How much does workers’ compensation insurance cost?
Every state has it own rules when it comes to workers’ compensation insurance, so the cost of a policy will depend on where your employees are located. Companies with more employees and greater risks pay higher rates for workers’ compensation coverage, because they’re more likely to face workplace injuries.
The cost of workers’ compensation depends on:
- The state(s) where your employees work
- Your annual total payroll
- Your industry
- The type of work done by your employee’s
- Your claims history
Physically demanding work usually results in higher premium rates – so does a history of workplace accidents. The state where your employees work can also have a big impact on the workers’ compensation premium you’ll pay.
Workers comp rates are unique because they tend to decrease over time, as overall workplace safety continues to improve.
The average cost of a workers’ comp claim is $40,000