WEDNESDAY, APRIL 28, 2021
Not only is workers compensation insurance required in most states for businesses across industries, but it is crucial for keeping your business’ employees safe while on the job. 
Luckily there is a new, growing way for your business to pay for workers’ compensation by throwing out old payment methods. Instead of workers compensation insurance being based on the estimated annual payroll of your business, pay-as-you go workers compensation consistently calculates your workers’ compensation premiums based on your payroll as it changes.
Paying as you go means that you won’t have to pay for employees who are no longer employed and that your policy should adjust as the size of your business fluctuates. In this payment plan, you won’t have to worry about a shocking adjustment to your workers compensation premiums at the start of the year or when your policy renews.
Is Pay-As-You-Go Workers Compensation Different than Regular Workers Compensation?
When it comes to coverage types, available limits and the insurance itself, everything is the same. The only thing different is the way your premiums are calculated and how you pay your workers compensation premiums. Instead of paying a fixed amount no matter how your business changes, your workers compensation premiums will be calculated on a rolling basis. You must still carry the same amount of workers compensation as required by your state.
Paying as you go also generally means lower upfront costs and competitive premiums compared to what you were paying before. You can set your premium payments as you wish as your premiums are calculated in real time based on your payroll wage changes rather than annual estimates. This allows you to pay throughout the year in smaller amounts rather than facing a large bill at the end of the year.
How Do I Enroll in Pay-As-You-Go Workers Compensation?
If you already have a workers compensation policy, you can speak with your insurance agent about changing your plan to a pay-as-you-go plan rather than the basic annual payment plan. If you have not yet purchased workers compensation, speak with an insurance agent about the size, payroll and claims history of your business. Then request more information about the pay-as-you-go workers compensation plan.
Keeping your employees safe is of the utmost importance and pay-as-you-go workers compensation helps your company save money and time so that you can focus on what matters most: making your business thrive.
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