Advantages of ‘Pay-as-You-Go’ Workers’ Comp
With just a little digging online, you’ll likely find dozens of providers offering workers compensation insurance on a pay-as-you-go basis. In doing your homework, be sure to keep this in mind:
Pay-as-you-go workers comp is simply an alternative way of making your premium payments. It’s not different insurance, and it doesn’t replace your workers comp insurance or your responsibility to pay premiums, collect/issue certificates of insurance from subcontractors, etc. Your coverage must still be provided through a state-approved workers comp insurance carrier or approved self-insured source.
That said, there are compelling reasons for small businesses to consider the pay-as-you-go method of paying workers comp premiums. You can learn about a few of the major ones in this module.