Virginia Workers’ Compensation Insurance Rates for 2024: A Guide for Small Businesses
Like all states, Virginia doesn’t offer one workers’ comp rate that applies to all businesses. Instead, your rate will vary according to the industry you operate in, the size of your payroll, and your claims history.
To help you figure out your workers’ compensation insurance rates in Virginia, we’ve compiled a list of Virginia’s most common industries along with the rates from one of our leading partner carriers.
The rate you'll see represents the cost you can expect to pay for every $100 of your payroll. Once you've identified your rate, we'll guide you through the next steps on how to calculate your overall premium.
Virginia Workers’ Compensation Class Codes 2024
Calculating your premium
Once you've located the appropriate rate, calculating your premium is straightforward. Here's the formula you'll use:
(Annual Employee Payroll / $100) x Industry Rate = Your Estimated Premium
Start with your total anticipated gross annual payroll for all employees, divide that figure by $100, and then multiply by your industry rate.
For example, if you're running a landscaping business with two workers and a combined payroll of $105,000, you'd divide that by 100, which gives you $1,050. Then, multiply this by the Virginia rate for landscapers, which is $3.63. You’ll get a ballpark figure of your workers' comp premium, which totals $3,812.
Keep in mind: This estimate doesn't include taxes and fees. Additionally, your claims history could influence the final cost.
Watch this video to learn more about calculating your workers’ comp rate.
Strategies for managing your Workers' Compensation costs
Managing your Virginia workers compensation insurance rates effectively requires a proactive approach. Here are some strategies to help keep your premiums in check:
Safety Programs:
Implement comprehensive safety training programs to reduce workplace injuries. A safer work environment not only protects your employees but also helps minimize the likelihood of claims, which can positively affect your insurance rates.
Return-to-Work Programs:
Develop a return-to-work program to help injured employees transition back to work as soon as medically feasible. This can reduce the overall cost of claims and demonstrate to your insurance provider that you are actively managing your risk.
Regular Payroll Audits:
Conduct regular audits of your payroll to ensure that it is accurately classified. Misclassification can lead to incorrect premium calculations, so it’s critical to regularly review and update your payroll information.
Shop Around:
Insurance carriers can vary significantly in how they price their policies. It's wise to shop around and compare quotes from different providers to ensure you are getting the best rate for your coverage.
Consult with Professionals:
Work with an experienced insurance agent or broker who understands the intricacies of Virginia workers’ compensation insurance rates. They can provide valuable insights, help you navigate the classification system, and find discounts or strategies to lower your premiums.
Learn more about workers compensation for businesses in Virginia on our A-Z guide on everything you need to know before you purchase a Virginia Workers' Comp Insurance Policy.
Navigating your Workers' Comp Insurance
If you need guidance or simply want to ensure you're getting the most accurate and cost-effective coverage, we're here to assist. Don't hesitate to contact us at (866) 338-8823 for personalized support, or use our instant quote tool for a quick and easy estimate of your workers' comp premium.
Note: The rates listed above have been provided by one of our partner insurance carriers, and were accurate at the time of publishing and for illustrative purposes only and may not reflect actual current rates for workers' compensation insurance in Virginia at this time. Various factors such as claim history and business experience can affect the rate as well. Business owners should consult with an insurance agent or the NCCI for accurate and up-to-date rate information.
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.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
