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Workplace injuries and illness may not be the first thought that comes to mind for an entrepreneur launching a new business. But seasoned business owners know the value of protection. Although small businesses understand the importance of insurance, it’s often not prioritized or overlooked due to the complexity of running a small business.
A survey of 500 small business owners across the U.S. found that 90% of owners aren’t completely confident they have enough insurance coverage for their small business.
That’s why we’re excited that Gusto Embedded has partnered with NEXT Insurance, a leading digital insurtech company, so that our partners can offer their customers a seamless workers’ compensation quote interface. The policies from NEXT are pay-as-you-go, creating a tailored, and convenient way for owners to protect their businesses from unexpected expenses. Through NEXT Connect, an embedded insurance solution, small business customers can quickly purchase coverage that makes it easier to stay compliant and protect their businesses and employees. Without insurance, the employer could be responsible for all the costs related to a workplace accident, which could add up to tens of thousands of dollars.
Gusto Embedded partners can now give customers the option to get a free workers’ compensation quote in minutes and sign up for coverage without leaving the partner’s SaaS platform. NEXT Connect’s simple and intuitive quote and signup UI can be seamlessly integrated via Gusto Embedded’s pre-built Flows or via an API call.
Better together: embedded payroll and workers’ compensation
Business owners in most states are legally required to have workers’ compensation coverage if they have employees. For example, Colorado law requires coverage as soon as you hire an employee. Tennessee business owners are not required to have coverage until they have five or more employees (more here). In many cases, business owners find it more convenient to sign up for payroll and workers’ comp together.
Even when not required by law, many business owners buy coverage in case an employee experiences a work-related injury or illness. Workers’ comp may also be required to get a license for some professions. Or clients may ask business owners for proof of insurance before closing a deal. Having a certificate of insurance for workers’ comp lets clients know their vendors have coverage in case an employee gets injured while working for them.
Part of running a business means managing workplace injuries and illness. The complexity of state law makes compliance an onerous task for business owners. For example:
- In some states for some industries, subcontractors may be classified as your employees if they don’t carry their own workers’ comp insurance.
- For business owners, personal health insurance may or may not cover medical fees for work-related injuries.
- Workers’ comp is not just for high-risk jobs: repetitive-motion injuries (i.e., carpal tunnel), slip-and-fall accidents, and strains can happen at relatively safe businesses and trigger unexpected costs for uninsured businesses.
Why NEXT workers’ comp
NEXT Connect is an embedded insurance solution that enables partners to give their customers more choice and simplicity when purchasing insurance policies — within their SaaS platform. NEXT Connect’s pre-built, simple, and intuitive UI helps business owners customize an affordable business insurance quote and sign up for coverage in minutes. By leveraging multiple insurance carriers, including NEXT, partners can address the full coverage needs of virtually any type of small business anywhere in the U.S.
NEXT Connect combines a partner-based, multi-carrier model with a user-friendly technology and customer experience. Additionally, NEXT leverages artificial intelligence (AI) and machine learning to deliver digital, simple and affordable purchasing experiences. Business owners are able to purchase coverage in a convenient way for them — either completely online or with the assistance of a licensed insurance agent.
How will embedded payroll partners take advantage of NEXT workers’ comp?
Gusto Embedded partners do not need to do additional UI work to offer NEXT’s workers’ comp simple and intuitive quote and signup UI. The option for end-customers to opt into the NEXT Connect quote flow will be included in select pre-built Flows or via API call.
Ultimately, Gusto Embedded plus NEXT aim to empower more SaaS partners to serve even more small businesses with convenient, seamless, and affordable insurance options to better serve their teams and protect their businesses.