Next Insurance for Workers Compensation
This article walks you through how ZIP leverages its partnership with Next Insurance to simplify workers' compensation for salons and spas.
Overview
Zenoti Integrated Payroll (ZIP) partners with Next Insurance to offer workers' compensation coverage tailored to the salon and spa industry. This guide covers the integration, setup, Broker of Record (BOR) transfer process, claims procedures, and key concepts around premium calculation.
Important
Zenoti acts solely as a technology partner responsible for transmitting payroll data to Next Insurance for accurate premium calculation. Zenoti does not own, underwrite, or assume any risk or liability with respect to any workers' compensation plan, policy, or premium. All plan-related, premium-related, and coverage-related discussions must be coordinated directly with Next Insurance.
About Next Insurance
Next Insurance is an online insurance platform designed specifically for small businesses. It enables eligible businesses to get instant workers' compensation coverage without the traditional paperwork and delays associated with conventional brokers.
Key capabilities:
Instant online quotes and policy binding for small businesses
Traditional workers' comp policies based on estimated annual payroll
Pay-as-you-go (PAYGo) billing that calculates premiums using actual payroll data every pay cycle
Digital-first claims filing through a customer portal
Why PAYGo policies work well with ZIP
Next Insurance'sPAYGomodel is especially attractive to businesses using a payroll provider because premiums adjust automatically with every payroll run —eliminatingthe need for annual audits and large lump-sum payments.
Feature | Benefit to ZIP Customers |
Real-time premium sync | Premiums calculated on actual payroll each cycle, not estimates |
No large upfront deposit | Better cash-flow management for seasonal or growing businesses |
Audit elimination | Reduce or eliminate end-of-year audit expenses and surprises |
Integrated with payroll | Save time — no separate reporting to the insurance carrier |
Flexible policy start | Start coverage when the business is ready, not on a fixed date |
PAYGo eligibility & Worker Classification
Not all workers qualify for the PAYGo billing model. Understanding worker classification is critical before enrolling.
Supported Worker Types
W-2 Employees only —PAYGo billing is exclusively supported for W-2 employees enrolled in ZIP payroll.
Note
Contractor Limitation
The Pay-as-you-Go approach is NOT supported for 1099 contractors or independent contractors. If a business has a mix of employees and contractors, or operates exclusively with contractors, they should explore the traditional direct bill option with Next Insurance directly.
Zenoti will only transmit W-2 employee payroll data. No contractor payroll data is transmitted to Next Insurance.
Worker Mix Scenarios
Business Profile | Recommended Coverage Path |
All W-2 employees on ZIP | PAYGo via Zenoti + Next Insurance integration |
Mix of W-2 employees and contractors | Direct bill policy - contact Next Insurance directly |
All 1099 contractors | Direct bill policy - contact Next Insurance directly |
W-2 employees not yet on ZIP | Enrollin ZIP first, then activate PAYGo integration |
Using a Preferred Insurance Partner
If a customer prefers to work with their own workers' compensation insurance provider instead of Next Insurance, ZIP supports this through the Payroll Register report. Customers can share payroll data directly with their preferred carrier or broker on a recurring schedule aligned to their policy requirements.
Note
Payroll Register Report
The Payroll Register is a standard report available in ZIP that captures a full breakdown of employee earnings, deductions, and hours for a given period.
Customers can run and share this report:
Per payroll run - for carriers that require premium remittance after every pay cycle
Monthly - for carriers that reconcile premiums on a monthly billing schedule
The cadence should be agreed upon between the customer and their insurance partner at the time of policy setup. Zenoti does not coordinate directly with third-party carriers.
Broker of Record (BOR) Switch Process
If a new or existing customer currently has a workers' compensation policy with another carrier or broker and wants to transfer it to the Next Insurance program, a Broker of Record change is required.
How the BOR transfer works
The following steps outline the standard BOR switch process:
BOR Letter & ACORD Form Sent by Next - Next Insurance reaches out to the customer with a BOR Letter (confirming the intent to switch the broker to Next) and an ACORD form (verifying existing policy information).
Customer Signs and Returns Forms - The customer completes and signs both documents and returns them to Next Insurance.
Next Files the BOR Change - Next submits the completed forms to the carrier. Within 24–48 hours, the BOR change is officially processed.
Note
Key BOR Considerations
BOR switches are carrier-dependent. Not all carriers allow a mid-term broker switch without incurring fines or penalties.
Customers should confirm with their current carrier whether a mid-term BOR change is permissible before initiating the process.
Timeline: Expect 24–48 hours for the change to take effect after Next files the forms.
Claims & Customer Support
Filing a Claim
How a customer files a claim depends on whether their workers' compensation policy is held with Next Insurance or a different carrier.
Policy Held With | How to File a Claim |
Next Insurance | Online via the customer's Next account portal, or by calling Next's dedicated claims team |
Another carrier | Contact the carrier directly — Next Insurance does not manage claims for third-party policies |
Contacting Next Insurance
There is no dedicated account manager assigned per customer. Whether you are an existing policyholder with a question or claim, or a prospect looking to get a quote or speak with a licensed broker, use the contact details below:
📞 Phone 888-289-2939 General inquiries, claims, quotes, and licensed broker calls | ✉️ Email referral@apintego.com Referral inquiries and broker coordination |
Appendix: Workers' Compensation Insurance 101
A reference guide for understanding workers' comp fundamentals.
What Is Workers' Compensation Insurance?
Workers' compensation insurance provides benefits to employees who are injured or become ill as a direct result of their job. The policy is designed to protect both employer and employee by covering:
Medical expenses related to the work injury or illness
Lost wages during recovery
Disability payments (temporary or permanent)
Rehabilitation and return-to-work costs
Workers' comp insurance is required by law in most U.S. states. The specific coverage and benefit levels vary by state, but the fundamental purpose — protecting workers and limiting employer liability - is universal.
How Is a Workers' Comp premium calculated?
A workers' comp premium is the periodic payment an employer makes to an insurance company for coverage. The premium amount is determined by several factors:
Factor | Description |
Payroll size | Higher payrollgenerally meanshigher premiums |
Employee class codes | Each job type is assigned a classification code with an associated risk rate |
Claims history | A history of frequent or costly claims increases the rate |
Industry type | Higher-risk industries (example, construction) have higher base rates than low-risk industries |
State regulations | Each state sets its own minimum rates and regulatory requirements |
The standard premium formula is:
Premium = (Payroll ÷ 100) × Class CodeRate × Experience Modifier
How Workers' Comp Is connected to payroll
Because workers' comp premiums are calculated as a percentage of payroll, the two are intrinsically linked. As payroll grows or shrinks, so does the insurance obligation. This relationship is what makes payroll-integrated insurance — such as the Next Insurance PAYGo model - a natural fit for businesses using ZIP.
The payroll-to-premium connection works as follows:
The insurance carrier assigns a class code to each type of employee role in the business.
Each class code has a per-$100-of-payroll rate set by the state's rating bureau.
Every pay cycle, the employee's gross wages are multiplied by the applicable rate todeterminethe incremental premium due.
PAYGo vs. Traditional Yearly Audit: A Comparison
Pay-As-You-Go (PAYGo) | Traditional Yearly Audit | |
Premium basis | Actual payroll each pay cycle | Estimated annual payroll upfront |
Payment timing | Each pay cycle (automated) | Lump sum at policy start |
End-of-year audit | Not required - premiums alreadyaccurate | Required - adjust estimate vs. actual |
Cash flow | Predictable, proportional to payroll | Large upfront deposit; potential refund or bill |
Admin burden | Low — automated through ZIP | Higher - requires upfront estimation and audit |
Best for | Businesses with variable or seasonal payroll | Businesses with stable, predictable payroll |
Contractor eligibility | W-2 employees only | All worker types |
Summary of PAYGo advantages
Better cash-flow management - pay only for actual payroll, no large deposits
Eliminate or reduce audit expenses - no end-of-year reconciliationrequired
Save time - automated transmission of payroll data removes manual reporting
Accuracy - premiums reflect real workforce activity, not estimates