PEO Consultants Blog

3 Ways PEOs Save on Workers’ Comp

#1 PEO Discounts

Small businesses reap the benefits of the large numbers of employees grouped together under a PEO. With this grouping, PEO’s can usually provide workers’ comp at a discount of up to 30%.

#2 Improve Cash Flow

Traditionally, companies purchase workers’ comp via the deposit and audit system. With a PEO, you pay based on each individual payroll, helping companies with large workers’ comp premiums and improving your company’s cash flow.

#3 Co-Employment Model

When working with a PEO, your company is tied to the PEO’s workers’ comp policy. If a claim is filed, it hits the PEO’s policy, not your company’s. Efficient workers’ comp claims management is the responsibility of the PEO, and it is in their financial best interest as well.


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