Workers Compensation Insurance for Consultants Cost in 2025
In 2025, the average workers' compensation insurance for consultants costs $0.11 per $100 of payroll, or about $10 monthly per employee (excluding taxes and fees). This is one of the lowest rates across all industries, reflecting the low-risk nature of consulting work.
What is a Consultant’s Workers' Comp Premium based on?
Your workers' comp premium depends on several factors, such as:
Industry Risk
Workers' comp rates vary by industry, as determined by the National Council on Compensation Insurance (NCCI). The NCCI assigns classification codes to every type of job based on its associated risk level.
Most consulting businesses fall under Class Code 8810, which is a “catch-all” for most low-risk office jobs, including accountants, IT consultants, financial advisors, and business coaches. This classification reflects the predominantly desk-bound nature of these roles.
However, some consulting-related roles fall under different classification codes due to slightly higher risk factors.
Here’s a breakdown of common consulting-related codes:
- 8810: Accountants, IT consultants – $0.11 per $100 of payroll
- 8723: Insurance agents – $0.24 per $100 of payroll
- 8721: Real estate appraisers – $0.34 per $100 of payroll
- 8720: Insurance adjusters – $0.99 per $100 of payroll (higher due to occasional fieldwork, such as roof inspections)
Despite the range, consulting remains the safest and most affordable industry for workers’ comp coverage. For more details, check out our guide: Workers Compensation Class Code for Consultants.
Payroll
Your workers' comp premium is calculated based on your estimated annual payroll. The higher your payroll, the higher your premium, since each employee represents a potential risk for claims.
Claims History
If you’ve filed frequent claims in the past, your premiums may increase. On the other hand, maintaining a clean claims record could result in discounts or reduced rates over time.
How are Consultants’ Workers' Comp Premiums calculated?
Here’s a straightforward formula:
Payroll divided by 100 x rate = Premium
Step 1: Calculate Payroll
Determine the total annual payroll for all employees in your consulting business. If annual numbers aren’t available, calculate each employee’s hourly rate multiplied by weekly hours and weeks worked per year.
Kickstand Tip: Don’t overlook 1099 Contractors!
Many consulting businesses work with 1099 contractors—especially those offering specialized or field-based services. Think IT consultants outsourcing developers or insurance adjusters inspecting properties.
Here’s what you need to know:
- Always ask for a Certificate of Insurance (COI) to confirm coverage.
- No COI? You’re on the hook for their payroll during audits—and your premiums could spike.
A simple COI request now can save you a lot of headaches later!
Step 2: Find your Rate
- Check the workers' comp rate for your industry and state. Most consulting roles fall under Class Code 8810, with an average national rate of $0.11 per $100 of payroll.
Example Calculation
Let’s say you’re an engineer in Missouri with decades of expertise in oil and gas operations. To land freelance contracts, you need to show potential clients you have consultant’s workers’ compensation insurance. This not only protects you but also reassures clients that they won’t be held liable in case of an injury.
Your salary is $101,752 per year, which breaks down to about $8,479/month. Missouri has a workers’ comp rate of $0.14 per $100 payroll.
Here’s how you’d calculate your annual premium:
- Annual Salary: $101,752
- Workers’ Comp Rate: $0.14 per $100 of payroll
- Calculation: $101,752 ÷ 100 × $0.14 = $142.45 (Annual Premium)
However, keep in mind:
- Taxes and Fees: These aren’t included in the estimate and can change depending on your state and insurance company.
- Minimum Premiums: Most policies have a minimum cost of $250–$1,000 per year, so even if your premium is less, you’ll still pay at least this amount.
- Hard-to-Get Policies: If you’re a 1099 contractor or self-employed, it might be hard to get a regular workers’ comp policy. A ghost policy could be your best option.
How much does Insurance Cost for a Consultant?
To give you an idea of what you might pay for workers' comp insurance, here’s an example of average costs per employee in selected states.
Does it matter where you buy a Policy?
When shopping for workers’ comp insurance for consulting businesses, the price isn’t the only thing that matters. Look for insurers with strong online reviews, excellent customer service, and a history of supporting businesses like yours with accurate classifications and prompt claims processing.
What does Workers' Comp Insurance cover?
Consultants’ workers' comp policies typically include:
- Medical Costs – Pays for treatment of injuries or illnesses caused by work, such as slips, trips, or repetitive motion injuries.
- Wage Replacement – Covers a portion of lost income while an injured employee is unable to work.
- Survivor Benefits – Provides financial assistance to families in the rare event of a fatal workplace accident.
- Liability Protection – Shields your business from lawsuits related to employee injuries sustained on the job.
Tips to lower your Workers' Comp Premium
Want to keep your costs low? Try these strategies:
Implement a Safety Program
Even consulting businesses face risks like slips, trips, and falls, especially during winter. Keep floors dry, secure cords, eliminate clutter, and replace burned-out lights to minimize accidents.
Invest in Ergonomics
Provide ergonomic chairs, desks, and equipment to prevent repetitive motion injuries like carpal tunnel syndrome. Encourage employees to take breaks and report discomfort early—small steps can prevent costly claims.
Use Technology
If your business includes adjusters or evaluators, encourage the use of drones for roof inspections or other risky tasks. Reducing manual exposure minimizes claims and keeps premiums lower.
Collect COIs from 1099 Contractors
If you work with independent contractors, especially adjusters, always request a Certificate of Insurance (COI) to confirm they have their own coverage. Without it, you’ll need to include their payroll in your policy, potentially increasing your costs.
Request Discounts
Many insurers offer discounts for businesses with a strong safety record or implemented safety measures. It’s worth asking!
Want to know your Consultant Workers' Comp Costs?
Curious about how much workers' comp will cost for your consulting business? Use our online calculator to get a customized quote and see how much you can 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.
Typically, a ghost policy cost is around $1,000, although prices may vary depending on the insurance carrier and coverage options. Some carriers that offer ghost policies also provide pay plans, while others may not.
