The average cost of workers compensation insurance is around $94 per month. However, this figure varies widely based on factors like your industry, claims history, and location.
The true cost of workers' comp is best understood when broken down by industry type. Since industries vary widely, using an average for the whole market can be overly simplistic, or even misleading. Here’s how costs differ across various industries:
White-collar jobs are generally low-risk professions that don't involve physical labor or manual tasks. Examples include:
Average Premium: The average workers' comp premium for a white-collar professional is $10 per month.
These industries involve customer interaction with moderate physical risk, such as lifting, walking, or potential slips and trips. Examples include:
Average Premium: The average workers' comp premium for retail/service industries is $46 per month.
Skilled tradespeople in industries like plumbing, electrical work, or landscaping typically work in smaller teams or independently. Examples include:
Average Premium: The average workers' comp premium for artisan contractors is $120 per month.
Construction jobs tend to be physically demanding and high-risk, with heavy machinery, heights, and labor-intensive work. Examples include:
Average Premium: The average workers' comp premium for construction industries is $337 per month.
This category includes jobs with substantial safety concerns due to machinery, hazardous materials, or physically demanding tasks. Examples include:
Average Premium: High-risk industries typically face the highest premiums, with an average workers' comp premium of $517 per month.
All data has been derived by combining ZipRecruiter national payroll averages per industry with average rates of a national carrier partner. Figures are for illustrative purposes only and do not include taxes or additional fees.
To get an accurate estimate for your business, the two most important questions are:
By answering these questions, we can give you a better idea of what your specific premium will be. Want to know exactly how much your premium will be? Get a free quote tailored to your business.
Wondering how much workers' comp really costs for different industries? We've gathered some numbers straight from our client files to give you a glimpse into what businesses like yours are paying in 2024.
Keep in mind, these are just a few examples, but they should give you a good idea of what to expect.
Check out the premiums for some of the industries we work with:
Source: Kickstand Insurance
The size of your payroll plays a direct role in determining your workers' compensation premium. The more you pay your employees, the higher your premium will be. This is because premiums are based on your total payroll amount.
Here’s a basic formula to calculate premiums:
Annual Payroll ÷ 100 × Rate = Annual Premium
For example, if your business has $500,000 in payroll and your industry rate is $3 per $100 of payroll, your calculation would look like this:
$500,000 ÷ 100 × $3 = $15,000 annual premium
Several factors can influence your workers’ compensation premium:
The most common fees added to a workers’ comp premium include:
The typical pay schedule for workers' compensation insurance is usually one of the following, although there are others as well.
Get a tailored quote based on your business’s specific needs and location. Get Your Free Quote Now!
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.