What Information Does a PEO Need to Quote Workers' Compensation?

Why PEOs Need Underwriting Information

Workers' compensation in a PEO arrangement is typically provided through the PEO's master policy or through carriers the PEO has access to — not the employer's own standalone policy. The PEO (or its carrier) is taking on the risk of the employer's workforce, which means it needs to understand that risk before quoting coverage terms and pricing.

Unlike a simple administrative service, WC underwriting requires factual inputs. The more complete and accurate the information you provide, the more accurate the quote will be.

Workforce and Payroll Information

The foundation of any WC quote is who works for you and what they earn. Providers typically need:

• Total employee count (full-time, part-time, and by type where relevant)
• Annual payroll, often broken down by state
• Payroll by job type or job classification, not just total payroll
• Owner/officer payroll (treatment varies by state — some states have inclusion/exclusion rules)
• Use of contractors or subcontractors, and how their labor is classified

Payroll is a key rating variable for WC — most policies are priced as a rate per $100 of payroll. Accurate payroll information by classification is essential to a reliable quote.

Workers' Compensation Class Codes

Class codes describe the type of work employees perform. Each code carries a base rate that reflects the historical claims experience for that type of work. You may not know your class codes by number, but you can describe what employees actually do — job duties, tasks, tools used, and environments. Providers will assign or confirm appropriate codes.

If you have current WC coverage, your existing policy will list the class codes assigned. Sharing those codes (and the payroll associated with each) is useful context, though a new provider may review the classifications independently.

Loss Runs and Claims History

Loss runs are formal reports from your current or prior WC carrier showing your claims history — typically the last 3 to 5 years. They include:

• Each claim, open or closed
• Date of injury
• Total paid and reserved amounts
• Claim status (open, closed, reserved)

Loss runs are often the most time-sensitive item to request because they must come from your current carrier. Requesting them early — before you formally approach providers — avoids delays in the quoting process.

Providers use loss run data to understand your actual claims experience, not just your stated rate. A low EMR combined with recent large open claims can affect underwriting differently than a clean history.

Current Coverage Information

Information about your current workers' compensation policy gives providers context:

• Current carrier name
• Policy expiration date
• Current premium and rate structure
• Current EMR (experience modification rate), if applicable
• State(s) covered under the current policy

Locations and Multi-State Considerations

WC is regulated at the state level. Each state has its own rules, rates, and in some cases, exclusive state funds that limit how coverage can be provided. Providers need to know where your employees work to determine eligibility, applicable rates, and whether their program can cover all of your locations.

If employees work in states with exclusive state fund requirements, the quoting process will be more complex — the PEO arrangement may need to accommodate those requirements separately.

Safety and Loss Control Information

Some providers will ask about safety practices, especially for employers in higher-risk industries. This may include:

• Whether a formal safety program exists
• OSHA recordable incident history
• Whether safety training is documented
• Any OSHA citations in recent years

Employers with strong safety cultures and documented programs are often viewed more favorably by underwriters — particularly for higher-hazard class codes.

Why Underwriting Requirements Vary by Provider

Different PEOs have access to different carriers and programs. Some have broad appetite across industries; others specialize in lower-risk employers or specific sectors. As a result:

• Some providers will underwrite employers that others decline
• Requirements for information may be more or less detailed depending on risk appetite
• The same employer profile may produce materially different quotes across providers

This variation is one reason that comparing multiple PEOs matters — not just for pricing, but for coverage availability and program terms.

What to Do Next

Before approaching providers, gather your current loss runs, a recent payroll summary by job type, and your existing policy details. PEO Benefit Partners helps employers prepare for the quoting process and compare workers' compensation programs across providers — so you enter evaluations with the right information in hand.