Workers' Compensation Insurance Cost
In 2022, the national median monthly cost of workers’ compensation insurance was $70 for new Progressive customers. The average rate was $117 per month. These prices indicate that a few expensive outliers made the average premium appear higher than what most policyholders paid.
Rates vary across businesses because workers’ compensation is state regulated and calculated differently than most other insurances. Your cost might be higher or lower depending on your profession, payroll, claims history and location.
Cost factors
A few basic factors influence how much you’ll pay for workers’ compensation insurance:
Your profession
Some professions are higher risk than others. 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 payroll
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 an increase in your workers’ comp cost.
Your insurance company usually reviews your claims history and bases your rate on the number and severity of past accidents.
Your location
Each state has a 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?
Finding cheap workers’ comp insurance can be challenging because many factors are out of your control. However, you can get a lower rate by minimizing your risk of a claim.
Here are a few tactics that can help you get the cheapest workers’ compensation insurance:
- 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 about workplace safety might prevent slips, falls and other bodily harm. For example, a manufacturing business might educate its workers on proper lifting and carrying techniques.
- Property maintenance – Providing a safe and healthy work environment can reduce employee illnesses and injuries. These improvements could include air duct cleaning, routine building inspections and snow removal.
Starting a quote is the best way to learn how much workers’ compensation will cost your small business.
Quote and purchase workers’ comp through Progressive Commercial
Progressive Commercial partners with select insurance companies that underwrite workers’ compensation insurance. Our licensed professionals can walk you through this process. Call us today to start a quote.
You can also get a workers’ comp quote online.
