Are Your Premiums in Line with Your Business?
With our competitive workers compensation rates, you get the right coverage and save money too.
With our competitive workers compensation rates, you get the right coverage and save money too.
An increasing number of companies are turning to pay-as-you-go workers’ compensation in order to eliminate upfront costs. Instead of paying a premium based on an estimated annual payroll amount, this premium is calculated based on the actual payroll of your employees. The end result is a more accurate premium amount and no adjustments are to be made at the end of the year.
Keep in mind that pay-as-you-go workers’ compensation is simply a different way of making premium payments. It does not replace workers’ compensation insurance or relieve you of your responsibility to pay premiums. All the same rules apply, which means that your coverage must either be provided by a state-approved career or an approved self-insured source.
Annual Audit Reports
Because your premiums are based on actual figures instead of estimates, your company will be protected from audit exposure. Traditionally, you will provide a budgeted payroll for the next policy and your premium will be calculated based on that estimate.
With pay-as-you-go, an audit will still be carried out — the only difference is that it will be based on an actual instead of estimated payroll. This audit will verify whether your class code and payroll are accurate as well as ensure that workers’ compensation covers your subcontractors during the audit period.
Process Policy Renewals
Workers’ compensation insurance is necessary for many industries. However, managing the paperwork can be tricky. When it comes to renewing your policy, our solution at Tesseon can take care of the entire process for you. This will start with a quick review of your company to find out whether your business needs have changed and whether you have lost or gained any employees in the year.
From there, we will double-check your payroll and job classifications, allowing us to determine whether your workers’ comp policy needs to change. This can involve a change of provider. Once all the relevant factors have been determined, we will renew your policy on your behalf, keeping in mind the most suitable type of coverage for your business needs.
Calculation of Premium
In order to start using pay-as-you-go workers’ compensation, you will need to have an accurate idea of your annual payroll. If you have been paying premiums based on an estimate previously, you may have some work to do here. You do not need to worry about that when you engage our pay-as-you-go workers’ compensation services at Tesseon.
We have helped many of our clients make the transition successfully, and we are able to help you calculate your annual payroll accurately. Making the switch will help you to avoid making upfront lump sum payments. Each pay period, your census data will be sent to carriers, saving you from having to do the hard work during year-end audits.