According to the U.S. Small Business Administration (SBA), Office of Advocacy, there are nearly 29 million small businesses in the U.S. The SBA defines small businesses as having fewer than 500 employees of these small businesses, 80%, or 23.2 million, have no paid employees while only 20%, or 5.8 million had at least 1 or more paid employees. Additionally, there are 18,600 large businesses with 500 or more employees. Thus, the market opportunity for pay-as-you-go workers compensation is significant, nearly 6 million businesses and growing.

As a vendor in the pay-as-you-go billing space with close to 20 years of experience, we are often asked “is there a target premium or class of business for pay-as-you-go billing?” The answer is “yes, all sizes and types of business.” Each of our customer’s pay-as-you-go book of business reflects the respective carrier’s business appetite. If you write for small businesses, then you’ll have lots of small businesses on PAYGO, whereas if you write mid-size accounts, those accounts will likely be your primary PAYG customers. PAYG is not just for small business as many people think.  Mid-size and large employers also benefit from the billing product. In fact, InsurePay includes small, minimum premium policies of $500 and large policies exceeding $1,000,000 in premium. The following breakdown by premium of policies on InsurePay provides a better picture:

Another common question we are asked is “what are the most common class codes?” Providing specifics on class codes gets a bit more complicated since a single class code may have a different description depending on the carrier and/or the state. Again, all policyholders benefit from InsurePay due to the cash flow advantages, convenience of automatically paying each pay period based on actual payroll, and the lack of surprise at audit time. So, whether you are a contractor, restaurant, professional, retail store or manufacturer, PAYGO is good for you.

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