Dennis Dix is Chief Operating Officer at Cerity, an Austin-based data and analytics start-up offering workers’ compensation insurance.
Small-business fees for things like insurance and payroll services always eat away at the bottom line, but as the pandemic drags on, business owners should be increasing their awareness of how to keep these fees under control. Fortunately, several new-model services offer significant savings for businesses in the know.
Today, small businesses can take advantage of significant cost savings when processing payroll. Additionally, worker’s compensation insurance providers could potentially save business owners big money — with the right technology, no commissions and no upfront costs.
The Future: Direct-To-Consumer Worker’s Compensation
Like never before, small business owners are learning, evaluating and making greater purchasing decisions completely online. As consumers themselves, owners’ expectations are higher. To be successful these days, insurers cannot simply rely on their domain expertise to attract buyers. Now, they must develop an intuitive and attractive user interface that guides users through an efficient process, requiring little data input.
Insurers that embrace a digital-first lens to the customer experience can gain traction with small business owners. For example, my company uses an “outside-in” methodology that offers direct-to-consumer access through a web-based questionnaire and process that can get small business worker’s compensation insurance coverage in as few as five minutes. The direct-to-consumer approach enables small businesses to save significant money by sidestepping traditional retail channels and removing the intermediary. This approach can enable leaders to focus on growing and scaling their operations while saving money.
Pay As You Go: The New Worker’s Compensation Model
“Pay as you go” is another way that small business owners take control of costs. The cost of worker’s compensation insurance (the premium) varies depending on the jurisdiction any given business is in, as well as