. Having to make a lump-sum annual premium payment – or even a down payment on the total before installment payments start – can be a financial strain. With a PEO, you don’t have that upfront cost.  

Number 4: Pay-as-you-go billing. Pay-as-you-go workers’ compensation relieves a financial and administrative burden, because premiums are paid with each payroll run based on real-time payroll wages and reporting. Besides improving cash flow, this payment method ensures your smaller company pays only for the coverage needed based on your actual payroll.  

 Number 5: No more year-end policy audit. With traditional workers’ compensation insurance, small businesses forecast expected annual payroll. Premium costs are based on those best-guess projections. Then you have to do a detailed year-end audit of the payroll your company paid all year long for each workers’ compensation class code. It’s painstaking, and you may find out you owe additional premiums.    

Because PEOs like Axcet collect workers’ compensation charges based on the actual payroll processed during each pay period, you won’t owe anything more at the end of the policy period, and you won’t have to go through an annual audit.  

 Number 6: A PEO takes ownership of the claims process. Beyond the policy advantages, the greatest benefit of participating in a PEO’s workers’ compensation program is the access you get to a dedicated team of experienced risk management professionals. Axcet’s risk manager and claims manager understand the workers’ compensation system completely, and they actively manage every claim from the employer’s perspective.    

And Number 7: A PEO can actually help your small business get better at managing risk. Traditional workers’ compensation insurance policies and providers do their basic job of providing loss prevention services. But only a PEO becomes a knowledgeable ally. Axcet, for example, assigns a safety and health consultant to every client. That expert can provide training, workplace safety audits and other expertise that improves your small company’s ability to manage workplace risks overall.     

As a certified professional employer organization for small businesses, Axcet HR Solutions provides a master workers’ compensation program and a highly experienced risk management team. Call or email Axcet today to learn more about how your company can get all seven workers’ compensation advantages by partnering with Axcet.