In this segment we will review the different programs available for Workers Comp coverage. Three of the most popular programs are the pay-as-you-go program, the Up Front Discount Program, and the Dividend Program.
The cost of Workers Comp coverage is pretty straight forward when it comes to determining your rate. Workers comp coverage is determined on your payroll, employee type(s), and experience modification. However, there are programs available with different perks for qualified businesses.
Program #1 – Pay as you Go
The pay-as-you-go program is designed and tailored to small to medium sized businesses and works in conjunction with your payroll system. A company with inconsistent payroll due to a high turnover rate or expanded hiring would be best suited for this type of program. Since traditional WC bases your rate off of estimates, you are subject to a yearly audit of your payroll. Not only does this cost you time, it can potentially cost you additional premium if your payroll is underestimated. Also, since your payroll is directly linked, with pay-as-you-go you won’t have to worry about deposits, late fees or finance charges on your policy. Get A Quote
Program #2 – Up Front Discount
This one is a traditional Workers Comp policy that comes with the discount of up to 15%. For businesses with little to no employee turnover, this would be a good option. Get A Quote
Program #3 – Dividend Program
This program is dependent upon group performance, but is also geared towards businesses with little to no employee turnover. The discount can range from 0% all the way to 40%. Since it’s group dependent, you can have zero claims and still not receive a discount. Get A Quote
So… What program is Right for you?
It’s mostly dependent on your businesses employee turnover/growth rate.
If you are a business that has high turnover rate or are growing at a rapid pace, then the pay-as-you-go program is the right choice.
If you are a business with steady payroll then you will need to determine your risk tolerance before making a choice. You can either take the up to 15% discount up front or choose to receive a dividend that can be anywhere from 0% – 40%. Get A Quote