Workers’ Compensation Costs
How much will it cost to find Workers’ Compensation for your business? Unfortunately, it’s not always simple to find out how much it will cost to provide Workers’ Compensation for your business and employees. There is no set cost and your premium will depend on a wide variety of factors.
Factors to Consider
- Your industry: Some industries—like construction, manufacturing, and hospitality—are considered more high-risk than other industries. If you are in a high-risk industry, it can lead to higher premiums.
- Your number of employees: Since having a large workforce means a higher chance of workplace injuries, companies with many employees may see higher premiums than smaller companies.
- The state or states where your employees work: Workers’ Compensation requirements and costs vary by state, so your location can have a big impact on the cost of your coverage.
- The type of work done by your employees: If you’re in a high-risk industry or your employees frequently do dangerous work, it can increase your risk of workplace accidents and drive up your Workers’ Compensation premium.
- Your total annual payroll: Your payroll documentation is also used to calculate your Workers’ Compensation premium, particularly employee job classification and wage documentation. If you have many employees with high wages, it can raise your premium.
- Your previous Workers’ Compensation claims history: If you have a history of workplace accidents or injuries, it can lead to higher premiums. On the other hand, a clean history can lead to a lower premium.
- Experience modifier rates (ERs): This compares your claims history to the average for your industry. If your ERM is higher than your industry’s average, it can drive up the cost of your Worker’s Compensation coverage.
The Risks of Losing Workers’ Compensation Coverage
While there are many factors that may drive up your Workers’ Compensation premium, it is even more expensive to forgo Workers’ Compensation coverage. This is because Workers’ Compensation is required under most circumstances. If you don’t have coverage, it can lead to fines and complex liability issues. It also increases the risk of costly and dangerous on-the-job accidents.
Finding a Solution with WCBIS
At Work Comp Business Insurance Solutions, we can help you navigate the complex process of finding the right Workers’ Compensation coverage. We specialize in helping businesses in need, including those with lapsed coverage, previous audit issues, or a history of workplace accidents. We can also assist businesses in a wide variety of high-risk industries, including manufacturing, logging, cannabis, transportation, hospitality, and more.
Through products like our full PEO product, we’ll help your business by drawing on our wide network of carriers to find comprehensive and affordable coverage, tailored to the exact needs of your business. We also offer risk management, payroll, and HR support to assist with safety-related tasks like:
- Identifying, mitigating, and preventing common risks
- Ensuring federal, state, and industry compliance
- Assistance with employee classification and other critical documentation
- Safety training assistance
When it comes to Workers’ Compensation, we know all businesses have different risks and different needs, and we’re ready to act as your partner at every step of the process for finding affordable Workers’ Compensation solutions for your business and your employees.
At Work Comp Business Insurance Solutions, we help business owners find the best Workers’ Compensation and payroll solutions.To learn more about our services and how we can help your business, visit us online at https://www.wcbis.com.
