31 Jul What is Pay-As-You-Go Workers Compensation Insurance?
Having workers compensation insurance is a requirement by most states for all businesses with employees. The workers comp requirements vary from state to state depending on how many employees your business has and what type of business you run. While carrying workers compensation coverage is an important addition to your business insurance policy, we know that it can sometimes be an expense that might dip a bit deep into the company’s pocketbook.
There has recently been an addition to the worker’s comp insurance realm called Pay-As-You-Go coverage. This type of policy covers your business for the same things a traditional workers comp policy covers, but the policy adjusts your premiums throughout the year according to changes in your business. You will still have the same coverage for work-related employee accidents and injuries with either type of policy. The benefit of having a Pay-As-You-Go policy is that it takes the guesswork out of filing payroll information.
Pay-As-You-Go premiums are calculated using your business’s actual payroll rather than a payroll estimate traditionally used in workers comp policies.
Doing this can eliminate the worry of under- or over-insuring your business. Premiums are recalculated and billed in smaller more frequent increments. You will be required to pay monthly, bi-weekly or even weekly, but you may not have a large, up-front premium requirement that will help to keep your business’s money where it should be- with the business. You can set up automatic payments to make it even easier for your business, too. Using actual payroll numbers can also eliminate the worry of insurance audits at the end of your policy term.
To find out more about Pay-As-You-Go workers comp insurance, watch our short video explanation here https://www.savainsurance.com/coverage/workers-compensation/#/ or give us a call. We will love to find out if Pay-As-You-Go workers compensation insurance is a good fit for your business.