While every state requires some form of workers compensation insurance for companies with employees, the costs can often become exorbitant. A pay as you go workers comp plan is one way to control some of these costs. In addition to payment options, a risk management plan may be the most effective way to control costs.
The reason an effective risk management plan helps control costs is that it reduces the risks for employees. For example, a thorough safety plan in a warehouse helps limit injuries to employees lifting objects, operating forklifts, unloading trucks or moving through shelving systems. Fewer injuries mean fewer claims filed which means lower premiums. Look for ways to mitigate risk by implementing effective safety policies and procedures.
As seen on insuremyworkcomp.com/, there are different ways to pay for the insurance. While some insurance companies offer only lump-sum payments, others offer a pay as you go option. This second option allows the company greater flexibility in payments because the payment is taken at payroll. Your company can better budget for payments rather than coming up with a large sum once a year.
A pay as you go workers comp plan may not work for every company. With the options available, owners can choose the best option to provide their employees with this necessary coverage.