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What is Pay-as-you-go Workers’ Compensation?

Each Insurance Carrier seems to give it a different name, but the core of pay-as-you-go Workers’ Compensation remains essentially the same. So, what is it exactly?


It sounds exactly like what it is – a payment system that works in real time with your business’s payroll to make automated premium withdrawal for Workers’ Compensation. Premium is calculated on actual payrolls which minimizes audit adjustments, meaning you don’t have to worry about an unexpected bill at the end of your payment cycle.

What are the other benefits?

Less audit adjustments aren’t the only benefits to Pay-as-you-go Workers’ Compensation. Generally, there are no large premium down payments and no installment fees. Also, premium payments are made after each payroll instead of being paid monthly, quarterly or annually. These combined benefits make this tool more than a billing option – it’s a cash flow solution.
Plus, most carriers offer options that integrate with your current payroll management system and have efficient online options to generate reports – which helps save you time.

Who should consider Pay-as-you-go Worker’s Compensation?

Really anyone who has a Worker’s Compensation policy can take advantage of Pay-as-you-go options to streamline their business. No matter the size of your business – there is an option available for you.

Pay-as-you-go Workers’ Compensation is ideal for businesses that experience employment seasonality. Construction companies who hire on more personnel in the summer and scale back in the winter will see their premium payments adjusting to this ebb and flow. Retail industries who bring on extra staff for seasonal work do not need to worry about the increased payroll resulting in audit exposures because the premium adjusts automatically to each payroll period.

How do I get it?

To enroll in a pay-as-you-go workers’ compensation solution contact Concklin Insurance Agency with about a new Workers’ Compensation policy, or before your existing policy renews and ask what solutions we have for your business.