Top 3 Reasons to Purchase a Pay as You Go Workers' Comp Policy
If your business has one or more employees, you’ll need workers’ compensation insurance for your company. A workers’ comp policy includes protection for your workers’ wages or compensation should they get injured on the job, as well as liability protection for you as an employer should a lawsuit be filed against the company. Each state has it’s own rules and regulations when it comes to workmans’ comp insurance. It’s best to become familiar with the business insurance laws for the state your company resides in.
Here are the top 3 reasons why small and medium size business owners decide on a pay as you go workers’ compensation program:
1. Improve Your Cash Flow Management
Most workers’ comp insurance policies require you make a large premium payment up front… before you even know what your payroll expenses will be for the year. How would you like to pay your insurance premium throughout the year… each time you process your payroll? Sound good? That’s the beauty of a pay as you go workers’ comp program. Instead of a lump sum payment, now your premium is calculated based on your actual payroll data and not an estimate. Since your premium is collected electronically during payroll processing, there are no checks for you to write. How easy is that?
2. Protect Your Business Investment
Workmans' comp insurance protects your business against work-related injuries as well as occupational diseases or illnesses that are contracted at the workplace. Employers can be liable even in instances when an employee may have put themselves at risk for the injury or illness. In addition to protecting your business, PrimePay’s insurance partners can provide you with more than just an insurance policy… they can help you make your workplace safer. Our insurance partners can work with you to create a safer, more productive workplace as well as facilitate prompt, quality care if an employee is injured.
3. Safeguard Your Employees
In the event that one of your employees is injured on the job, his or her claim is filed with the insurance company who is responsible for the medical and disability benefits. Specific workers’ compensation benefits may vary from state to state but most policies provide employees with the following benefits for on the job injuries:
- Lost wages (sometimes up to two-thirds of the employee’s salary)
- Reimbursement for medical treatment
- Rehabilitation necessary for the employee to return to work
- Death benefits for surviving family members