Workers' Compensation Insurance for Physicians Cost | 2025
Workers' compensation insurance cost for physicians in 2025 averages $0.27 per $100 of payroll. This insurance ensures employees receive compensation for work-related injuries or illnesses and protects the medical practice from liability.
What is Workers' Comp Premium for Physicians based on?
Industry Risk
The cost of workers' comp insurance depends on job risk. The National Council on Compensation Insurance (NCCI) assigns a risk rating to each type of job based on historical injury rates and severity. These rates guide how risk is calculated across industries.
Physicians generally face lower risks compared to other medical professionals. For more details, check out our guide to Workers Comp Codes for Physicians.
Payroll
Larger payrolls result in higher premiums. A small private practice with fewer employees will pay less overall, but the rate per $100 of payroll stays steady.
Claims History
A strong claims history lowers premiums. Avoiding frequent claims for incidents like slips or repetitive motion injuries will keep your costs down.
How are Physician Workers' Comp Premiums calculated?
Here’s the formula to calculate your workers' comp premium:
Payroll divided by 100 x rate = Premium
Step 1: Calculate the Payroll
Determine the total annual payroll for all physician employees.
If annual figures are unavailable, calculate each employee's hourly rate by multiplying it by weekly hours and then multiplying that by the number of weeks worked in a year.
Step 2: Find your Rate
Find the workers' comp rate for your industry and state:
- Use the national average rate for physicians, which is $0.27 per $100 of payroll.
- Your existing policy will provide additional rate details.
Let’s work through an example together:
Let’s say you’re the owner of a small physician’s office. You’re one of two physicians and own the practice, so you exclude yourself from coverage. Your team includes one additional full-time physician, five physician assistants (PAs), and two full-time receptionists. Your team needs to be covered by a physicians workers’ compensation insurance policy.
Here’s the formula: Payroll divided by 100 x rate = Premium
Step 1: Calculate Payroll
We need to calculate the annual payroll for each employee type:
The full-time physician earns $64/hour. Multiply that by 40 hours per week and 52 weeks per year for an annual payroll of $132,499.
Each physician assistant earns $33/hour. Multiply that by 40 hours per week and 52 weeks per year for an annual payroll of $68,640 each. For five physician assistants, that’s $343,200.
Each receptionist earns $19/hour. Multiply that by 40 hours per week and 52 weeks per year for an annual payroll of $39,520 each. For two receptionists, that’s $79,040.
Step 2: Determine Rates
All employees in a physician’s office, including receptionists, fall under class code 8832. Florida’s rate for this class code is $0.25.
Note: In a physician’s office, you cannot separate out clerical employees like receptionists into a different class code. All employees are classified under the same code.
Step 3: Apply the Formula
Now, let’s calculate the workers' comp premium for the office:
Total payroll: $132,499 (physician) + $343,200 (PAs) + $79,040 (receptionists) = $554,739
Premium: $554,739 ÷ 100 x $0.25 = $1,387 annual premium
Monthly Premium: $116 monthly premium
Remember, this calculation is a starting point. Your actual premium may vary based on factors like your experience modification rate, specific state regulations, and additional fees or taxes.
Annual Cost of Workers' Comp for Physician Assistants (8832)
Here’s an idea of the annual workers' comp premium for a full-time physician assistant in different states.
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Disclaimer: 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.
Does it matter where I buy a Policy from?
Yes, it’s essential to choose wisely. A workers’ comp policy for a physician’s office must go beyond low premiums—it should offer the right protection for your medical team.
Here’s what to look for:
- Reputation: Ensure the provider is known for managing claims efficiently so your staff gets support quickly.
- Financial Strength: Choose a company with the stability to handle claims reliably.
- Customer Service: Excellent service is a must for handling sensitive claims.
- Medical Expertise: Pick a provider experienced in healthcare-related policies for tailored coverage.
What does Workers' Comp Insurance cover for Physicians’ Offices?
A workers’ comp policy for physicians’ offices provides:
- Medical Expenses: covers treatment for illness or injury on the job
- Lost Wages: Offers income replacement while employees recover
- Death Benefits: Provides support for families in the event of a work-related fatality
- Legal Protection: Protects the practice from lawsuits stemming from workplace injuries
How can I make Workers' Comp cheaper?
Physicians’ offices can lower workers' comp premiums by implementing these targeted strategies:
Create a Safety Program
A robust safety program can reduce risks like falls, musculoskeletal injuries, and exposure to pathogens:
- To prevent falls, clean up spills promptly, close file drawers, report clutter, and ensure proper lighting and secure flooring.
- Minimize musculoskeletal injuries with ergonomic office setups, including adjustable chairs, properly placed monitors, and footrests.
- Train staff on proper lifting techniques to prevent back injuries.
- Provide education about inflammation prevention, including periodic breaks and recognizing signs of muscle strain.
Provide Proper Equipment and Footwear
Encourage staff to wear supportive footwear, especially for those who are on their feet for long hours. Install anti-fatigue mats in areas where staff stand frequently to reduce strain.
Verify Payroll Accuracy
Keep accurate payroll records for each W2 employee and 1099 contractor to ensure they are classified under the correct class codes. This helps avoid overpaying premiums.
Use Insured Contractors
If you rely on 1099 contractors for cleaning, maintenance, or other services, collect Certificates of Insurance (COIs) to confirm they have their own workers’ comp coverage. Avoid hiring uninsured contractors to reduce liability risks.
Share Safety Efforts with Insurance Companies
Document your safety initiatives and share them with your insurance company. Programs like employee training or maintaining a low claims history can sometimes lead to premium discounts.
See how much you can Save
Are you curious about workers’ comp rates for your physician's office? Use our quick online calculator to find out how much you could save with the right coverage.
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.
Legally, workers’ comp is not needed for 1099 employees. However, if the employee lacks coverage, you may be held liable in case of injury. Also, if a state or federal authority determines your 1099 workers are not in fact independent contractors, they must be reclassified as employees. That also means you’re required to provide them with workers’ compensation insurance.
