Workers' Compensation Insurance Cost
What does 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. The median price better reflects what most policyholders paid because high and low outliers can skew the average cost.
Rates vary across businesses because workers’ compensation is state regulated and calculated differently than most other types of insurance. It usually costs more because it covers medical expenses and lost wages for work-related accidents and illnesses.
What factors affect your workers’ comp insurance cost?
Several factors influence your workers’ compensation insurance cost, including your profession, payroll, claims history, and location:
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, which can affect how much you’ll pay for workers’ comp. For example, an electrician might have a higher premium than an accountant because they’re more likely to become injured at work.
Insurance companies calculate your annual workers’ comp insurance cost per $100 of payroll. The higher your payroll, the more you can expect to spend. Be prepared to provide this information when getting your workers’ compensation 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 small business’s claims history and bases your rate on the number and severity of past accidents.
Each state has a unique set of workers’ compensation laws, so rates will vary depending on where you work. Your state determines the number of employees you need to insure, the types of employment workers’ comp covers, purchasing options, benefit payments, and more.
Browse business insurance by state to learn about workers’ comp coverage where you live.
How do I get 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 better rate by minimizing your risk of a claim. Fewer accidents typically mean a lower workers’ comp insurance cost.
Here are a few tactics that can help small businesses get the cheapest workers’ compensation insurance:
- Employee training: Properly training your employees on basic job functions could reduce their risk of injury. For example, a restaurant owner might train the kitchen staff on safe food preparation 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 find out how much workers’ compensation coverage will cost your small business.
Get your customized workers’ comp rate today
Progressive Commercial partners with select insurance companies to provide workers’ compensation insurance. Our licensed professionals can walk you through this process and connect you with the right coverage for your business.