Workers' Compensation Insurance for Therapists Cost | 2025
Workers' compensation insurance cost for therapists in 2025 averages $0.27 per $100 of payroll. This policy provides financial protection for employees facing work-related injuries and helps the business remain protected from legal action.
What is Workers' Comp Premium for Therapists based on?
Industry Risk
The National Council on Compensation Insurance (NCCI) assigns risk levels to jobs using historical injury data. These codes guide how workers' comp premiums are calculated.
Therapists have a low risk level. Common issues include repetitive motion injuries or strains from assisting clients physically. For more details, check out our guide to Workers Comp Codes for Therapists.
Payroll
Therapists with larger payrolls pay more overall for workers' comp insurance, although the rate per $100 of payroll remains low.
Claims History
A clean record of no claims keeps premiums low. Even small claims for injuries like strains can raise your costs.
How are Therapist 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 therapy 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 therapists, which is $0.27 per $100 of payroll.
Your policy will include further details about your specific rate.
Let’s work through an example together:
Let’s say you’re the owner of a small physical therapy office. You’re one of two physical therapists and own the practice, so you exclude yourself from coverage. Your team includes one additional full-time physical therapist and one full-time receptionist. Your team needs to be covered by workers' compensation insurance for physical therapists.
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 physical therapist earns $32/hour. Multiply that by 40 hours per week and 52 weeks per year for an annual payroll of $66,449.
The receptionist earns $19/hour. Multiply that by 40 hours per week and 52 weeks per year for an annual payroll of $39,520.
Step 2: Determine Rates
All employees in a physical therapy office, including receptionists, fall under class code 8832. Maine’s rate for this class code is $0.35.
Note: In a physical therapy 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: $66,449 (physical therapist) + $39,520 (receptionist) = $105,969
Premium: $105,969 ÷ 100 x $0.35 = $371 annual premium
Monthly Premium
$31 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.
Note: In small physical therapy practices, like the one in this example, the calculated premium may be very low. This can make it hard to find a carrier willing to write the policy. Carriers typically require a minimum annual premium—often around $250 to $500—to make it worthwhile for them to offer coverage.
This issue might also arise in larger physical therapy practices where all therapists are members of an LLC. Since LLC members can choose to exclude themselves from coverage, the premium may be too small to attract a carrier. Even if you do find a carrier, they may increase your premium to meet the minimum premium threshold.
Annual Cost of Workers' Comp for Physical Therapists (8832)
Here’s a look at what the annual premium might be to insure a full-time physical therapist, based on rates from various 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, choosing the right insurance provider is essential. Physical therapists work closely with patients, which can sometimes lead to injuries requiring claims.
Here’s what to prioritize:
- Reputation: A strong reputation ensures efficient claims handling.
- Financial Strength: Choose a company with the resources to handle claims promptly.
- Customer Support: Look for responsive customer service to handle issues quickly.
- Healthcare Expertise: Providers experienced in healthcare policies offer tailored coverage.
What does Workers' Comp Insurance cover for Therapists?
A workers’ comp policy for therapy offices includes:
- Medical Expenses: covers treatment for illness or injury on the job
- Lost Wages: Provides wage replacement while employees recover
- Death Benefits: Offers financial support for families in the event of a fatal workplace accident
- Legal Protection: Protects the practice from injury-related lawsuits
Tips to lower your workers comp premium
Create a Safety Program
Establish a safety program tailored to the unique risks in therapy practices:
- Train staff on safe patient handling techniques to prevent musculoskeletal injuries, especially for physical and occupational therapists.
- Use ergonomic tools and equipment, such as adjustable therapy tables, to reduce strain.
- Keep walkways clear of clutter to prevent slips and falls in therapy rooms and common areas.
- Encourage therapists to take breaks to avoid repetitive strain injuries from prolonged treatments.
Manage Contractor Coverage
If your practice works with independent contractors, such as freelance mental health counselors or therapy aides, require them to provide Certificates of Insurance (COIs) proving they have their own workers' comp coverage. This protects your practice from liability.
Know Your Costs
Get clarity on your workers’ comp rates for your therapist office. Use our online calculator to get a tailored quote in minutes.
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.
