Why choose pay as you go workers compensation insurance?

Updated: Jun 26, 2020

Pay-as-you-go workers’ comp insurance is trendy way of paying for workers comp. Ending up-front costs, reducing audit risks and outdated payment methods. Compared to an estimated annual payroll amount, pay-as-you go relies on real-time payroll to calculate workers’ comp premiums, resulting in more exact premium payments. This means less of a chance of paying too much throughout the year or having a premium adjustment at the end of the policy term due to an inaccurate reported payroll.

Pay as you go workers comp enables businesses to buy workers comp with little or no money down. The employer pays on a weekly or monthly basis. This improves cash flow, especially when compared to traditional workers' comp down payments, which typically requires a 25% deposit.


Another advantage is the ability to break your employee payroll up by class codes. Every employer is familiar with the nightmare matching workers comp class codes with payroll. Pay-as-you-go gives you the ability to break out the payroll assigned to each class code. This helps to mitigate the chance payroll assigned to your less expensive class codes ends up getting lumped in with your most expensive class codes.


Not all insurance companies offer and support a pay-as-you-go workers comp. If you want to convert to one that does, we have many to choose from.





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