As a small business owner, you have a lot on your plate every day, especially when handling workers’ compensation claims and concerns. From the upfront payments to annual audits, there’s not plenty of options when it comes to workers’ compensation coverage. That’s why utilizing Pay-as-You-Go workers comp insurance is so attractive for small businesses. This automated system reduces the inaccuracies of upfront payroll estimates that lead to expensive surprises down the road and provides all the coverage and compliance of a traditional workers’ compensation plan.
Here’s a better look at this kind of insurance and why it’s beneficial to small businesses like yours.
What is Pay-as-You-Go Coverage?
First, it’s important to look at what makes this insurance coverage so attractive compared to traditional coverage. Pay-as-You-Go workers comp makes costs more manageable for companies and sometimes doesn’t require a down payment or regular monthly fees. Insurers in the industry that offer this kind of workers’ comp adjust your premium every time you run payroll. This kind of coverage is becoming more popular among small businesses in today’s remote-driven world.
Improved Cash Flow
This coverage enables users to pay accurate premiums because they’re based on your actual payroll each time you run it. So, there’s no down payment or deposit like with a traditional workers’ compensation program and, instead, your payments are spread throughout the year.
Easy and Automated
Pay-as-You-Go connects directly to your real-time payroll data every time you run your payroll. Premiums become a series of regular payments that are automatically calculated alongside your business’s payroll schedule, whether that’s monthly or every two weeks. This automation saves you time so you can keep your focus on your other operations.
With this coverage, small businesses can save time with their end-of-year audits. In most scenarios, there won’t be a time-consuming audit because your premium works off of your actual payroll during the year. This helps mitigate the need for a tedious audit, and there’s no overpaying or underpaying.
Keeping You Compliant
Each state comes with its own workers’ compensation laws, so it’s crucial to ensure that you have the right coverage level when you have employees to stay compliant and above board. Pay-as-You-Go makes it easier than ever to stay compliant by integrating directly with your payroll service, so your premium is always accurate and reflects any payroll changes.
About InsureMyWorkComp & Their Workers Comp Solutions
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs, such as occupational accident insurance. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.