What is Pay As You Go Workers Comp?
Pay As You Go Workers Comp is an innovative insurance coverage solution that enables businesses to reduce the cost of providing workers compensation coverage while remaining compliant with state and federal laws.
It provides short-term workers comp coverage for any company, giving them the flexibility to meet their needs in a timely manner. With this option, companies are able to cover their employees at a fraction of the cost associated with traditional policies.
In addition, Pay As You Go Workers Comp allows employers to keep track of their employees’ claims and payments, allowing them to stay on top of any potential risks or liabilities.
This type of insurance can also be beneficial for companies who are subject to changing needs due to seasonal fluctuations or other unexpected changes in demand.
By taking advantage of Pay As You Go Workers Comp, businesses can ensure they’re always covered while keeping costs low.
How Does Pay As You Go Workers Comp Work?
Pay as you go workers comp is a great way for businesses to manage their workers compensation liabilities and costs.
OCMI can help with this, by providing coverage through the state’s workers comp program with real-time payments that are calculated and made throughout the year.
This type of plan allows employers to easily budget their workers comp payments and eliminates large end-of-year bills that can be difficult to manage. By working with OCMI, employers can pay premiums in fixed monthly or quarterly installments based on their current payroll and estimated future payroll amounts.
The company will then adjust the premium payments as necessary for any changes in payroll numbers, so employers are always paying the appropriate amount for their coverage needs.
Additionally, OCMI also offers access to an online portal that makes managing policies and reporting claims easier than ever before. With this kind of convenience, plus the flexibility of pay as you go workers comp plans, it’s no wonder why more businesses are turning to OCMI for their coverage needs!
By utilizing this system, businesses can pay for the exact amount of coverage they need as they go – rather than having to pre-pay for the year in one lump sum. This means that if a company’s payroll changes throughout the year, their premium payments will adjust accordingly. Additionally, because the premium is based on actual payroll, employers will not have to pay more than what’s required and can rest assured that they are paying a fair rate.
Pay As You Go Workers Comp also allows businesses to make payments via ACH or credit cards with no additional processing fees.
Overall, Pay As You Go Workers Comp offers significant financial benefits over traditional workers compensation insurance plans and provides employers with peace of mind knowing that they are only paying what’s necessary to provide adequate coverage for their employees.
It allows businesses to pay their workers comp premium on an ongoing basis, as it accrues, relieving them of the burden of a lump sum payment.
This means that businesses can budget more effectively, avoiding the financial strain of needing to cover an unexpected bill for their workers comp premiums. Additionally, this type of system offers businesses greater flexibility in terms of how much they need to pay each month.
With Pay As You Go Workers Comp, businesses only have to pay for what they are using at any given time and can adjust their payments easily when needed.
Furthermore, because workers comp premiums are based on current wages rather than the total payroll number, businesses can save money by taking advantage of lower commissions when their employees’ salaries increase.
Finally, Pay As You Go Workers Comp helps create a safer workplace by ensuring that employers are up-to-date with their workers compensation insurance coverage and helping employers make sure that all safety regulations are met.
To get started, businesses should research the best-rated providers and compare their coverage plans, pricing structure, and customer service reviews.
Businesses should also investigate how much coverage they need for each employee and any additional benefits that may be offered with the plan.
Employers should also consider the convenience of setting up automatic payments through the provider to make sure their premiums are paid on time each month.
Ultimately, Pay As You Go Workers Comp provides businesses with an affordable way to stay compliant with workers compensation regulations and protect employees in case of injury or illness while on the job.
This is due to the fact that employers are required to pay for workers comp coverage on a regular basis and cannot take advantage of lower premiums that may be available if they were able to pay for an annual policy in advance.
Additionally, some employers may not have the cash flow necessary to sustain regular payments and may be unable to afford a comprehensive workers comp policy.
Lastly, not all states allow Pay As You Go Workers Comp, so employers in those states will have no choice but to obtain traditional annual policies or risk getting fined or having their business shut down.
Now that you know all about Pay As You Go Workers Comp, does it sound like something your business could benefit from? If you’re interested in learning more about how OCMI can get you the best workers comp rates, give us a call or fill out our online form to request a quote.
We’d be happy to answer any questions you have and help you get started with this cost-saving solution for your business.