The cost of workers’ compensation insurance can vary greatly depending on a number of factors, including:
- Your business location: Workers’ compensation laws vary from state to state, and so do the rates that insurance companies charge. For example, California typically has higher workers’ comp rates than Texas.
- The number of employees you have: The more employees you have, the greater your risk of having a workplace injury, and so the higher your workers’ comp premiums will be.
- Your industry: Some industries are considered to be more risky than others, and so businesses in those industries will pay higher workers’ comp rates. For example, construction companies typically pay more for workers’ comp than office-based businesses.
- Your claims history: If you have a history of workplace injuries, your workers’ comp premiums will be higher.
Here are some general estimates of the cost of workers’ compensation insurance:
- The national average cost of workers’ compensation insurance is $1.19 per $100 of payroll. This means that if you have a payroll of $100,000, you can expect to pay about $1,190 per year for workers’ comp insurance.
- Small businesses typically pay less for workers’ comp insurance than large businesses. According to Insureon, the average monthly cost of workers’ comp insurance for a small business is $45.
- The cost of workers’ comp insurance can vary widely depending on the factors listed above. For example, a construction company in California with a history of workplace injuries could pay significantly more for workers’ comp insurance than a small office-based business in Texas with no claims history.
Here are some tips for saving money on workers’ comp insurance:
- Shop around for quotes from different insurance companies.
- Improve your safety practices to reduce your risk of workplace injuries.
- Consider forming a group captive insurance company with other businesses in your industry.
