Workers’ Compensation Insurance for Retail Cost 2025
In 2025, the average workers' compensation for insurance cost nationwide is $46 monthly per employee. This insurance protects your employees and business by covering work-related injuries or illnesses that happen on the job.
What is the Retail Workers’ Comp Premium based on?
Your workers’ comp premium depends on a few main factors:
Your Industry
The National Council on Compensation Insurance (NCCI) assigns each job a class code, which reflects the level of risk involved. Most retail businesses fall under class code 8017, covering general retail employees.
Workers’ comp rates for retail businesses vary slightly depending on the type of store you operate. For example, general retail stores may have different rates than specialty shops or stores that handle higher-risk merchandise.
To learn more about how your specific type of retail business is classified, check out our Guide to Workers’ Comp Codes to Retail Stores.
Your Payroll
Your premium is calculated based on your total payroll. The more employees you have, the higher your premium will be. More workers mean more potential for injuries.
Claims History
Businesses with a history of frequent injuries will see higher premiums. On the other hand, a clean claims history can reduce rates over time.
How are Retail Workers’ Comp Premiums Calculated?
Here’s the formula:
Payroll divided by 100 x rate = Premium
Step 1: Calculate the Payroll
Determine the total annual payroll for all store employees.
If you don't have the annual numbers, calculate each employee's hourly rate multiplied by their weekly hours and the number of weeks worked per year.
Step 2: Find your Rate
Find the workers' comp rate for your industry and state:
- Use the national average: Code 8017 is $1.66
- Check your existing policy for rate details
Example Calculation
Suppose you own a retail business in Connecticut with three part-time employees. Each employee works 30 hours per week and earns $16 an hour. You, as the owner, are excluded from coverage. To ensure your business and employees are protected, you need a retail store workers’ comp policy.
1. Calculate Payroll
- Each employee’s annual payroll:
$16/hour × 30 hours/week × 52 weeks = $24,960
- Total payroll for 3 employees:
$24,960 × 3 = $74,880
2. Find your Workers' Comp Rates
The national average retail rate is $1.66, but Connecticut’s rate is $1.71 per $100 of payroll.
3. Apply the Formula
($74,880 ÷ 100) × $1.71 = $1,282 per year
Your annual premium would be approximately $1,282.
This is an estimate and could vary based on additional factors like state regulations and discounts.
Annual Cost of Workers' Comp for 8017 Retail Stores
To give you an idea of what you might pay for workers' comp insurance in different states, here’s an example of average costs per employee for a few states.
Does it matter where you buy a Policy?
When shopping for plumbing workers' comp insurance, the price isn’t the only thing to consider. You should also consider the reliability of the insurance company, how quickly they process claims, and their customer service.
Choose a company with a solid reputation and experience in the plumbing industry to ensure your employees get the help they need fast if they're hurt on the job.
What does Workers’ Comp Insurance include?
Workers’ comp insurance provides protection for a variety of job-related injuries and illnesses.
Here’s what it typically covers:
- Medical Costs: Pays for treatment related to workplace injuries or illnesses
- Wage Replacement: Offers compensation to employees during their recovery period
- Death Benefits: Supports the family of an employee who passes away due to a work-related incident
- Legal Protection: Shields your business from lawsuits filed by injured employees
Tips to lower your Workers' Comp Premium
Want to save money on workers’ comp premiums?
Here are some practical tips:
- Implement a Safety Program: Retail jobs come with risks like slips, falls, and strains. Train employees on safe lifting techniques, encourage the use of tools like handcarts, and clean up spills immediately to reduce accidents.
- Focus on Tools and Training: Teach employees how to safely handle sharp tools like box cutters, and make sure walkways stay clear of clutter. Taking these steps shows your underwriter that you’re serious about safety.
- Check Class Codes: Ensure all workers are properly classified. Misclassifications can unnecessarily inflate your premiums.
- Ask about Discounts: Some insurance companies reward businesses with clean safety records or strong risk management.
- Focus on Reducing Claims: Fewer claims over time mean lower premiums, so prioritize safety training and proactive measures to prevent injuries.
Find out how much Workers' Comp would cost for your Retail Business
Want to learn more about retail workers' comp costs? Use our online tool to get a tailored quote and find out 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.
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