Workers Compensation Insurance
The Insurance Shop
offers workers compensation insurance the way you want.
Choose from direct bill traditional policies or improve business cash
flow with our Pay As You Go Work Comp programs. With over
20 insurance companies to choose from, we're confident we can
find the best workers compensation insurance rates for your
business.
What is Pay As
You Go Workers Compensation Insurance?
Traditionally work comp has
been purchased based on an employers estimated annual payroll
for each employee job classification, or class code. The
insurance company typically requires the employer to make a 25%
premium deposit and then pay the remaining balance over the
first three to nine months of the policy.
The two major down sides to this
billing method is that 1) estimated payroll often changes in the
real world and 2) billing all of the premium in the first half
of the policy is a cash drain. The problem gets even worse
when employers under estimate payroll with a direct bill policy.
Aside from paying another 25% deposit at policy renewal,
employers who underestimate will receive an additional audit
bill to sure up the estimated payroll on the policy that just
ended.
Many insurance companies still offer
direct bill insurance and most agencies only offer direct bill
quotes because they are not equipped to manage the reporting
process for Pay As You Go Work Comp. These policies are
still relevant to small business owners with low premium class
codes and consistent payroll because the premium is affordable.
However, employers who have a premium of $1,500 or more will
likely benefit by utilizing PayGo coverage.
Pay As You Go workers compensation
requires little to no premium deposit to get started.
Additionally, payroll is reported and premium is collected on a
per pay period or monthly basis which greatly improves business
cash flow and reduces employers' exposure to having large audit
balances due at the end of the policy.
The Insurance Shop is one of the
leaders in the Pay As You Go insurance movement. We think
it just makes sense to help American employers find affordable,
cash friendly workers compensation insurance.
We provide access to direct Pay As
You Go insurance and also work with hundreds of payroll
providers and insurance agents around the country.
Contact us
today to learn more about our Pay As You Go work comp programs.
Learn more about
Pay As You Go Insurance
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