Friday, February 4, 2011

"Pay-As-You-Go" Workers Compensation Program

If you are a business owner with employees, you are very aware of the requirement to carry Workers Compensation Insurance.  The purpose of this insurance is to cover an employee's payments of medical care and rehabilitation of illness or injury endured while on the job.  It may also cover lost wages of that employee during the period of time which they are unable to perform their duties.  However, those lost wages will not be fully reimbursed by the insurer, but will rather cover a portion of wages.  Benefits are usually paid at 66 2/3% or a total of two-thirds of your normal salary.  Typically, an insurer requires proof of a definitive incident which has caused the injury in order to pay claims or benefits of the policy.

Now that you have a brief background and understanding to worker compensation, we want to advise you on the products and services Liberty Insurance Services offers:


Liberty introduced the "Pay-As-You-Go" Workers Comp program into our product line about six months ago.  This payment plan offers employers the ability to eliminate the large down payment (can be as high as 40%-50% with traditional policies) at policy inception and most often eliminates the need for chargebacks and audits for increased payroll at the end of the policy year.

Workers Comp quotes are based on an employers stated payroll for particular job description.  It is quoted using the payroll per hundred and the insurance company's rates for the stated class or job duties.  If the payroll increases throughout the course of a policy year, the employer could owe a large amount of money to the insurance company.  More simply, the higher your payroll, the higher your Workers Comp premiums will be.

Pay-As-You-Go has been developed for the benefit of the employer and company requesting the policy.  It will eliminate your large down payment which inevitably puts more Cash Flow back into the pocket of the owner and the company.  If your premium for Workers Comp is approximately $50,000 per year, your first payment with traditional plans can be up to $25,000 depending on the down payment requirements.  "That's a lot of money!"  With Pay-As-You-Go, your first payment will be based on your weekly, biweekly, or monthly payroll.  You simply submit a payroll sheet to our processing department and they advise of the premium for the period based on what you have paid your employees.  "Yes, it's that easy..."

This payment program can be very beneficial for companies with fluctuating seasonal staffing.  Companies such as landscapers, roofers, excavators, carpenters, etc... often have slow months during the winter seasons.  Typically, if your employees are not working, your company is not bringing in revenue which can make it difficult to pay insurance premiums in these off months.  With our Pay-As-You-Go program, if you don't have any payroll for a particular, week, month, or couple of months; YOU DON'T OWE PREMIUM.

Liberty Insurance Services Pay-As-You-Go program now applies to General Liability policies as well.  Call Us Today for A Free Quote*.  We can quote your policy under this program with many insurance carriers to find you the Best Rates available.  Policies can be put in place in as little as 2 days. 

Office: (215) 331-7382    

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