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Why Would a Business Choose to Have Workers’ Compensation? 

3 min read

As a business owner, you want to protect your employees at all costs. By offering comprehensive workers’ compensation coverage, you can ensure your employees are happy and healthy and invest in your business’s most vital asset: your team. 

By outsourcing a PEO for your business’s HR needs, you can quickly obtain the workers’ compensation insurance needed to maintain employee safety and morale. At, we connect you with PEOs ensuring top-rated workers’ compensation policies with trusted carriers nationwide. But before you start searching to secure your coverage, let’s look deeper into why workers’ compensation is vital for your business. 

What is Workers’ Compensation Insurance? 

Workers’ compensation insurance covers medical expenses, lost wages, and rehabilitation costs for employees who become injured or sick from work-related responsibilities. Offering this coverage benefits your business across the board. As a business owner, it reduces your risk of financial loss if one of your employees gets seriously injured or ill. As for your employees, workers’ compensation grants them valuable financial protection if they require medical help for work-related incidents. 

How Does Workers’ Compensation Insurance Benefit Your Business? 

Offering workers’ compensation is in your best interest as an employer. From protecting your business from legal action to improving employee retention by providing a safety net for your team, there are ample benefits to offering workers’ compensation in your workplace. Read below for more reasons why a business would provide workers’ compensation. 

Ensures Compliance

Most states require workers’ compensation for businesses. Therefore, it is best to lock down workers’ compensation coverage to protect yourself from fines and legal trouble. The laws vary from state to state, so make sure to do your research on your area’s legal requirements before your business is up and running. 

Helps Injured Workers Get the Help They Need

Safety should always be a priority for your business, especially if you work in a high-risk industry like construction or manufacturing. However, no workplace is perfect, and sometimes accidents happen. In 2021 alone, there were reportedly 2.6 million nonfatal workplace injuries and illnesses in the United States. So, if one of your employees happens to get sick or injured on the job, they will get the medical and wage replacements they need. 

Protects Your Business

Last but not least, workers’ compensation protects your business. If one of your employees has an accident at work, this coverage protects you from any legal proceedings brought forth by the employee or their family. In addition, it also protects you from the detrimental financial harm of medical costs and lost wages. Ultimately, it shields your business from significant financial or legal liability and provides valuable peace of mind. 

Do PEOs Offer Workers’ Compensation Coverage? 

Generally, a PEO, or professional employer organization, will offer workers’ compensation coverage and claims administration for its client company. This coverage will extend to your worksite employees who are actively in the field and, therefore, at risk of injury or illness on the job. When choosing a PEO, consider one that offers a plan covering medical expenses, lost wages, rehabilitation and death benefits, and legal protection for your business. 

Simplify Your Business with 

At, we make it easier to find the perfect PEO provider for your business. With access to some of the largest PEOs in the country, our agents provide high-performing options that will unlock your business’s true potential. If you’re ready to take your business to new heights, connect with our team today to shop PEO quotes and receive competitive pricing within 24-72 hours!

Ready to take your business to the next level?

Contact us today to learn more about how we can help you achieve your goals.

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