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PAY-AS-YOU-GO for Workers’ Comp

Now is the time.

PAY-AS-YOU-GO for Workers’ Comp

If you haven’t been discussing “pay-as-you-go” for Workers’ Comp with your clients, there’s no better time than right now. Many employers, hit hard by the pandemic in 2020, are struggling with cash flow and still experiencing fluctuations in payroll — which ultimately impacts the premium they pay for their Workers’ Compensation insurance.

Available through most commercial insurance companies these days, pay-as-you-go options typically feature a low-to-no down payment. Premium is due in smaller increments each pay period, and payments are based on precise payroll (instead of estimated) which minimizes surprises at audit time. It’s a win-win for you and your clients!

For employers not working with a payroll service provider, some insurers offer a “self-reporting” option where payroll data is uploaded to an insurer by the policyholder through an internet portal each pay period. Same concept. Similar benefits. And a great choice for your clients with in-house bookkeeping.


  • While carrier platforms differ, the majority involve a digital interface with participating payroll service providers.
  • When your client is working with one of the providers, payroll and employee data is transferred from the provider to the insurance company each pay period.
  • Premium is then calculated and, in most cases, debited by the insurance company from the client’s bank account.
  • New hires, layoffs, or changes in job classifications during the policy term are taken into account, so payroll/premium remains precise.
  • The policy is still audited to confirm classifications and other changes but modifications to payroll/premium are usually minimal.

Berkshire Hathaway Guard

Berkshire Hathaway GUARD has been at the forefront of pay-as-you-go billing for Workers’ Comp, so it’s no wonder we have relationships with the leading payroll service companies across the country. Contact us for more information or visit

The information contained herein is not all-inclusive but intended to provide a general overview for marketing purposes. The information may not apply to all Berkshire Hathaway GUARD Insurance Companies or in all states and should not replace the guidance, advice, or recommendations from licensed insurance or legal professionals or other industry experts. All state and federal rules/regulations apply. © July 2021.



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