If you have been looking into purchasing workers compensation insurance for your business, you might have assumed that you will have to pay for coverage upfront. Even though this is the case with many policies, there are a lot of providers that offer "pay-as-you-go" options. As the name suggests, you can make payments along the way for your insurance coverage rather than paying for it all at once. This can be beneficial for a few reasons; these are two of the top reasons why you might want to choose this type of workers compensation insurance for your business.
1. Skip the Guesswork
When purchasing a traditional workers compensation insurance policy, you often have to estimate your payroll. Later on, you could be audited, and if you didn't do a good job of estimating and actually underestimated, you could have problems. In a similar vein, you might find that you overestimated and that you are paying too much for your workers compensation insurance. Both things are probably things that you want to avoid. Luckily, with pay-as-you-go coverage, you do not have to worry about the hassle of estimating your payroll for the entire year, since you'll be paying as you go along and can make adjustments as necessary. This can help you avoid having issues if you get audited and can also help you ensure that you aren't paying for more coverage than you need. Instead, you will have perfectly tailored workers compensation coverage that is right for your company at all times.
2. Increase Your Cash Flow
Spending the money for a workers compensation insurance plan for the entire company can be incredibly costly. Since you probably have a lot of other costs that you have to worry about for your business, this might be something that you want to avoid. In the past, spreading out payments was not usually an option. Now, though, you can make payments on your schedule, allowing you to increase your cash flow and helping you to avoid spending too much capital on insurance coverage at one time.
As you can see, even though some people do prefer to go the more traditional route when buying workers compensation insurance, going with a pay-as-you-go plan can be a much better option. If you talk to your insurance company, you can find out more about this type of plan, and you can determine if it's truly the most beneficial option for your company. To learn more about your options, contact an insurance agency like Brown & Brown of Prescott.
Share14 September 2017
How well do you understand your insurance policy? Although it might seem like something that would be easy to figure out, insurance policies can be incredibly complicated, which is why everyone should invest a little time into reading their policies. I started focusing more and more on insurance policies a few years ago, and I was able to completely overhaul my personal level of coverage. This website is all about understanding insurance policies and qualifying for the right plans. Check out this blog for great advice that might help you each and every day. You never know when you might need it.