Workers’ Comp Rate for Property Management 2025
In 2025, the average workers' comp rate for property management is $2.48 per $100 of payroll. This insurance covers work-related accidents or illnesses for property managers.
What is Workers' Comp Premium for property managers based on?
Your exact premium will depend on your state, payroll, and claims history:
Your Industry
Workers’ comp insurance costs differ for each industry. It all depends on the level of risk in your type of work.
The National Council on Compensation Insurance (NCCI) is an organization that systematically categorizes each job role, assigning a four-digit class code to each, like a barcode, so others can easily reference it.
Each code also has a risk level which is based on how likely a worker in a particular industry is to get hurt and how bad the injury usually is. They are calculated using historical data for each state and industry.
Industries that are prone to higher instances of work-related injuries—like construction or manufacturing—tend to have higher workers' comp rates compared to those with lower risk profiles, such as office-based businesses.
Property management businesses have two class codes:
Class Code 9015: For property managers who manage properties, do light maintenance, collect COIs, and oversee vendors.
Class Code 9012: For clerical workers including leasing agents, bookkeepers, marketing, and other administrative employees
These codes can make a big difference in your premium. For more details, check out our property managers’ class code guide.
Payroll
Premiums are calculated per $100 of payroll. The higher your payroll, the higher your premium because there's a greater potential for injury.
Claims History
Your claims history is another important factor in determining your workers' comp premium. If your property management business has a history of injuries and accidents, your premiums could be higher.
However, if you're a new business without any claims history, this won't apply to your business.
How are Workers' Compensation Premiums calculated for property managers?
Here's a simple formula to calculate your premium:
Payroll divided by 100 x rate = Premium
Calculate the Payroll
First, figure out the total payroll for your property managers over the year. Include all employees in your calculations.
If you don't have the annual payroll numbers, take each employee's hourly rate, multiply by the number of hours they work per week, then multiply that by the number of weeks they work per year.
Divide the payroll figure by 100 to obtain the Payroll Per $100. This is how much insurance you have to pay for every $100 of payroll.
Find your Rate
Next, you need to know the workers' comp rate for your industry and state. Here are two ways to find your rate:
- Use national averages: Class code 9015 is $2.48, and 9012 is $0.77.
- Check your existing policy for rate details.
Here’s an example:
Say you’re a property manager in North Carolina with 2 property managers and 5 leasing agents.
This staff must be protected by a property managers’ workers’ comp insurance policy that you as the employer pay for and provide. Let’s consult the formula and follow it to figure out your premium.
Payroll divided by 100 x rate = Premium
Step 1: Calculate Payroll
We need each employee's annual payroll.
- The 2 property managers are making $28/hour, multiplied by 40 hours and 52 weeks for an annual payroll of $58,240 for each.
- The 5 full-time leasing agents and clerical staff are making $19/hour, multiplied by 40 hours and 52 weeks for an annual payroll of $39,520 for each.
Step 2: Determine Rates
Now you have to find the corresponding rate.
- The property managers are classified as Code 9015 with North Carolina’s rate of $1.87.
- The leasing agents should be classified as Code 9012 with North Carolina’s rate of $0.64.
Step 3: Apply the Formula
Here’s how to apply the formula. You need to do it separately for each class code. Let’s do class code 9015 first.
Class Code 9015: First, add the entire 9015 payroll.
- 2 full-time property managers: $58,240 x 2 = $116,480
Apply the formula: $116,480 (payroll) divided by 100 x $2.48 (industry rate) = $2,888
Class Code 8810: Do the same for the leasing agents.
- 5 full-time leasing agents: $39,520 x 2 = $79,040
Apply the formula: $79,040 (payroll) divided by 100 x $.64 (industry rate) = $506
Combine both for a total annual premium $2,888 + $506 = $3,394.
So, the annual workers' comp premium for your property management team in North Carolina would be approximately $3,440.82, plus any additional taxes and fees.
Remember that the actual premium may vary depending on factors such as your experience modification number, specific state regulations, and any discounts provided by your insurance carrier.
Annual Cost of Workers' Comp for 9015 Property Managers
To get a sense of what each 9015 full time property manager will cost, here is an average premium of the costs for a few states.
Annual Cost of Workers' Comp for 9012 Leasing Agents, Clerical, and Salespeople
To get a sense of what each 9012 leasing agent will cost, here is an average premium of the costs for a few states.
Does it matter where you buy a Policy?
When you're shopping for workers' comp insurance for property managers, it’s not just about finding the lowest price—there are other important factors to consider.
As a property manager, you want a policy that offers the right coverage for your business. But even more important is choosing a reliable company that will support your employees if they get injured. You want them to get back on their feet quickly and back to work.
Here are some key things to look for when picking an insurance provider:
- Reputation: Go for a company with a strong track record of efficiently handling workers' comp claims. This ensures your employees get the help they need promptly if they get hurt.
- Financial Strength: Choose a financially stable company that can pay out claims when necessary. You don’t want any surprises when it’s time to make a claim.
- Customer Service: Good customer service is a must. You want a provider that’s responsive and helpful, making the claims process as smooth as possible.
- Industry Expertise: Opt for an insurer that understands the property management industry. They’ll be better at providing the right coverage and handling any claims specific to your business needs.
What are the benefits of Workers' Comp Insurance?
- Medical Expenses: Covers all medical care for work-related injuries or illnesses
- Lost Wages: Compensates employees for lost income while they recover
- Death Benefits: Provides support for the family if an employee dies from a work-related incident
- Lawsuit Protection: Shields your business from potential legal action by injured employees
Tips to lower your Workers' Comp Premium
Implement a Safety Program
The quick way to reduce your workers' comp premium is by implementing a safety program in your business. If you tell your insurance company that you’ve implemented a safety program, they are likely to give you a discount.
For your property management business, a safety program should include:
- Regular safety training for employees
- Provision of personal protective equipment (PPE)
- Routine property inspections and maintenance to identify and address hazards
Check Class Codes
Another way to lower your workers' comp premium is making sure your class code is correct. If you make a mistake with your class codes, you could be paying much more than you need to.
From our Files
A client in West Virginia was classified as a handyman, which is similar to property management but more expensive. After we checked it out and probed further, we realized they were being misclassified and paying double what they should be!
See the entire story here: How Kickstand Reduced a Property Manager’s Workers’ Comp Rates by 50%
Ask about Premium Discounts
As a business owner, it's worth asking your insurance provider about premium discounts.
Some companies offer credits for maintaining a safe work environment or having a good claims history. Be proactive and find out if your property management business qualifies for these discounts
Work on reducing Claims
Lowering your business’s claims history (experience modification rate or ExMod) is another way to reduce workers' comp rates. This is more of a long-term strategy but well worth it. By preventing incidents in your workplace, you can lower your ExMod and save on premium costs.
See more Cost-Saving Tips for Property Managers Workers’ Comp
Find Out Your Exact Workers' Comp Costs
Curious about the specific workers' comp rates for your property management company? Use our simple online tool to get an accurate estimate tailored to your business. Try it now and see how much you could save!
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.
Every business owner knows that a workplace accident usually means two things. First, an employee will likely be out of work while they recover with the help of your workers’ comp insurance. Second, your rates are probably going to go up if the incident affects your Ex-Mod rate.
