Dallas-based BenefitMall is a payroll and benefits administration provider that takes great pride in their innovative solutions for different market sectors. They are especially proud of their pay-as-you-go workers’ comp solution that makes covering employees against work-related injuries more easily managed.
BenefitMall is not alone in offering pay-as-you-go workers’ comp. In fact, this new way of meeting state workers’ comp laws is gaining ground over traditional insurance policies. Companies are finding that pay-as-you-go is easier on their cash flow, better for the bottom line, and more than capable of meeting regulations.
If you are a business owner or manager struggling with workers’ comp, you might want to look into a pay-as-you-go solution. Below are a few key points explaining what it’s all about. You might find that pay-as-you-go workers’ comp is the solution you have been looking for.
A Way to Meet State Requirements
First and foremost, pay-as-you-go workers’ comp is a tool for maintaining compliance with state mandates. Almost every state in the union requires workers’ compensation in some form to protect employees injured or made sick on the job. Workers’ compensation insurance pays medical bills and replaces lost income.
Keeping workers’ comp costs low is important to the states. As such, many offer state-operated funds exclusively for this purpose. Companies can choose to work through the states or purchase private insurance. Pay-as-you-go is a private insurance option.
A Way to Pay in Sync with Payroll
Pay-as-you-go workers’ comp takes its name from the method by which companies pay their premiums. A standard workers’ comp policy is generally payed in one lump sum or via quarterly/semiannual installments. A pay-as-you-go solution involves making payments in sync with routine payroll processing.
For example, you may work with the payroll provider that offers a pay-as-you-go solution. You pay that provider a certain amount for the services they provide. Included in their fees would be an extra amount to cover workers’ comp premiums. That fee would be assessed every payroll run. This allows you to spread your insurance premiums across the entire year rather than having to come up with the cash all at once.
Pay Only What You Need
Insurance companies require businesses to estimate what their payroll will be for the coming year in order to assess premiums. With a pay-as-you-go solution, you are only paying based on your actual payroll at the time it is run. In the end, this means you are paying only what you need and nothing more. Pay-as-you-go eliminates inaccurate estimates. This could be very important if you operate a business that depends on seasonal hiring at certain times of the year.
You Will Probably Get a Better Deal
Perhaps the most attractive aspect of pay-as-you-go workers’ comp is the actual cost of insurance in the long run. For most companies, pay-as-you-go is a better deal dollar-for-dollar. Consider this: companies like BenefitMall deal directly with insurance providers to come up with attractive pay-as-you-go solutions. They have every incentive for giving payroll providers rates that are as competitive as possible in order to guarantee they get their fair share of the market.
Competition breeds lower prices and higher quality, even in the insurance industry. If there are three companies vying to be the pay-as-you-go solution offered by a nationwide payroll provider like BenefitMall, they are going to do everything they can to offer the best product possible. That translates into better and more affordable insurance for the employer.
Pay-as-you-go has revolutionized workers’ compensation insurance. No wonder so many companies are turning away from state funds and privately negotiated policies in favor of a pay-as-you-go solution.