Did you know that workers’ comp coverage is legally required in 49 states? (Texas is the one exception, although it’s still strongly recommended).

Workers’ compensation is a frustrating (and often overlooked) aspect of running a business. Finding and paying for coverage creates added demands on you, the employer. Then there’s compliance, claims, year-end audits, and renewals to consider too.

What’s a savvy business owner to do? Many in your shoes rely on employee leasing companies to handle those necessary but daunting tasks—including workers’ comp coverage.

How does it work, exactly? Keep reading to find out!

What Do Employee Leasing Companies Do?

If you’re new to the idea of employee leasing companies (also called PEOs or Professional Employer Organizations), here’s a quick rundown.

Think of all the time-consuming, employment-related work you have to do that doesn’t actually earn any money. This includes payroll, taxes, workers’ comp audits, compliance issues, and unemployment claims.

Now imagine outsourcing all those tasks to an organization that specializes in HR management. Not only will you be able to offer better benefits to your workers, but you’ll have access to reduced rates for necessary business expenses—such as workers comp.

Sounds great, right? Now let’s dive into some specific ways that employee leasing companies can alleviate your workers comp headaches.

What Workers Compensation Coverage Do You Need?

Each state has a workers’ comp program with very different and distinct regulations. Employers pay into the program, and then benefits are paid to workers who get injured or sick on the job.

These are the most common types of workers comp policies:

• Master policy
• Multiple coordinated policies
• Multiple PEO policies
• Client-purchased policies

Laws vary by state, but you’re generally required to insure your workers under one or more of these policies. There are also major differences in who’s considered an employee and which types of injuries are covered or excluded.

If you don’t have the time or desire to keep track of what’s required and ensure you’re in compliance, it’s a clear sign you need a PEO.

PEOs & Workers Comp Claims: How Does It Work?

Let’s talk about the biggest headache of all—one of your employees gets injured and files a workers’ comp claim.

One of the best benefits of using a PEO is that they handle the bulk of the paperwork in these scenarios. This includes administering, reporting, medically managing, and closing any workers’ compensation claims.

Employee leasing companies help to reduce risks and improve safety awareness, minimizing your risk of a claim before it happens. It’s also an ideal way to reduce your workers’ comp insurance rates.

Do You Need Better Workers Comp Coverage? We Can Help

Are you ready to alleviate your workers comp headaches once and for all?

We can’t change state legislation, but we can ease the burden you feel as a business owner.

Partnering with a PEO is the best way to get the worker’s compensation coverage you need at an affordable price. And in the event of a claim, employee leasing companies become invaluable in saving you time and protecting your business.

Does this sound like the answer you’ve been looking for? Contact us today and let’s discuss your company’s needs!