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Pay As You Go Insurance

scottthebuilder's picture

Who is using Pay As You Go insurance?

How has it been? Does it really reduce your audit problems as they advertise?

I'm considering going to this and can get both GL and workers' comp with pay as you go billing tied to my payroll provider. Any input would be greatly appreciated. With the lower down payment and 26 installments because it is bi-weekly it seems almost too good to be true.


"Pay as you go" (post #201886, reply #1 of 18)


Pay as you go is a great tool for getting into a new policy without the heavy load up front as most policies require. That being said, you have to utilize a payroll processing service provider or software like Quickbooks Payroll to interface with the WC Carrier. If you already use QB its no big deal. If you don't, the choices are plentiful and people like the " or are two good examples of "Pay-as-you-go" producers for GL & WC.

There is a cost associated with processing the payroll if you use QB or WCshop/ADP. You need to check out what that will cost by comparison to what you are doing now and then you can see the full cost of this method. Typically small 1-3 men operations do this to keep the paperwork clean and file taxes and insurance (headaches) while other larger firms can see the benefits of HR services realized with PEO/ASO firms.(another topic).

William Workers Compensation Programs in Nashville

William (post #201886, reply #2 of 18)

You gave a very brief explanation, could you expand it a bit.  Compare the liability insurance to a standard policy with an audit once a year to determine actual cost.  Previous to this July I had liability coverage with State Farm.  For some reason I was told they were no longer offering this type of policy and so switched to Erie.  I now have my liability, truck and tools (replacement, not deprec. cost) insured with them.  I had the option to pay monthly/qtly/half.........seems like anything I wanted to set up.  Of course, each smaller payment had a service charge attached.  My qtly bumps the payment 5 dollars.  I get an audit once a yr for volume and proof of insurance provided by my subs.

What do you offer, I see that you inserted a link to your business.  And how does it compare to the above.  I had never heard of pay as you go.

A Great Place for Information, Comraderie, and a Sucker Punch.

Remodeling Contractor just outside the Glass City.


Pretty sure (post #201886, reply #3 of 18)

one or both of these guys are spammers. "Scott" posted the 'xact same thing on JLC.

ahhhh (post #201886, reply #4 of 18)

So, scottthebuilder set this up?  I see he's been a member for 5 yrs, be a [CUTE LITTLE PUPPY] for him to join the salesman.


I was truly interested in this new to me insurance.  I'd suppose it's more of a pay first, then you go, but still wondered the details.

Figured who better to ask for an "explanation" than the salesman.  Since the spamanators seldom come back, guess I may never find out.


You ever hear of this sort of operation?

A Great Place for Information, Comraderie, and a Sucker Punch.

Remodeling Contractor just outside the Glass City.


Not heard of it (post #201886, reply #5 of 18)

My GL is based on three variables, one being payroll, so they couldn't invoice me accurately based only on payroll. I do what everyone else does, I estimate my numbers at the beginning of each policy year, buy the policy, and then either pay or get a credit at audit. If I see partway through the year that I'm exceeding projections then I make plans to pay at the audit. 

Thats funny (post #201886, reply #6 of 18)

My grandfather gave me my first subscription to FHB. I have them all. I'm a 3rd generation contractor and have practiced my craft in 36 states. Currently a Certified Building Contractor and have been for 20 years. I drive a Sprinter with $40K worth of gear in the back. I was truly looking to get feedback on users opinion of a new payment type that I haven't tried. Here are some more links. I don't work for or endorse any. The graphic in my prior post hit home because I have received a $10K audit from an "estimated payroll". Haven't been here in a while and nobody responded so I asked on JLC. Damb you are jumpy. What have I missed lately. Has everyone gone that shallow?

I use QuickBooks and want some feedback on someone who has used their (or another) Pay-As-You-Go service and how their experience was.

Your response reminds me of the old Festool versus StupidGuide or whatever that copycat rail guide was.

Scott (post #201886, reply #8 of 18)

Your response reminds me of the old Festool versus StupidGuide or whatever that copycat rail guide was


I apologize.  I think there might have been a misunderstanding.  I am interested in what this pay as you go is.  That's why I asked the salesman to provide more information.

Thank you for providing those links.

I guess I shouldn't respond while panning the channels between baseball and Dancing with the Stars.


You are one well traveled guy.  Bet you've got stories.

A Great Place for Information, Comraderie, and a Sucker Punch.

Remodeling Contractor just outside the Glass City.


And I used to fly to jobs. (post #201886, reply #9 of 18)

Apology accepted.

Yes, I've had some pretty good gigs. Used to do a lot of store and set work. In the 90's we were flying to jobs (with Hilti guns and all). We had two 70# Hardigg military toolboxes per man that were inventoried and weighed 69 pounds each. You could carry three checked bags with no charges and they didn't make you take your boots off in security. Those were the days!!!!! 45 minutes early got you on a plane easily. 

I am only trying to find more info about this Pay-As-You-Go plan and the different providers and programs. I don't want a PEO, I just want to pay what I owe based on an actual number. I don't guess how many nails or 2X4's I'm going to use and adjust my estimate quarterly. I don't buy a years worth of diesel. Why should I overpay some company with a big fancy building to possibly provide something I may need in an undetermined quantity. I don't think this system is relevant anymore. The insurance agent/business owner model how it exists hasn't changed for 200 years. 

Look at GEICO and Progressive, direct insurers cutting out the agent middleman (The guy behind the "guess" system).

I save 22% on my car insurance with no agent. 

If my accounting software or payroll provider can connect me directly to an insurance carrier and I have to email someone when I want service that is fine by me. 

My insurance agent drives a black on black on black Cadillac Escalade that get's like 10 mpg. I might see him once a year and need a certificate that isn't on my yearly list maybe once a quarter. For that he gets 16%. He doesn't think pay-as-you-go is a good idea (none of his companies even offer it he says.....) 

I wonder why??????

Scott. (post #201886, reply #12 of 18)

I've been real satisfied with my coverage both from State Farm and now Erie...............

but then again, no claims whatsoever businesswise on either one.



Where's insurance boy?

A Great Place for Information, Comraderie, and a Sucker Punch.

Remodeling Contractor just outside the Glass City.


obviously , (post #201886, reply #10 of 18)

you've never used  "stupid guide"

and  the courts are still out on who the copycat was


but , that 's ok

most pay-as-you- go  insurance  is done thru payroll service.. like paychex


but ... another thing you want to check is specialist agencies

best deal i found in 35 years was  going with an agency that specializes  in construction contractors

Mike Smith Rhode Island : Design / Build / Repair / Restore


I think only wbeech1 could (post #201886, reply #7 of 18)

I think only wbeech1 could possibly be accused of spamming, and even his posts were in direct response to recent queries, and were reasonably appropriate in content (though it would have been better if he were a tad more up front about being a rep for the business he was touting).

I'm guessing that wbeech1 subscribes to some sort of board-watch service that looks for posts relevant to his business and notifies him.  This is far less objectionable (so far) than the spammers who just Google for posts of any vintage that mention their product category, then place irrelevant posts that only serve to tout their product, without providing any useful information.

Wbeech1's main negative at this point is that he has not (so far) come back to answer Calvin's query.  As we all know, the most useful information often doesn't come out until the second or third round of exchanges in a discussion.

Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed.  --Herman Melville

What the... (post #201886, reply #15 of 18)

Dan...a bit harsh don't you think?  Normally I prefer to give a reference to the services in my answers. I don't know about this copy cat, but I have been in the Insurance arena for over 20 years and thought I might contribute as simple advise (not advertise). I apologize for the delayed response that may have triggered your suspicions.

Actually, I think I was (post #201886, reply #17 of 18)

Actually, I think I was exceedingly fair.

Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed.  --Herman Melville

Calvin (post #201886, reply #14 of 18)

The variable is not in coverage as much as payment structure.  The markets are opening more products to the pay as you go structure but are having to redesign their actuary profiles.  I say this because of past most GL polices were based on receipts not on payroll.  That is a change; included in that, the need to endorse your other coveages like tools (floaters...etc). My experience in PAYGO comes from helping on the back end of program setup for carriers and providers. We write Captive/PEO/ASO programs for large firms and captive facilities.  I don't write PAYGO or even represent a firm who does...but have helped design the programs for a few.  End of the day, PAYGO can save time and hassle for GL & WC, but you may find need to obtain coveage seperatly to cover all of your company risk.

I would weigh the benefits and costs of the "total package and services" from your local broker/agent.


William at

Obviously (post #201886, reply #11 of 18)

Obviously these are the copycats.

Paychex/ADP is a joke. There fee schedule makes a Las Vegas pro look like a bargain for a long weekend. There are many other options. I just want to hear from people who have used them. I have been mostly steady but plan on traveling some this summer and don't know what winter will be like. I need to make some decisions and don't want to do the old "Estimated Premium" and 10-payment gig. In an industry where pinpoint cost projections can make or break an operation, I can't believe this has taken so long to catch on.

Hartford Insurance (post #201886, reply #13 of 18)

I use a payroll service and they are offering a pay as you go on WC through Hartford Insurance.

I haven't investigated it, mostly because the local agent that I buy my WC and Liability  from also refers a lot of work my way.

I do hate those quarterly premiums along with the yearly audit - but most annoying is if I owe more I get the audit results within two weeks - but if a credit is due me, it takes monthes.

Go figure.


Pay as you go (post #201886, reply #16 of 18)


I get it...going it alone can be cheaper.  But representation has its benefits to see what you might not know has changed or is changing.


William at