How PEOs Handle Workers’ Comp Claims So You Don’t Have To

If you’ve ever had an employee get injured on the job, you know how stressful and time-consuming it can be. Between reporting the incident, dealing with doctors, and worrying about insurance, it’s easy to feel overwhelmed—and even more so when you’re still trying to run your business.

That’s why one of the biggest benefits of partnering with a Professional Employer Organization (PEO) is their ability to manage workers’ comp claims efficiently, fairly, and fast.

What Happens After an Injury?

Step one: get the injured employee help.

Whether or not you have a preferred provider list, if it’s an emergency, take them to the nearest qualified medical facility. Period.

Step two: report the incident to your PEO as soon as possible. You'll share:

• Who was injured
  
  

• Where and when it happened
  
  

• Where they were treated
  
  

• What happened
  
  

From that point on, the PEO takes over the heavy lifting.

What the PEO Handles For You

Once a claim is submitted, the PEO will:

• Coordinate with the doctor and insurance provider
  
  

• Manage all follow-up appointments and records
  
  

• Handle communication with the employee
  
  

• Help implement return-to-work strategies (including light duty)
  
  

This lets you—the business owner—focus on your business, not paperwork.

Why PEOs Move Fast (Hint: Skin in the Game)

Most PEOs don’t operate like traditional insurance companies. Instead of pushing risk downstream, they hold large deductibles—often paying the first $250,000 to $2 million out of pocket per claim.

That means they’re highly motivated to:

• Investigate claims quickly
  
  

• Minimize time away from work
  
  

• Close claims fast and affordably
  
  

In short, they're on your side, because your claim hits their wallet too.

Handling Fraudulent Claims Like a Pro

Sometimes claims aren’t what they seem. The employee says they can’t work—then posts a photo riding a motorcycle. Or they lawyer up after seeing a daytime TV ad.

Here’s the catch: proving you’re right still costs money.

That’s where the PEO shines. Using data, experience, and claims management insight, they often choose the most cost-effective outcome—even if that means a small payout instead of a drawn-out legal battle.

They’re not emotional—they’re efficient. And that keeps your loss history cleaner and your business protected.

Light Duty & Return-to-Work Support

Another way PEOs reduce the financial impact of injuries? Return-to-work programs.

If your injured employee can come back in a modified role—even temporarily—it helps:

• Maintain team morale
  
  

• Reduce claim severity
  
  

• Limit long-term wage payments
  
  

• Protect your claims history
  
  

Your PEO will help you design a custom light-duty program and make sure you’re not overpaying someone to sort files just to get them off the couch.

Time Back in Your Day

Ultimately, the biggest advantage of having a PEO manage your claims?

You get your time back.

No chasing hospitals. No haggling with adjusters. No guessing what happens next. You focus on growing your business. The PEO handles the rest.

Want to avoid costly claims and streamline the entire process?
👉 Visit PEOPlaybook.com and find out how the right PEO partner protects your people—and your profits.