What is Workers' Compensation insurance?
Workers' compensation insurance provides coverage for an employee who has suffered an injury or illness from job-related duties. Coverage includes medical and rehabilitation costs and lost wages for employees injured on the job. The insurance premium you pay depends on your employees job descriptions i.e. administrative, construction worker, etc.
Why do I need workers' compensation insurance?
Workers compensation insurance is required by law in most states. .
Without adequate workers' compensation insurance the employer is exposed to two types of risk. First, if an employee is injured on the job, the employer may be held personally liable for both the cost of their medical care and for the lost wages while the employee is unable to work. Second, many states impose strict fines and penalties for employers who are cited for not having the required insurance.
As an employer you need workers compensation or you run the risk of governmental fines and many out of pocket expenses while being personally liable from accidents that may occur.
How can PEOs relieve the burden of securing a policy?
PEOs can handle workers comp policies for you. They make it easy to manage the burden to provide Workers Compensation Certificates. They may even issue Workers Comp policies within the same day.
A traditional Workers comp policy from an agency may require an upfront payment of a few months premiums. Contractors can benefit because with a Pay-as-you-go program with a PEO or ASO model you eliminate the large deposits, and the year-end payments, and the audits.
Employee leasing companies operating as PEOs or as ASOs are a very popular choices for owners of small- and medium-sized businesses who want to focus on the business, not the administrative burdens behind it.
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