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What is Pay As You Go Workers’ Compensation?

By June 15, 2017February 19th, 2021Business Insurance

Workers’ Compensation Insurance under the “pay-as-you-go” option allows you to pay your policy premiums based on your actual payroll, not an estimate of your annual payroll.  


Pay-as-you-go workers’ compensation is an alternative way of making your premium payments.   You can purchase or renew a policy with little money down, and pay your premium in smaller amounts spread over the course of the year.   There are fewer surprises at audit with large additional premiums or return premiums because the payroll is better managed during the policy term.  Any premium amounts due will be direct-debited from your business’ bank account.


The workers’ compensation conditions are not affected.   Your policy will still be audited, but will be based on actual instead of estimated payroll.  The audit will determine if your payroll and class codes are accurate and ensure that any subcontractors had workers’ compensation coverage during the audit period.


Most insurance companies now offer some form of “pay-as-you-go” for workers compensation.   


Please contact a Rue Insurance service representative at 800-272-4RUE to learn the options available to you.

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Scott Harrigan

About Scott Harrigan

Scott started his career in insurance in 1988 and joined Rue Insurance in 2004 as a Marketing Specialist focusing on creating effective risk financing and risk transfer programs for companies and non-profit organizations. In addition to this he is a member of the Rue Insurance educational team that provides ongoing professional development in critical insurance concepts and programs to Rue employees. About Scott | More Posts by Scott