Pay-As-You-Go Workers' Comp for contractors
Pay-as-you-go workers' comp ties your premium to actual payroll each period — no large down payment, no audit surprises. Ideal for contractors with variable or seasonal workloads.
What it covers
- Workers' comp premium calculated on actual payroll each period
- Automatic premium deduction after each payroll run
- No large upfront down payment required
- Minimal year-end audit exposure
- Integration with common payroll platforms
- Available for most contractor trades
Who it's for
- Contractors with seasonal or variable workloads
- Growing contractors whose payroll changes month to month
- Contractors who've been burned by large audit bills
- Any contractor who wants better cash flow management
Why CCA
- We match you with the right PAYG program for your trade and payroll platform
- Transparent pricing — you always know what you're paying and why
- Switch from lump-sum to PAYG without gaps in coverage
Common questions about pay-as-you-go workers' comp
After each payroll run, your payroll processor reports wages to the WC carrier. The carrier calculates your premium based on actual wages paid and debits it automatically. You pay for coverage based on what you actually spent on labor — not an estimate from the beginning of the year.
It significantly reduces audit exposure because the carrier already has accurate payroll data. Year-end audits under PAYG are typically minimal — just a reconciliation of any remaining differences.
Common platforms like Gusto, QuickBooks Payroll, ADP, and Paychex are typically compatible. We'll confirm which carriers offer PAYG programs compatible with your specific payroll system.
Not necessarily — the underlying rate is the same. The difference is in how you pay it. PAYG spreads cost across the year and eliminates the upfront down payment, which improves cash flow.
Yes, typically at renewal. In some cases we can move you mid-term. Call us to discuss your timeline.
Cost varies by trade, state, payroll size, and loss history. Ghost policies typically run $800–$2,500/year. Standard policies are rated per $100 of payroll at rates that vary by class code. We quote your specific situation in about 15 minutes.
Yes. Contractors Choice Agency is licensed in all 50 states and writes workers' comp for contractors anywhere in the country.
About 15 minutes for most trades. Have your trade type, payroll estimate, and employee count ready. Hard-to-place risks may take a day or two to place with the right markets.
Often yes. We have admitted and surplus lines markets for contractors with high experience mods, prior losses, OSHA citations, and other issues standard carriers won't write.
If you have employees, you need a real policy. If you're a sole proprietor with no employees who simply needs a certificate for a GC, a ghost policy is the right fit. We'll help you figure out which one applies to your situation.
A.M. Best ratings reflect a carrier's financial strength. We place coverage with A-rated carriers so you can be confident the policy will pay if a claim happens.
Yes. Roofing, demolition, framing, and other high-hazard trades are our specialty. We have markets that write these trades where other agencies can't help.
A waiver of subrogation prevents your WC carrier from suing the general contractor after paying a claim. Most GCs require this endorsement. We add it to your certificate same day.
Trade type, payroll estimate, employee count, states where you work, and any loss history. More detail means a more accurate quote, but we can start with the basics.
Yes. Short-term or project-based workers' comp policies are available for contractors who need coverage for a specific job rather than a full year. Call us and describe your project.
A lump-sum policy requires a large down payment at the start of the year. Pay-as-you-go spreads your premium across each payroll cycle based on actual wages. PAYG is better for contractors with variable workloads; lump-sum is simpler for stable payrolls.
If your subcontractors can't provide certificates of insurance, the carrier may add their payroll to your audit. Always collect certificates from every sub. We help contractors understand audit exposure before the audit happens.
Yes. We write new ventures and startups. Without loss history, you'll be rated on industry averages, but coverage is available for day one.
A missed payment can result in a lapse in coverage and loss of your certificate. If this happens, call us immediately — we can help reinstate or replace coverage quickly.
Pair it with related coverage
Need workers' comp today?
Get a same-day workers' comp quote from specialists who understand the contractor market — ghost policies, pay-as-you-go, annual policies, and same-day COIs.