Businesses can expect an average of 3.1 workers’ compensation claims per 100 employees. Some industries are much more dangerous than others, so they can expect to see much higher claims.
You may be wondering what is the workers’ comp insurance cost for my company? How can you get maximum coverage for the least amount of money?
We’re here to help! Keep reading to learn more about how much it costs and how you can save money.
How Much Does Workers’ Comp Insurance Cost?
The average cost of a workers’ comp insurance policy varies based on the size of your organization and the number of employees you have. The cost of your policy will also depend on what industry you work in. A manufacturing or construction company is going to have a higher premium than an administrative service provider.
The only way to know for sure what costs your company will incur is to get quotes from insurance companies. When obtaining quotes, you’ll have to provide the following information:
- The state your company is in
- Annual payroll amount
- Industry and type of work
- Claims history
Each company will have a classification code when getting workers’ compensation insurance. This is to let providers know what type of work your business does and how risky it is. Ultimately, you could pay anywhere from $1 to several hundred dollars per employee, per month for the insurance.
Do you know the laws around workers’ compensation? Learn more about workers comp law.
Workers’ Compensation Benefits
It could be detrimental to your company if you don’t have workers’ compensation. When an employee is hurt on the job, the company is responsible for medical bills, lost wages, and sometimes a settlement. You must have this type of insurance if you have any employees.
If you are in a riskier industry and are the only employee, it would still be beneficial to take a policy out on yourself in case of injury.
How to Save on Workers’ Comp Costs
Cheap workers’ comp insurance isn’t always better. Did you know there are changes you can make within your business operations that will reduce workers’ comp costs? This list isn’t exhaustive:
- Have an incident system in place
- Build relationships with medical teams who specialize in your industry
- Assess past injuries and make changes to prevent them
- Create a light-duty program for less severe injuries
A few simple changes can greatly reduce your claims, and thus the associated costs. The fewer claims you have, the lower your premiums will be. It’s much cheaper to do an operational audit to identify areas of improvement than it is to pay workers’ compensation claims.
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Now that you’ve read this article, you can easily determine the workers’ comp insurance cost for your business. We hope you enjoyed learning about how to save money with this insurance.
Are you interested in learning more about legal or technical topics? Check out our blog.
Andrea Parker is a reporter for Zobuz. She previously worked at Huffington Post and Vanity Fair. Andrea is based in NYC and covers issues affecting her city. In addition to her severe coffee addiction, she’s a Netflix enthusiast, a red wine drinker, and a voracious reader.