ADVERTISEMENT
  • About
  • Contact
  • Testimonials
  • Demographics & Advertising Rates
Monday, January 18, 2021
Search
    Generic filters
    California Business Journal
    56 °f
    Los Angeles
    60 ° Tue
    65 ° Wed
    62 ° Thu
    57 ° Fri
    51 ° Sat
    51 ° Sun
    • Front Page
    • Business
      • Insurance
      • Real Estate
    • Finance
      Nicholas Yrizarry

      In Perfect Alignment

      Invest-in-Your-Childs-Future

      Start Investing Now For Your Child’s Future

      IMG 8554 - From a “Wish List” to a “Reality List”

      From a “Wish List” to a “Reality List”

      ScamKeyboard

      5 All Too Common Investment Scams (and How to Avoid Them)

    • People
    • Featured
      Silicon V Real Instituto

      The Entrepreneurs ‘Angell’

      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Flags-of-the-world

      The Impact of Covid: Racing to Buy Second Citizenships

      Photonic Chip

      The First Photonic Chip Has Arrived. What Does That Mean For Augmented Reality?

      Supreme Court Sports Betting

      California’s Bid for 2022 Sports Betting Legislation

    • Technology
      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Plaxonic Technologies Innovate

      Plaxonic Technologies: Leading Innovation

      tech devises of the future - Latest Devices to Make Our Lives Easier

      Latest Devices to Make Our Lives Easier

      hands of business people typing on a keyboard - Should You Start An Online Business: 4 Things To Consider First

      Should You Start An Online Business: 4 Things To Consider First

    • Law
      law books

      Career paths available with a law degree

      background-check

      How Do Background Check Sites Find Your Information?

      hurricane

      Weathering the Storm

      tower-bridge-london-england

      How to apply from the USA to one of the most famous law universities in the UK

    • News
      AB3088

      California COVID-19 Rent Relief Policies Economically Unsustainable

      american-flag

      Dreamers Won Full Restoration of DACA…What Now?

      Airplane Landing

      London Heathrow one step closer to controversial third runway

      Payment Gateway Online Payment Services

      California Mutual Partners with Invoice Cloud to Improve Insurer’s Efficiency and Simplify Process for Policyholders

    • Human Interest
      • Food
      • Art & Culture
    • Education
      MacBook

      Enhance Your Tech Needs With Quick Decluttering Maxims

      Monetize student blog

      When to Monetize Your Student Blog & How to Do It?

      Office Equipment

      4 Pieces of Office Equipment that Will Make Life Easier

      San Diego skyline

      Insider Corner: David Ebrahimzadeh Discusses The 10 Best California Towns to Invest In

    • Health & Fitness
      Eesha Patel feature

      Multi-Dimensional Reality

      166521182

      One Hour Each Morning for the Remaining 23

      The Surprising Link Between Gut Health and Mental Health - The Surprising Link between Gut Health and Mental Health

      The Surprising Link between Gut Health and Mental Health

      87 CBN vs CBD How Are the Benefits Different - Commonly Asked Questions About CBD Oil in the USA

      Commonly Asked Questions About CBD Oil in the USA

    California Business Journal
    • Front Page
    • Business
      • Insurance
      • Real Estate
    • Finance
      Nicholas Yrizarry

      In Perfect Alignment

      Invest-in-Your-Childs-Future

      Start Investing Now For Your Child’s Future

      IMG 8554 - From a “Wish List” to a “Reality List”

      From a “Wish List” to a “Reality List”

      ScamKeyboard

      5 All Too Common Investment Scams (and How to Avoid Them)

    • People
    • Featured
      Silicon V Real Instituto

      The Entrepreneurs ‘Angell’

      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Flags-of-the-world

      The Impact of Covid: Racing to Buy Second Citizenships

      Photonic Chip

      The First Photonic Chip Has Arrived. What Does That Mean For Augmented Reality?

      Supreme Court Sports Betting

      California’s Bid for 2022 Sports Betting Legislation

    • Technology
      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Plaxonic Technologies Innovate

      Plaxonic Technologies: Leading Innovation

      tech devises of the future - Latest Devices to Make Our Lives Easier

      Latest Devices to Make Our Lives Easier

      hands of business people typing on a keyboard - Should You Start An Online Business: 4 Things To Consider First

      Should You Start An Online Business: 4 Things To Consider First

    • Law
      law books

      Career paths available with a law degree

      background-check

      How Do Background Check Sites Find Your Information?

      hurricane

      Weathering the Storm

      tower-bridge-london-england

      How to apply from the USA to one of the most famous law universities in the UK

    • News
      AB3088

      California COVID-19 Rent Relief Policies Economically Unsustainable

      american-flag

      Dreamers Won Full Restoration of DACA…What Now?

      Airplane Landing

      London Heathrow one step closer to controversial third runway

      Payment Gateway Online Payment Services

      California Mutual Partners with Invoice Cloud to Improve Insurer’s Efficiency and Simplify Process for Policyholders

    • Human Interest
      • Food
      • Art & Culture
    • Education
      MacBook

      Enhance Your Tech Needs With Quick Decluttering Maxims

      Monetize student blog

      When to Monetize Your Student Blog & How to Do It?

      Office Equipment

      4 Pieces of Office Equipment that Will Make Life Easier

      San Diego skyline

      Insider Corner: David Ebrahimzadeh Discusses The 10 Best California Towns to Invest In

    • Health & Fitness
      Eesha Patel feature

      Multi-Dimensional Reality

      166521182

      One Hour Each Morning for the Remaining 23

      The Surprising Link Between Gut Health and Mental Health - The Surprising Link between Gut Health and Mental Health

      The Surprising Link between Gut Health and Mental Health

      87 CBN vs CBD How Are the Benefits Different - Commonly Asked Questions About CBD Oil in the USA

      Commonly Asked Questions About CBD Oil in the USA

    Search
      Generic filters
      California Business Journal

      Reimagining how workers’ compensation insurance is priced, purchased and maintained

      “It’s going to erupt” — Dennis Dix, Cerity’s Chief Operating Officer

      by Josh Rosen, Staff Writer, California Business Journal
      A A
      Can I Choose My Own Doctor after a Delaware Workplace Injury - Reimagining how workers’ compensation insurance is priced, purchased and maintained
      Share on FacebookShare on Twitter

      It was only 20 years ago when consumers started buying personal insurance online — and then brands like Geico and Progressive suddenly became colossal heavyweights dominating their industry.

      Now, Cerity is doing the same for worker’s compensation insurance.

      “Research shows that most businesses are still buying insurance the old-fashioned way and we know that will change completely. With this recent economic downturn, and the move toward remote working, we’re seeing the momentum pick up as businesses are quickly adopting new online business platforms like ours,” says Dennis Dix, Cerity’s Chief Operating Officer.

      So are small business owners ready to purchase worker’s comp insurance online too? “It’s going to erupt shortly,” says Dix, who is charged with reimagining how workers’ compensation insurance is priced, purchased, and maintained. “In insurance,” he adds, “nothing happens quickly. It took us over a year to get our regulatory approval to operate in California. So, if you want to be ready to go when the pendulum starts to swing, you have to start before buying behaviors have changed.”

      Spreading rapidly across the country, Cerity is now operating in 39 cities. “The is pendulum swinging,” Dix says. “We’re addressing the issues that penalize small businesses.”

      To that end, Dix highlights three points that small businesses can do lower their insurance costs. The first is switching to a “pay-as-you-go” billing method.

      “A pay-as-you-go system is the best billing method for small business workers’ comp policies for a few reasons — the first of which is small business owners only have to pay premiums when they pay employees,” he says.

      In the current pandemic with its past and possibly future lockdowns, a pay-as-you-go system helps businesses better manage cash flow because “business owners don’t pay premiums when the business is closed,” Dix says. “Remember, work comp is only required if your people are working. So, if they’re not working, you shouldn’t have to pay more.”

      The pay-as-you-go plan binds the insurance to the payroll, and the amount that a company owes for insurance is calculated only when it is paying employees. “Businesses get tremendous benefits from this billing method — the real value here is that the business only pays the premium when they pay employees,” Dix says.

      Related

      MacBook

      Enhance Your Tech Needs With Quick Decluttering Maxims

      January 18, 2021
      Office Equipment

      4 Pieces of Office Equipment that Will Make Life Easier

      January 15, 2021
      Load More

      Traditional policies provide an annualized quote and are paid with installments. When PayGo policies are calculated they result in a “percentage of payroll” as the price.

      –Traditional: $500,000 estimated annual payroll; $1,200/year = $100/month

      ADVERTISEMENT

      –PayGo: Rate of 0.0024 ($1,200 / $500,000); 0.0024 * payroll during the pay period = amount due)

      Dix’s next point: Small businesses can reduce the revenue or square footage on their liability policy as some insurance companies price liability coverage by square footage.

      “If a business has temporarily closed its operations, it can remove that square footage from the policy completely, the way someone might take a car off their insurance if they know that it won’t be driven,” Dix says.

      Later on, of course, the business can add the square footage back to the policy.

      If a business is forecasting lower sales, its insurance carrier can incorporate the new forecast in the price of the policy.

      “The upside to this option is that you can continue to operate your business ‘as-is’ but with lower revenue,” Dix says.

      Lastly, Dix’s third point: Small business owners can request a payroll endorsement on their workers’ compensation policy.

      “Worker’s compensation is a company’s largest insurance expense,” Dix says. “If you’ve reduced payroll or expect you will, your insurance company can process a ‘payroll endorsement’ to the policy.

      This payroll endorsement can immediately lower the amount a business owes for the policy term. The full calculation for workers’ comp premium is fantastically confusing, yet all are based on “estimated annual payroll.” This is the amount of payroll a business expects to pay all employees within a twelve-month period.

      For businesses with worker’s comp, insurance companies perform an “audit” at the end of the policy term to compare “estimate” to “actual” and true up the payments. Under certain circumstances, the insurance company may refund premium already paid. “It’s rare, yet if the operation is near the end of its policy period, has already paid the entire premium, and its new estimated annual payroll is lower, the entity overpaid, so you will have to request the refund as many carriers prefer to handle these payments at the end of the policy term.”

      Copyright © 2020 California Business Journal. All Rights Reserved.

      Cerity, CalBizJournal.com
      Cerity, CalBizJournal.com
      Cerity, CalBizJournal.com
      Cerity, CalBizJournal.com
      Tags: CaliforniaCerityconsumersDennisemployeesinsuranceinsurance companiesonline businesspayrollregulatorysmall businesssmall business ownersworker’s compensation insurance.

      Get real time update about this post categories directly on your device, subscribe now.

      Unsubscribe
      ADVERTISEMENT
      Previous Post

      The Software That All Small and Medium-Sized Businesses Need

      Next Post

      The Final Score

      Josh Rosen, Staff Writer, California Business Journal

      Josh Rosen, Staff Writer, California Business Journal

      Josh Rosen writes for the Southern California News Group and California Business Journal. He has two Bachelor of Arts degrees in Journalism and Integrated Media & Humanities from Biola University.

      WHAT TO READ NEXT

      MacBook
      Education

      Enhance Your Tech Needs With Quick Decluttering Maxims

      January 18, 2021
      Monetize student blog
      Education

      When to Monetize Your Student Blog & How to Do It?

      January 16, 2021
      Office Equipment
      Education

      4 Pieces of Office Equipment that Will Make Life Easier

      January 15, 2021
      dna-double-helix-chemical-formulas-computer-generated-d-rendering-medical-research-background-rotation-184787276
      Business

      Who is part combination scientist, inventor, anthropologist, explorer, designer, engineer, architect, reporter, journalist, museum curator, travel guide, therapist, teacher, trainer and athletic coach.

      January 14, 2021
      San Diego skyline
      Education

      Insider Corner: David Ebrahimzadeh Discusses The 10 Best California Towns to Invest In

      January 14, 2021
      Dan Lok
      Education

      Startup Central: Dan Lok’s ‘Take’ on How to Get Your Startup Off the Ground

      January 14, 2021
      Next Post
      feat 2 - The Final Score

      The Final Score

      Follow Us

      ADVERTISEMENT

      Categories

      • Art & Culture
      • Business
      • Editor's Choice
      • Education
      • Featured
      • Finance
      • Food & Dining
      • Health & Fitness
      • Human Interest
      • Insurance
      • Law
      • Marketing
      • Medical
      • News
      • People
      • Popular
      • Real Estate
      • Social Media
      • Technology
      • Uncategorized

      CBJ Partner Firebrand Media

      Laguna Beach Independent Newspaper

      Laguna Beach Magazine

      Laguna Beach City Guide

      On The Menu Laguna Beach

      Newport Beach Independent Newspaper

      Newport Beach Magazine

      Newport Beach Country Club Magazine

      Coastal Real Estate Guide (NB,LB, CDM)

      Montage Magazine

      Monarch Beach Resort Magazine

      Pacific Coast Magazine (SoCal)

      Omni Escapes Hotel Magazine

      Sea Island Life Magazine

      Salamander Hotel & Resorts Magazine

      Bespoke Concierge New York

      Evans Hotels

      View our entire portfolio here

      ADVERTISEMENT
      ADVERTISEMENT
      Facebook Twitter LinkedIn LinkedIn Instagram
      C B J   LOGO  SVG-01
      • About
      • Contact
      • Testimonials
      • Demographics & Advertising Rates

      Newsletter

      Top Stories

      • Judge gavel, scales of justice and law books in court

        Lawsuit Basics: How Much Does It Cost to Sue Someone?

        0 shares
        Share 0 Tweet 0
      • REPORT: TECH GIANT CISCO ABOUT TO LAY OFF 14,000

        0 shares
        Share 0 Tweet 0
      • The DealMaker

        0 shares
        Share 0 Tweet 0

      Latest Articles

      MacBook

      Enhance Your Tech Needs With Quick Decluttering Maxims

      January 18, 2021
      Monetize student blog

      When to Monetize Your Student Blog & How to Do It?

      January 16, 2021
      Office Equipment

      4 Pieces of Office Equipment that Will Make Life Easier

      January 15, 2021

      California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
      ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
      Site Design by 1REALTOUR

      Search
        Generic filters
        • Front Page
        • Business
          • Insurance
          • Real Estate
        • Finance
        • People
        • Featured
        • Technology
        • Law
        • News
        • Human Interest
          • Food
          • Art & Culture
        • Education
        • Health & Fitness

        California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
        ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
        Site Design by 1REALTOUR

        Do NOT follow this link or you will be banned from the site!