Why go for pay-as-you-go workers’ compensation when many other standard options are available? For business owners looking to manage their insurance costs, pay-as-you-go workers’ comp offers many advantages over traditional insurance.
5 Benefits of Pay-As-You-Go Workers’ Compensation Insurance
Choosing the right workers’ compensation insurance is always a bit tricky. There are many different factors to consider, all of which could affect the benefits derived from the package. But pay-as-you-go workers’ compensation offers many advantages over traditional lump sum policies, including:
Reduced Financial Strain
Insurance payments can take a significant toll on a company’s resources. Most insurance packages typically require a sizable down payment‒often 25% of the entire policy’s cost. Monthly premiums can also be quite expensive, sometimes putting a considerable strain on the business budget and affecting cash flow management.
In contrast, pay-as-you-go workers’ compensation is much easier to manage from a cost standpoint. Usually, no large lump sum payment is required, and it is possible to spread out the cost of premiums over the year.
Of course, many factors could affect how much a business ultimately pays for workers’ comp. These include location, the particular area of industry, and the number of employees, among others. But pay-as-you-go workers’ compensation is generally easier to manage than standard workers’ comp policies.
Easy To Predict Costs
It can be difficult for employees to estimate how much workers’ comp will cost. But pay-as-you-go options calculate rates accurately with every payroll cycle. It eliminates the inaccuracies resulting from hiring or letting go of workers. For business owners that prefer not to pay for workers’ comp insurance for the entire year, pay-as-you-go workers’ compensation is a more feasible option.
Simplified Auditing
Pay-as-you-go workers’ compensation greatly simplifies the auditing process, which is always helpful for business accounting and tax filing. With these types of insurance policies, a business’s payroll will determine the premiums they pay. It makes it much easier to make accurate payments every time.
This system also eliminates the over- or under-estimation when making insurance payments. Consequently, businesses can simplify their auditing processes considerably.
Easy-to-Remember Payment Schedules
It is often easy to miss insurance payments when they are due. With pay-as-you-go workers’ comp, payments come from a payroll period and automatically come out from the policy provider’s bank account. It makes the process smoother, especially when conducting payment schedules.
All the Benefits of Workers’ Comp Insurance
Pay-as-you-go workers’ compensation provides all the same benefits as standard workers’ comp packages because it is a pay-as-you-go workers’ compensation insurance policy! It is even auditable, which is an essential factor for tax-filing purposes.
About InsureMyWorkComp
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. 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