Pay-As-You-Go Workers' Compensation for Businesses
HRDelivered doesn't just provide workers' comp insurance for business owners - we stabilize costs, manage risk, and take the administrative burden off your plate, whether you're a small to midsize business or larger company. No down payment. Real-time billing based on actual payroll.
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 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:
- No down payment or large upfront premium
- Premiums tied directly to real payroll data
- Improved cash flow and predictable expenses
- Fewer year-end audit adjustments and surprises
Why Do Companies Need Workers' Compensation Insurance?
In most states, workers' compensation is legally required as soon as a business has employees. Proper coverage protects both parties when workplace injuries occur, while helping businesses avoid serious penalties for non-compliance.
Non-compliance risks may include:
- State fines and penalties
- Stop-work orders
- Personal liability for owners
- 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, enabling recovery while helping to avoid financial hardship.
Medical & Hospital Care
Covers medical treatment and hospital care for injuries or illnesses sustained on the job.
Partial Wage Replacement
Provides partial wage replacement during the employee's recovery period from a workplace injury.
Disability Benefits
Temporary or permanent disability benefits for employees who are unable to return to work.
Survivor & Death Benefits
Death benefits for surviving dependents in the event of a work-related fatality, plus return-to-work rehabilitation support.
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:
- Limiting employee lawsuits related to workplace injuries
- Covering legal defense costs and settlements
- Preventing a single claim from becoming a catastrophic loss
- Providing predictable, insured risk management
A Smarter Approach to Workers' Compensation
Traditional workers' comp plans rely on estimates, upfront deposits, and costly audits. HRDelivered's solution is designed to improve cash flow, reduce surprises, and deliver more stable pricing, especially for well-managed businesses.
High Upfront Costs & Cash-Flow Strain
Large down payments restrict business cash flow before revenue is earned, especially challenging for small or growing businesses.
Costly Year-End Audit Surprises
Premiums are reconciled annually. Underpayments must be paid immediately; overpayments mean capital was unnecessarily tied up all year.
Premiums Based on Estimated Payroll
Estimates don't account for seasonal slowdowns or hiring delays, so premiums remain high even when actual payroll drops.
Exclusive Master Plan Access
Master policies tied to HRDelivered's EIN with direct carrier relationships. A closed risk pool improves long-term plan stability and pricing consistency.
Lower, More Stable Premiums
Average savings of 6%–8% compared to market rates. Shared claims responsibility with top carriers reduces risk fluctuations across the plan.
Better Rates for Healthy, Low-Risk Groups
Aggressive underwriting for low-risk populations with below-market renewal rates for healthier groups, encouraging safer workplaces and better long-term cost control.
Frequently Asked Questions
Common questions about workers' compensation insurance for business owners.
Most companies are legally required to carry workers' compensation insurance once they employ workers. Specific requirements depend on state laws and the type of employees. Even when not legally required, workers' comp protects small businesses from costly medical claims, lost productivity, and potential lawsuits, making it a smart investment regardless of legal mandate.
Workers' compensation insurance is required in nearly every state, but exact rules vary. Some states have limited exceptions based on business size, employee type, or industry. Texas is the only state where most private employers are not legally required to carry workers' comp, though it is still strongly recommended for liability protection.
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, HRDelivered provides personalized pricing rather than flat rates. Partnering with a PEO can often lower your overall cost through competitive group purchasing power and expert risk management that reduces claims over time.
Workers' compensation insurance premiums are 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 based on factors such as payroll size, job classifications, claims history, and overall workplace risk.
Certain types of workers may be excluded from workers' compensation coverage depending on state law. Common exemptions 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 proper classification and compliance.
Ready to Protect Your Business?
Get a free workers' compensation quote today. Our 100% U.S.-based team is ready to build a plan that fits your business, with no down payment and real-time billing based on actual payroll.