What is Pay-as-You-Go Workers’ Compensation Insurance?
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As a business owner, it’s important to get sufficient Workers’ Compensation coverage without breaking the bank. To achieve this goal, employers should consider purchasing a pay-as-you-go Workers’ Compensation insurance policy.
With pay-as-you-go Workers’ Compensation insurance policies, employers can adjust their monthly premiums following payroll changes while protecting their employees. Though pay-as-you-go Workers’ Compensation coverage can be available to all types of businesses, it may be especially hard to find for certain high-risk companies like those in the construction industry. Because of the flexibility and affordability of pay-as-you-go insurance, it can be beneficial to various employers. However, it might be most appealing to small business owners or entrepreneurs that need to save as they grow.
At NPN Brokers, we are dedicated to helping employers find affordable, comprehensive Workers’ Compensation coverage that protects themselves and their employees. To learn more about the Workers’ Compensation insurance brokers at NPN Brokers, call today at (866) 340-9120.
How Does Pay-as-You-Go Workers’ Compensation Insurance Work?
A pay-as-you-go Workers’ Compensation policy is an insurance plan that works by keeping track of a company’s payroll. As payroll changes occur, your policy will take account of those changes and update your Workers’ Compensation insurance premium accordingly.
There are various types of Workers’ Compensation insurance policies, an appealing one being pay-as-you-go insurance. Standard insurance policies generally have a set premium that might change if certain events occur. For example, with standard insurance policies, premiums might go up or down depending on workplace injuries. With pay-as-you-go Workers’ Compensation insurance policies, premiums change more drastically and more frequently, and not in a bad way.
Essentially, pay-as-you-go Workers’ Compensation insurance ebbs and flows as your company does. Learning about the perks of this type of coverage can be eye-opening for businesses aiming to reduce the cost of Workers’ Compensation insurance while remaining covered. Contact our Workers’ Compensation insurance brokers if you’re curious about what pay-as-you-go coverage might look like for your business.
With pay-as-you-go Workers’ Compensation insurance, premiums change as payroll does. Payroll is one of the biggest factors in determining the cost of a business’s insurance policy. Suppose your company experiences frequent changes in payroll. In that case, it may not seem fair to pay for Workers’ Compensation insurance for a set number of employees for an entire year.
Because pay-as-you-go Workers’ Compensation insurance allows you to pay for premiums based on exact payroll numbers and not annual estimates, you can save substantially with this type of coverage.
Can Anyone Get Pay-as-You-Go Workers’ Compensation Insurance?
Pay-as-you-go Workers’ Compensation insurance is certainly appealing, as you don’t have to commit to one set premium for the duration of your policy. Because of this, and because pay-as-you-go insurance means a carrier assumes some risk, pay-as-you-go coverage can be harder to come by for some businesses.
Insurance companies may be hesitant to offer pay-as-you-go coverage to certain companies. For example, businesses in a high-risk industry like construction may have difficulty finding an insurance company that will offer them a pay-as-you-go plan. Suppose there are frequent changes to the payroll of your construction company. In that case, an insurance company might fear that it is due to constant workplace injuries.
In many cases, insurance companies don’t want to offer pay-as-you-go plans at all. These plans mean months with lower premiums for businesses and fewer payments for insurance companies.
In order to find a transparent, comprehensive pay-as-you-go plan, turn to our Workers’ Compensation insurance brokers. Our brokers have relationships with Workers’ Compensation insurance companies that offer pay-as-you-go policies that don’t require audits, contracts, or deposits to various types of businesses, including high-risk businesses.
Finding pay-as-you-go Workers’ Compensation insurance plans can be challenging as many business owners don’t know these policies exist and may not know how to evaluate them. Once you find a policy, it’s important to ensure that premiums will indeed fluctuate accordingly and that the base premium cost for your current payroll isn’t too high. To ensure this, employers can partner with our experienced brokers for guidance.
Who Can Benefit Most from Pay-as-You-Go Workers’ Compensation Insurance?
While pay-as-you-go Workers’ Compensation insurance appeals to all sorts of businesses, it is especially beneficial for some. Sole proprietors working alone, or business owners starting small and hoping to grow, can save while maintaining comprehensive coverage with a pay-as-you-go Workers’ Compensation plan.
Depending on where you live, your state might require Workers’ Compensation insurance for sole proprietors, or it may not. Regardless, it’s wise for sole proprietors to purchase coverage. The tricky thing is sole proprietorships might consist of one employee, the proprietor, or several.
Often, entrepreneurs or small business owners will start a sole proprietorship in the hope of growing in the future. Pay-as-you-go Workers’ Compensation insurance can be ideal for these individuals, who might hire new employees as time progresses. A pay-as-you-go policy allows you to account for changes in payroll. It doesn’t require that you pay for coverage for non-existent employees before you hire them. Finding pay-as-you-go coverage from our Workers’ Compensation insurance brokers can be the ideal choice for your small business regardless of business formation.
In reality, almost all businesses, large and small, can benefit from getting pay-as-you-go Workers’ Compensation insurance. Pay-as-you-go plans allow for increased transparency, administrative efficiency, and substantial savings for all types of businesses, regardless of size. However, because of its flexibility, pay-as-you-go coverage might be even more helpful for small businesses and entrepreneurs just starting out.
Ask Our Brokers About Pay-as-You-Go Workers’ Compensation Insurance Today
If you need Workers’ Compensation coverage for your business, our brokers can help. To learn more about the Workers’ Compensation insurance brokers at NPN Brokers, call today at (866) 340-9120.