PEO Workers Comp Insurance, Explained

peo workers comp

If you’re looking to grow your business, you’ve probably wondered how PEO workers comp insurance and payroll services can help your company. Below, we’ll explain the ins and outs of how a PEO can help your business today.

A PEO is a professional employer organization that serves as a co-employer, sharing certain responsibilities over its partners’ employees. A PEO provides administrative services to business owners, including payroll administration, workers compensation, risk management, and human resource compliance. 

PEOs allow small businesses to provide their employees with big benefits, including thorough workers comp insurance that will help cover expenses from accidents or unexpected injuries. So, how exactly does PEO workers comp work? Why outsource workers compensation? Read more below to learn how a PEO can handle your company’s coverage.

PEO Workers Comp Makes Your Job Safer

PEO workers comp helps provide employees with safer work environments. For smaller businesses, according to the NAPEO, PEOs may provide “pre-employment drug tests, loss control and safety procedures, claims management of injuries, safety training, employee assistance plans, back-to-work programs, and drug-free workplace programs enhance employee safety and well-being.”

Individual states have their own regulations, but most small businesses are required to provide workers comp insurance to their employees in case of accidents. Even with extensive workplace safety protocols in place, workers’ comp is an extra safety net to help cover medical expenses, lost wages, and ongoing care following an injury.

With PEO workers comp, you’re covering your employees and taking advantage of the PEO’s large network, which allows for the lowest insurance rates possible. 

Additionally, PEOs can make sure employees receive the best care possible by leading them closely through the entire recovery process, from doctors’ appointments to treatment through return-to-work programs. These programs adapt work to injured or recovering employees by modifying the job to fit the employee’s ability. Efficient handling of workers compensation benefits the employee, employer, and the PEO providing the service.

Breaking Down PEO Workers Comp

Safety Audits & Training

As mentioned above, PEO workers comp is dedicated to creating a safe work environment for all employees. A good PEO may undergo an extensive review of your facility and procedures, determining how well your business complies with national safety regulations. 

At Canal HR, we have an occupational safety program that will provide knowledgeable training programs for your employees to educate them on safety procedures and provide you with documentation to support their education.

The first goal of workers’ comp is prevention. By learning the best ways to prevent dangerous work-related incidents, an employee can minimize their chances of being harmed and the employer can save costs.

Possible safety training features include:

  • Identifying possible hazardous risks, anticipating economic declines, or bracing for a high employee turnover 
  • Recognizing how often a mistake occurs during operation and the impact of that mistake
  • Creating an open dialogue where employees and employers can assess the validity of possible solutions
  • Isolating the best practices in an employer’s specific field and implementing these practices

Surplus of Administration

PEOs offer staff to handle payroll, benefits, and much more. When an employee files for workers comp insurance, a PEO will handle the claim and documentation, as well as the releasing of benefits. They take the stress and worry out of the owners’ hands. Businesses can focus on day-to-day productivity, while letting an outside company handle the administrative tasks required to make everything run smoothly. 

The Benefits of Working with a PEO

PEO workers comp insurance provides employers with access to cost-effective coverage. The PEO will handle negotiating prices with healthcare providers, the process of enrolling an employee, and even the medical management of an injured employee. Some benefits a PEO plan might also feature are a flexible spending account, dental and medical insurance, life insurance, or a retirement plan. PEO workers comp programs can also provide return-to-work procedures and assess loss prevention.

Working with a PEO lets you focus on your business and not excess paperwork. 

Workers Comp Insurance from Canal HR

Canal HR values the employer-employee relationship. Our workers comp insurance services provide swift and considerate care for on-the-job injuries and cost-effective solutions for employers.

Canal HR has an on-staff attorney and a network of preferred occupational medical providers ready to take on your PEO workers comp insurance needs. Contact us today!