Workers comp can be a headache of an expense if you’re paying an annual policy premium in one lump sum. Even spaced across quarterly payments, you have to contend with large cash payments out, and that can be disruptive. You also have to worry about buying too much coverage and hurting your own bottom line. That’s where third party workers comp coverage comes in. When you work with providers to calculate and report your needs, you can process premium payments with your payroll, making sure you always have exactly the coverage you need. The result is a smaller, easier to predict expense that stays as conveniently as small as possible according to Insure My Work Comp.
An End To Premium Deposits
With no premium deposits to bind your payments, this option is more flexible with respect to your reserve. While you might look forward to a rebate on years you overpay with a deposit, that doesn’t help you in the month-to-month task of managing cash flow. Other advantages to moving over to third party reporting are easy to spot, too. There’s no worry about an audit hitting you with an expense unexpectedly when you process your premium at the same time you process payroll. On top of that, there’s no worry about administration for the regular payments, because they are deducted automatically as the premium is calculated. You just have to set up the authorization for the automatic payments, then you’re covered.