Workers' Compensation Insurance Cost
If you have employees, you probably need workers’ compensation insurance. But what will it cost? The answer will vary across businesses because workers’ comp is state regulated and calculated differently than most other insurances.
While there isn’t a universal rate, it’s important to learn what aspects of your business affect your premium.
Basic factors that influence the cost of workers’ compensation insurance include:
Your employee’s risk
Some professions are higher risk than others. That’s why the National Council on Compensation Insurance (NCCI) developed a business classification system that calculates a rate according to an employee’s level of risk. These rates vary among states.
Riskier jobs usually have a higher rate. For example, an electrician might have a higher rate than an accountant because they’re more likely to become injured at work.
Your annual payroll is used to calculate your annual workers’ comp insurance cost. Be prepared to provide this information when getting your quote.
Your claims history
Has your business faced workers’ compensation claims in the recent past? If so, you could see a boost in your workers’ comp cost. Your insurance company might review your claims history and base your rate on the number and severity of past accidents.
Each state has their own unique set of workers’ compensation laws, so rates will vary depending on where you work. Higher-risk areas usually have larger premiums.
Searching for cheap workers’ comp insurance?
You’re in business to make money so you don’t want to over-pay for insurance. But how can you get the cheapest workers’ compensation insurance when many factors are out of your control?
The answer is simple. Minimize your risk for a claim. Here’s a few tactics that could help:
- Employee training – Properly training your employees on basic job functions could reduce the risk of injury. For example, a restaurant owner might train their kitchen staff on safe food preparation procedures to avoid cuts and burns.
- Safety standards – Educating your employees on safe work practices might prevent slips, falls and other bodily harm. A manufacturer, for example, might educate its workers on proper lifting and carrying techniques, or implement a process for cleaning up spills.
- Property maintenance – Supporting a safe and healthy work environment can reduce employee illnesses or injuries. This could include things like air duct cleaning, routine building inspections or snow removal.
Quote and purchase through the Progressive Advantage® Business Program
We’ve partnered with select insurance companies who underwrite workers’ compensation insurance. Our licensed professionals can help you with your quote, and you can buy directly over the phone.
You can also start a workers’ comp quote online.