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PEO 101 · PEO underwriting
PEO underwriting,
explained like a pre-approval.
Before a PEO gives you a price, it checks your business the way a lender checks a home buyer: who's on your team, what kind of work they do and your history of injury claims. Here's what PEOs look at, what to have ready and how to get an accurate quote the first time.
PEOs review:
Your employee list
Health plan details
Work comp history
Payroll by job type
What underwriters look at
Three checks · one price
Illustrative example
Health check
Medical
Employee ages
From your census
Who's covered
Staff + family
Location
ZIP codes
Current plan
Rates + renewal
Claims history
Sometimes
Sets
Health rates
Work comp check
Injury risk
Job types
Class codes
Payroll by job
Per $100 of wages
Past claims
Loss runs
Safety score
Experience mod
Industry
Accepted or not
Sets
Work comp rate
Business check
Stability
Payroll records
Recent reports
Payroll taxes
Filed + current
States
Where you hire
Paperwork
Complete + accurate
Current PEO
If switching
Sets
Yes, no or new terms
Every PEO weighs these differently, so the same business can get very different quotes.
Well-known PEOs you can compare, including
Sound familiar?
Why PEO quotes can feel
like a black box.
Underwriting is where most PEO deals speed up, slow down or stall. These are the moments that catch owners off guard.
“Why do they need my employees' ages and ZIP codes?”
Health prices depend on who's covered. Ages, family coverage and location help the insurance carrier estimate future medical costs. It's a standard request and should always be handled securely.
“Our quote came back higher than we expected.”
Small details move the price: a job coded wrong, missing family members on the census or an old claim nobody mentioned. Clean, complete data gets you the most accurate quote.
“What's a loss run, and where do I get one?”
A loss run is your work comp claims history. Your current insurance carrier or agent can send it, usually covering the past three to five years.
“We got declined and don't know why.”
Some PEOs don't accept certain industries or heavier claim histories. A no from one PEO doesn't mean every PEO will say no.
“They want my team to fill out health forms.”
Some carriers ask smaller groups for health questionnaires. Others rely on data tools and your census instead. Knowing which PEOs require them saves your team the hassle.
“It's taking forever to get a price.”
Most delays come down to missing or messy paperwork. Sending a complete package up front keeps things moving.
How underwriting works
Think of it as a mortgage
pre-approval for your team.
A lender looks at your income and credit before it sets your interest rate. A PEO does the same with your workforce: it checks your team's health profile and your injury risk, then sets your price. The better your information, the better and faster your quote.
1.00
is an average experience mod. Lower can cut your work comp cost; higher can raise it
3–5 yrs
of work comp claims history (loss runs) PEOs usually ask to see
$100
of payroll is the unit work comp rates are priced on, by job type
2 checks
health and work comp, reviewed before you get a final price
Experience mod basics: NCCI, ABCs of Experience Rating.
What to have ready
Your underwriting starter pack.
Employee census: ages, ZIP codes, job titles, pay and who's on the health plan
Recent payroll reports and your latest payroll tax filings
Current health plan summary, rates and renewal notice
Work comp policy showing your class codes
Loss runs from your work comp carrier, usually three to five years
Your current PEO contract, if you're switching
Free to compare
Send one package. Compare many quotes.
Share your documents once and we'll line up vetted PEOs that fit your business, so you don't repeat the same paperwork for every PEO.
The process
From documents to decision
in four steps.
Every PEO runs underwriting a little differently, but most follow this path.
Step 1
Gather your documents
Census, payroll reports, health plan details and work comp history. Most of it comes from your payroll provider and insurance agent.
Step 2
PEOs review your risk
Underwriters check your team's health profile, job types, injury history and paperwork, then decide whether and how to quote.
Step 3
Quotes come back
Each PEO prices its admin fee, health plans and work comp. Formats differ, so compare them line by line.
Step 4
Choose and get set up
Pick your PEO, sign, and set up payroll and benefits. Time your start date around your health renewal and payroll calendar.
What it looks like
A 25-person HVAC company, two very different quotes
Picture a 25-person HVAC company. Its first submission lists field techs as office staff and leaves out an old back-injury claim. The quote looks great, then gets repriced once the PEO checks the loss runs. Resubmitted with correct job codes and full history, the business gets a firm quote it can count on. See real results in our case studies.
Illustrative example based on common submissions.
Before
Field techs coded as office workers
An old claim left off the paperwork
Family members missing from the census
Quote repriced after review
After
Every job coded correctly
Full claims history shared up front
Complete census, family included
A firm quote with no surprises
Quick check
Are you ready for underwriting?
Check these off before you ask PEOs for quotes.
Your employee list is current, with ages and ZIP codes
You know who's on your health plan, family included
You have your latest health renewal notice
You've asked your agent or carrier for loss runs
Your payroll taxes are filed and current
Every job title matches the work people actually do
Compare your options
Three ways to get through
PEO underwriting.
Apply to PEOs yourself
Talk to one PEO
PEO Marketplace
Paperwork
Resend it to every PEO
One PEO's forms
One package, many PEOs
Time to compare quotes
Slowest
Faster, one quote
Fastest
PEOs you hear from
Whoever responds
One
Fits from 40+ vetted PEOs
Data checked before it's sent
On your own
By that PEO
Gaps flagged up front
If a PEO declines
Start over
Dead end
Other PEOs still in play
Comparing quotes
Different formats
Nothing to compare
Side by side, every fee decoded
Point of view
Yours alone
One PEO's offer
Vendor-neutral, all options
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Underwriting FAQ
PEO underwriting questions,
answered simply.
Reviewed by PEO Marketplace, a licensed Florida insurance agency (#L129491). Last updated October 2026.
What is PEO underwriting?
PEO underwriting is the review a PEO does before it accepts your business and sets your price. It looks at two main things: your group's health profile, which drives health insurance rates, and your injury risk, which drives work comp rates. It also checks basics like payroll records and tax filings. New to PEOs? Start with what a PEO is.
What documents do I need for PEO underwriting?
Usually an employee census, recent payroll reports and tax filings, your current health plan rates and renewal, your work comp policy and loss runs. If you're switching PEOs, include your current PEO contract too.
How long does PEO underwriting take?
Often one to three weeks, depending on how quickly documents come in and how complex your business is. A complete package up front is the biggest thing you control.
What is an employee census?
A census is a spreadsheet of your employees with the details underwriters need: age or date of birth, ZIP code, job title, pay, and which employees and family members are on the health plan. It's the most important underwriting document.
What is a loss run?
A loss run is a report of your work comp claims: when they happened, what was paid and whether they're still open. Ask your current carrier or insurance agent for the last three to five years.
What is an experience mod?
An experience mod (or X-mod) compares your work comp claims to similar businesses. 1.00 is average. Below 1.00 means fewer or smaller claims than expected and can lower your cost; above 1.00 can raise it or limit which PEOs will accept you. NCCI explains experience rating here.
Why would a PEO decline my business?
Common reasons include an industry the PEO doesn't cover, a heavy claims history, a high experience mod, unfiled payroll taxes or incomplete information. Each PEO has its own appetite, so a no from one isn't a no from all.
Do my employees have to fill out health questionnaires?
Sometimes. Some carriers ask smaller groups for health questionnaires, while others rely on data tools and your census. If your team would rather skip them, compare PEOs that don't require them. To estimate costs first, try our PEO calculator.
Can my price change after underwriting?
It can, if information changes or turns out to be wrong. Quotes are based on what you submit, so a missing claim or a misclassified job can lead to a revised rate. Accurate data up front is your best protection.
How does PEO Marketplace help with underwriting?
You prepare one package, we check it for gaps, and we share it with vetted PEOs that fit your business. Then you compare the quotes side by side, with every fee decoded. Comparing with our team is free for businesses, and the first 50 get free beta access to the platform.
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Your next step.
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