Workers Compensation Cost, How Much Does Workers Compensation Insurance Cost?
Workers Compensation Cost, How Much Does Workers Compensation Insurance Cost?
Workers compensation insurance pays for medical care, lost wages and other benefits should an employee get hurt or sick on the job. It is an important insurance coverage and one that is required of businesses in most states.
Employers pay for workers comp insurance, although costs can essentially be passed on to employees via lower wages.
Factors in Workers Comp Insurance Costs
Key factors affecting workers compensation premiums are your industry, payroll and claims history. Your state’s worker compensation laws will impact your workers compensation premium as well.
- Industry: When it comes to workers comp, businesses like construction are riskier for claims and thus have higher premiums.
- Payroll: A company’s annual payroll is used to calculate its annual workers compensation insurance cost. Because of this, you’ll need to know your annual payroll figures when shopping for workers compensation insurance.
- Claims history: If your business has had workers compensation claims in the past, you’ll see an increase in your workers compensation costs. Both the number of claims and the seriousness of the claims will be considered when determining the workers comp rate for your business.
- State laws: The location of your company has an impact on premiums. Each state has its own state laws regarding workers compensation and these laws impact insurance premiums.
Workers Compensation Cost, How Much Does Workers Compensation Insurance Cost?
