How much is Workers’ Comp Insurance in Louisiana? 2024 Rates

Workers’ Compensation Rates in Louisiana

Please note that these rates are approximate and can vary depending on factors such as the specific occupation and the carrier you choose. For more accurate quotes tailored to your business, speak to an experienced insurance agent.

Changes to Louisiana Workers' Comp Rates for 2024

Louisiana has approved a 9% reduction in workers' compensation rates, taking effect in May 2024.

This downward trend isn't new, as rates have been consistently falling over the past two decades. In fact, workers' comp rates have experienced a cumulative drop of 37% over the last five years, 49% over the last ten years, and 66% over the past 20 years.

How to calculate your Louisiana Workers' Comp Premium

The basic formula for calculating your workers' comp premium in Louisiana is as follows:

(Payroll / $100) x Rate = Estimated Annual Workers' Comp Premium

Your annual payroll reflects the total wages your employees are paid throughout the year. You'll then divide this amount by $100.

Rate is by Class Codes which represent the industrial classification system, which defines various industries and their associated risks. Different industries will have different rates for their class codes. Use the provided list to get an idea of your class code and rates, or contact an agent. 

Remember that this formula is just a rough estimate, and you will need to consult with a Louisiana workers' comp insurance agent to get an accurate quote.

Here’s an example of how it works

Let's say you own a painting business in Louisiana with an annual payroll of $100,000. The classification rate for painting businesses in Louisiana is $5.69 per $100 of payroll. The estimated annual workers' comp premium would be calculated as follows:

($100,000 / $100) x $5.69 = 5,690

Using this formula, your estimated annual workers' comp premium for your painting company in Louisiana would be around $5,690. Keep in mind that this is just an example and may not accurately reflect your specific business situation.

How can I save money on my Workers' Comp Premiums?

Here are some tips to help you reduce your costs and keep your employees protected:

Maintain a Safe Work Environment

First, focus on creating a safe work environment to minimize the risk of accidents. Implementing safety guidelines and regular employee training can significantly reduce the number of claims filed.

See if anyone can be Excluded

Before committing to a workers' comp policy, understand your options and look into alternate solutions. This could include excluding owners and managing members from the insurance policy depending on your industry and ownership structure. 

Track and Analyze Claims Data

By tracking claim patterns, you can identify areas of concern and address them proactively. For example, if you notice a specific department has more claims than others, you may need to invest in additional safety measures or training.

Verify Payroll Data

Make sure you're not overcharged on your premiums by verifying your payroll data. Inaccuracies can lead to higher workers' comp costs, so ensuring your payroll information is accurate can save you money.

Get a Quote with Kickstand

Why choose Kickstand? Kickstand offers a simple way to obtain a workers' compensation insurance quote tailored specifically to your business. In just a few minutes, you can start protecting your employees and making sure you comply with Louisiana's regulations.

To ensure the most accurate workers' comp insurance quote, be prepared to provide:

• A detailed description of the work your employees do
• An estimate of how much you will pay your employees in the next 12 months

You can also choose to include or exclude the owners of the business, depending on your preference and state laws.