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What is Pay-As-You-Go Workers’ Compensation Insurance?

Pay-as-you-go workers’ compensation provides employers with the option of paying workers’ compensation insurance premiums in installments, specifically with each payroll run. Employers are required by law to carry workers’ compensation insurance to cover the costs of medical expenses for employees who are injured or become ill at work. Pay-as-you-go workers comp ensures employers only pay for the amount of coverage needed based on the number of employees on payroll. This method protects cash flow, maintains compliance and relieves employers of paying increased upfront costs.