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Being an employer means you must provide Worker's compensation insurance commonly known as work comp. If your company has decided not to engage a Professional Employer Organization - PEO then your company must make other arrangements to establish work comp coverage for your employees. Fines for failure to provide coverage can be severe. In addition small business owners can be held personally liable for the cost of injuries if they they have not secured adequate coverage for their employees. Most Professional Employer Organizations allow business owners to "pay-as-you-go" for workers' compensation coverage. This allows businesses to conserve their cash and ensures they are not overpaying for coverage. In addition many PEOs provide competitive work comp coverage pricing and will assist employers with the establishment of strong safety programs that will keep work comp claims low and the costs for coverage in check. Keeping employees healthy and keeping costs under control helps your company succeed.
Many companies have acquired workers' compensation coverage through a PEO - Professional Employer Organization. Workers' Compensation is regulated at the state level and each state has slightly differing rules for how employers must comply with state law. Also be advised that if you have employees in more than one state, you will need to ensure that you have coverage in place in each of those states. Select a state below for links to Workers' Compensation resources in your state.