Pay-As-You-Go Workers’ Compensation for Business Owners
Workers’ Compensation
HRDelivered doesn’t just provide workers’ comp insurance for business owners — we stabilize costs, manages risk, and take the administrative burden off your plate, whether you’re a small to midsize business or larger company.
Flexible Workers’ Comp Coverage Built Around Your Payroll
With our Pay-As-You-Go (PAYG) Workers’ Compensation plans, businesses of all sizes pay premiums in real time with each payroll cycle. There are no large upfront deposits, and billing is based on actual payroll, not estimates. This approach helps business owners maintain better cash flow while staying fully compliant with state workers’ comp requirements.
Key benefits of Pay-As-You-Go workers’ comp include:
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No down payment or large upfront premium
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Premiums tied directly to real payroll data
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Improved cash flow and predictable expenses
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Fewer year-end audit adjustments and surprises
Why Do Companies Need Workers’ Compensation Insurance?
In most states, workers’ compensation insurance is legally required as soon as a business has employees, and carrying proper coverage protects both employees and employers by providing financial and legal protection when workplace injuries or job-related illnesses occur—while helping businesses avoid serious penalties for non-compliance.
Non-compliance risks may include:
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State fines and penalties
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Stop-work orders
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Personal liability for owners
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Potential criminal charges in some states
What Does Workers’ Compensation Insurance Cover?
Workers’ compensation insurance provides essential benefits to employees who are injured or become ill due to their job recover while helping to avoid financial hardship.
Coverage typically includes:
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Medical treatment and hospital care
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Partial wage replacement during recovery
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Temporary or permanent disability benefits
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Rehabilitation and return-to-work support
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Death benefits for surviving dependents
How Does Workers’ Comp Protect Employers?
Workers’ compensation doesn’t just protect employees—it also shields employers from significant financial and legal risks, giving business owners peace of mind knowing their company is protected when the unexpected happens.
For business owners, workers’ comp helps by:
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Limiting employee lawsuits related to workplace injuries
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Covering legal defense costs and settlements
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Preventing a single claim from becoming a catastrophic loss
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Providing predictable, insured risk management
Business Resources
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HRDelivered is a proud member of NAPEO (National Association of Professional Employer Organizations), the leading voice of the PEO industry. Our membership reflects our commitment to best practices, compliance excellence, and delivering trusted HR solutions for growing businesses.
The Importance of Workers’ Comp for Small Businesses
Workers’ compensation through a PEO is a smart solution for small businesses looking to control costs while staying compliant. By partnering with a PEO, small employers gain access to a professionally managed workers’ compensation program with competitive rates, streamlined claims management, and built-in safety support. This approach helps reduce workplace risk, minimize costly claims, and protect both employees and the business — without the complexity of managing workers’ comp alone.
A Smarter Approach to Workers’ Compensation
Traditional workers’ comp plans rely on estimates, upfront deposits, and costly audits. HRDelivered’s workers’ comp solution is designed to improve cash flow, reduce surprises, and deliver more stable pricing—especially for well-managed businesses.
Traditional Workers’ Comp
High Upfront Costs & Cash-Flow Strain
Traditional workers’ comp policies require significant upfront payments that can restrict business cash flow.
Large down payment or premium deposit due at policy start
Capital tied up before revenue is earned
Especially challenging for small, growing, or seasonal businesses
Costly Year-End Audit Surprises
Traditional policies rely on annual audits that often result in unexpected expenses.
Premiums are reconciled once per year
Underpaid premiums must be paid immediately
Overpayments mean capital was unnecessarily tied up
Budgeting becomes unpredictable
Premiums Based on Estimated Payroll
Workers’ comp costs are calculated projected payroll instead of actual payroll.
Estimates don’t account for seasonal slowdowns
Hiring delays and reduced hours aren’t reflected
Premiums remain high even when payroll drops
Little flexibility as business conditions change
HRDelivered Workers’ Compensation
Exclusive Master Plan Access
HRDelivered provides access to workers’ comp plans that are unavailable on the open market.
Master policies tied directly to HRDelivered’s EIN
Direct carrier relationships strengthen pricing and consistency
Closed risk pool improves long-term plan stability
Lower, More Stable Premiums
Our model is designed to reduce volatility and pass savings directly to clients.
Average savings of 6%–8% compared to market rates
Shared claims responsibility with top carriers
Reduced risk fluctuations across the plan
Additional discounts available for qualifying groups
Better Rates for Healthy, Low-Risk Groups
HRDelivered rewards responsible employers with more competitive pricing.
Aggressive underwriting for low-risk populations
Below-market renewal rates for healthier groups
Encourages safer workplaces and better risk management
Helps control long-term labor and benefits costs
PEO Only
Simplify Workers’ Comp with Other HR & PEO Services
HRDelivered provides 100% U.S.-based support, with a dedicated representative assigned to every workers’ comp client. Our workers’ compensation integrates seamlessly with payroll, HR, and compliance services—creating a connected employment solution that improves accuracy, reduces risk, and simplifies administration. Clients also benefit from guaranteed savings of 6–8% on annual health insurance renewals and up to 30% on overall employee administration.
A 5-person business can offer benefits that rival a 200-person company — boosting retention, saving on costs, and standing out in today’s competitive market.
Explore HRDelivered Workers’ Comp
Learn more about how our workers’ compensation insurance can help business owners for companies of any size. Get a free worker’s comp insurance quote today!
Frequently Asked Questions (FAQ) about Workers’ Compensation Insurance
Do Companies need to have workers' compensation insurance?
Most companies are legally required to carry workers’ compensation insurance once they employ workers. However, specific requirements depend on state laws and the type of employees.
Is workers' comp insurance required in every state?
Workers’ compensation insurance is required in nearly every state, but the exact rules vary — some states have limited exceptions based on business size, employee type, or industry, and Texas is the only state where most private employers are not legally required to carry workers’ comp.
How much does workers' compensation insurance cost?
Workers’ compensation insurance costs vary based on factors like your industry, total payroll, job risk classifications, and your company’s safety and claims history. Because each business situation is unique, most PEOs — including HRDelivered — provide personalized pricing rather than flat rates on a website. Partnering with a PEO can often help lower your overall cost through competitive group purchasing power and expert risk management that reduces claims over time.
What does workers' compensation insurance cover?
Workers’ compensation insurance covers medical expenses and a portion of lost wages for employees who are injured or become ill due to their job. It can also provide disability benefits, rehabilitation services, and survivor benefits in the event of a work-related fatality. In addition, workers’ compensation typically protects employers by limiting liability and covering legal costs related to workplace injury claims.
Who pays workers' compensation insurance premiums?
Workers’ compensation insurance premiums are typically paid by the employer, not the employee. In most states, it is illegal to pass the cost of workers’ compensation coverage to employees through payroll deductions. Premium amounts are generally based on factors such as payroll size, job classifications, claims history, and overall workplace risk.
What types of employees are not covered by workers' compensation programs?
Certain types of workers may be excluded from workers’ compensation coverage depending on state law. Common exemptions can include independent contractors, business owners or partners, agricultural workers, domestic employees, and some seasonal or casual workers. Coverage rules vary by state, so employers should review local requirements to ensure compliance and proper classification.
Do small businesses need workers' compensation insurance?
In most states, small business owners are required to carry workers’ compensation insurance as soon as they hire their first employee, though requirements can vary by state and employee type. This is the case even if you only have a couple of employees or are the sole proprietor.
Even when not legally required, carrying workers’ compensation for small business workers helps protect small businesses from costly medical claims, lost productivity, and potential lawsuits.