713-231-0740 PayAsYouGo@AIMins.net

Pay-As-You-Go Workers’ Compensation

for the Construction Industry What are the benefits of Pay-As-You-Go?Choosing Associated Insurance Managers

Pay-As-You-Go Workers’ Compensation

for the Construction Industry What are the benefits of Pay-As-You-Go?Choosing Associated Insurance Managers

Improve Your Cash Flow Eliminating Down-Payments!

As a contractor, you know how volatile your payroll can be from year to year, or month to month, or even week to week.

Traditional workers’ compensation insurance forces you to make large premium deposits, draining precious cash as well as to make fixed monthly premiums payments even though your payroll and cash flow can fluctuate wildly throughout the year.

When you switch with us you not only avoid this large premium deposits, but you also get competitive pricing, no-surprise premium audits, synchronized premium payment with your payroll cycle, and much more!

Take the first step to a Pay-As-You-Go Workers’ Compensation Insurance


Eliminate surprises with pay as you go Worker’s Compensation Insurance.

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Benefits of Pay As You Go Worker’s Compensation Insurance

Pay As You Go Enhances Cash Flow

Pay As You Go Workers’ Compensation from Associated Insurance Managers enhances your cash flow by eliminating the up-front deposit premium, synchronizing the payment of premium to your payroll cycle, and minimizing either return or additional premium at audit.  Since you will be making smaller more frequent premium payments based on the actual timing and amount of payroll, the insurance company does not need a deposit premium.  Also, since you are reporting actual payroll and paying the correct amount of premium for it, you are minimizing potential adjustments at audit.

No Up-Front Premium Deposit

Traditional workers’ compensation requires you to pay a large up-front premium deposit, perhaps 25% of the estimated annual premium for the coming year.  The balance of the premium is usually paid in nine monthly fixed installments.  And then, a couple of months after the expiration of the policy an audit is performed to determine the actual premium. Sometimes there is a return premium but, more often than not, additional premium is due.  Either way, this process wreaks havoc on your cash flow because of the large up-front deposit, payroll volatility, and the potential for large additional premiums at audit.

Synchronize it with your Payroll Cycle

The key to Pay As You Go Workers’ Compensation is being able to report, calculate and pay the actual premium with each payroll cycle.  Each of the insurance companies we represent have their own specific requirements but all of them are easy to comply with and generally fall into one of three types.

  • Approved Payroll System Integration
  • Approved Third Party Payroll Processing Provider
  • Self-Reporting

Regardless of the method used to report your payroll, it is very quick and easy.  The self-reporting option takes only a couple of minutes and the payment will automatically be setup for EFT.

And Best of All…No Surprise Premium Audits!

What Our Customers Are Saying

Don't just take it from us, let our customers do the talking!

I would highly recommend Rick Tucker to anyone who is looking for an honest and reliable person/company to handle their insurance needs.


Frequently Asked Questions

What is Pay As You Go Worker's Compensation?

Pay As You Go Worker's Compensation is an alternative method of calculating and paying worker's compensation premiums. It synchronizes the payment of premium with the payment of wages.

What Is Workers’ Compensation?

Worker’s Compensation is a no-fault insurance that protects both employers and employees from employee accidents or disease arising out of their employment as prescribed by state laws.

Coverage A – Medical & Indemnity provides coverage for statutory benefits including medical expenses, lost wages, and permanent disfigurement/disability payments.

Coverage B – Employer’s Liability pays all sums that you are legally obligated to pay because of bodily injury by accident or disease sustained by any employee arising out of their employment.

Most states mandate all employers, with certain exceptions, to provide worker’s compensation for the benefit of employees.  Texas is one of the few remaining states that does not mandate employers, except for public entities, to provide worker’s compensation coverage.  However, even though it is not mandated, every employer should have worker’s compensation coverage because of their statutory liability for employee’s injuries.

In Texas, worker’s compensation is the sole remedy. If an employer has worker’s compensation coverage and an employee has an injury, the employee’s only recourse is to file a worker’s compensation claim.  Without worker’s compensation coverage, the injured employee can pursue recovery through a personal injury lawsuit. And, the employer will not have the benefit of statutory limitations on damages.  Furthermore, the employer loses their right to common law defenses such as assumption of the risk, contributory negligence, “last clear chance”, and co-worker negligence.

Texas employers who do not carry workers’ compensation insurance coverage are required to report their non-coverage status and work-related injuries and occupational diseases to the Division of Workers’ Compensation (DWC). Employers who do carry workers’ compensation insurance coverage are required to report all known occupational disease and any work-related injuries that result in more than one day of lost time. Employers that fail to meet these requirements commit an administrative violation and may be subject to administrative penalties.Must notify employees and the state.

Some employers buy accident and health insurance policies or disability policies or create employer indemnification agreements with the belief they are less costly alternatives to workers’ compensation insurance coverage. Even though these policies may provide benefits to an injured employee, Texas law does not recognize them as substitutes for workers’ compensation insurance coverage. TDI rules even prohibit insurance companies from representing that alternative coverages are substitutes for workers’ compensation insurance coverage.

Unlike workers’ compensation insurance coverage, alternative coverages typically have specific policy limits on medical benefits for each covered employee. In addition, alternative coverages usually have shorter maximum payment periods than those provided by Texas workers’ compensation laws.

Employers that buy alternative coverages do not have workers’ compensation liability protections. They may be sued by their injured employees and lose their right to use key common-law defenses in the suit. Moreover, many alternative coverages do not provide coverage for judgments for pain and suffering, punitive damages, and attorneys’ fees.

Do I have to use a specific payroll provider?

No. Many payroll providers are already qualified and registered to utilize the Pay As You Go system. For those who are not registered, it is a relatively simple process to get registered. Additionally, if you do your own payroll in-house, you do not have to use a payroll provider at all.

What are the specific benefits of buying worker's compensation on a Pay As You Go basis?

In addition to the important benefits provided by a worker’s compensation policy, the Pay As You Go method improves your cash flow by:

1) our marketing service makes sure you are paying low, competitive rates;

2) eliminating large up-front deposit premiums;

3) synchronizing the timing and amount of your worker’s compensation premiums to the payment of wages;

4) it virtually eliminates the potential surprise of a large additional premium due at the end of the policy; and 5) it eliminates the long wait-time of a return premium at the end of a policy.


Eliminate surprises with pay as you go Worker’s Compensation Insurance.