17 Nov Pay As You Go Workers Compensation Insurance

Are you looking for ways to take some of the headaches out of workers’ compensation insurance? Workers compensation insurance provides valuable protection for business owners and their employees but can be difficult to for a small business owner to manage. Perhaps Pay As You Go workers compensation insurance would make your life a little easier.


Regular workers compensation policies generally require the employer to estimate annual payroll in advance; there may be a requirement for a significant down payment to cover future obligations, and at the end of the year the employer’s books may be audited to check compliance with workers’ compensation regulations.

A small business owner such as a building contractor who has unpredictable work and employment patterns may struggle with workers’ compensation insurance. It’s difficult to estimate payroll in advance; if you make an overoptimistic estimate you may be overpaying, but if you make a pessimistic estimate and are fortunate enough to secure more contracts than you expected you may face penalties when your books are audited. Add to the equation the difficulties involved in managing cash flow in a small business, and it’s easy to understand why this type of insurance can be problematic for some small business owners.

Some insurers are now offering Pay As You Go workers’ compensation insurance products designed to meet the needs of different types of business enterprise. Employers who are eligible to purchase Pay As You Go workers’ compensation insurance policies pay premiums based on the current employee payroll. Additionally, they may not be required to prepay, and may not be subjected to end-of-year audits.

Contact your insurer or agent and ask whether you qualify for Pay As You Go workers compensation insurance.  An insurance agent will be pleased to help you to manage all of your business insurance needs.

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