Workers’ Compensation Insurance Defined
The purpose of worker’s comp is to cover an employee’s medical costs and lost wages due to any work-related injury. Workers’ comp is required by law and governed by individual states.
The concept of compensating workers for injuries assumed on the job has existed in some form or another for a surprising number of years. Thousands, in fact. Payments for injury or loss of limb date back to around 2000 BC. Though the extent of protection for workers has differed in every culture throughout the last forty centuries, it’s not a new idea.
Why You Want Workers’ Comp
Companies don’t deliberately set out to endanger employees and most organizations implement safety precautions to prevent workplace injuries. But accidents are unplanned. The good news for businesses is the mandatory expense comes with several employer protections.
Workers’ comp is considered an “exclusive remedy” because employees agree to the promise of timely payments for job-related injuries instead of filing a lawsuit. Coverage not only protects your employees, it limits your exposure.
Without the insurance, employees can file civil lawsuits against their employer. Unless negligence is to blame, workers’ comp will keep business owners from being held personally liable and owing sizable settlements.Employers who disregard the law face stiff fines and even criminal charges. For more information about state regulations, access links to your state official here.
How Pay-As-You-Go Service Helps Employers
When employers delve into the world of workers’ comp they often wonder why the term “comp” doesn’t stand for “comp”-licated. While well-intended, the complex rules governing coverage, codes, and proper classifications can flap even the unflappable. The calculations used to determine the cost of workers’ compensation coverage are based on the type of work, industry, and number of employees, and can be easily misinterpreted.
It takes dedication and focus to grow a company and consistently achieve organizational goals. Managing workers’ comp on top of everything else a company handles can be stifling. If you’re looking for ways to streamline processes and maximize productivity, Pay-As-You-Go workers’ compensation may be the solution you need.
Consolidating workers’ comp payments with payroll simplifies management for employers. Instead of paying insurance invoices separately, the premium is automatically deducted with each payroll.
Pay-As-You-Go offers other these valuable benefits businesses need to better manage coverage, avoid risk, and stay compliant.
- Cash flow – Spread out your workers’ compensation payments and improve budgeting and cash flow.
- Convenience – Each pay period, you can rest easy knowing your wage data is automatically transmitted to your insurance carrier.
- No down payments – Keep money earning interest in your own account instead of paying big down payments.
- Quality insurance carriers and coverage – Insurance coverage provided by the largest, and highest-rated carriers offers the quality you need at competitive rates. You can also access expert insurance industry support whenever questions arise.
- Visibility into total costs – Comprehensive reports are provided each pay period that shows gross wages, exempt wages and premium totals for each employee. The reports provide insight into your insurance costs and help you prepare for the future.
- Risk reduction – Pay-As-You-Go lets you Pay-What-You-Owe! When you pay premiums based on actual payroll figures, you won’t have end-of-year audit surprises.
Are You Eligible To Take Advantage Of Pay-As-You-Go?
The Pay-As-You-Go service is available in all US states except Ohio, North Dakota, Nevada, Washington, and Wyoming.
Workers’ comp is a required part of doing business, but it doesn’t have to be a burden. Would you hire an insurance expert to run your sales team? Probably not. Leveraging tools and services provided by experts designed to improve complex processes lets you focus on running your business.
How Paycor Can Help
Every employer needs to protect themselves, their employees and their cash flow. Contact us to see how your business can benefit from a Pay-As-You-Go workers’ comp plan.