Workers' Compensation Insurance for Welders Cost | 2025
Workers' compensation insurance cost for welders in 2025 averages $3.97 per $100 of payroll. That comes out to about $153 per employee each month. This policy supports employees with work-related injuries and helps the business avoid costly legal claims.
What is Workers' Comp Premium for Welders based on?
Industry Risk
The National Council on Compensation Insurance (NCCI) assigns risk levels to jobs using class codes. These codes measure the likelihood of injuries and their severity.
Welders face significant risks due to burns, electrical shocks, and repetitive strain from heavy equipment. These factors place welding in a high-risk category. For more details, check out our guide to Workers Comp Codes for Welding.
Payroll
The more welders you employ, the higher your workers' comp premium will be. This is because higher payroll increases exposure to risk.
Claims History
A clean claims history helps reduce costs. Repeated claims for injuries like burns or eye strain can drive up your premiums.
How are Welder 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
Add up the total annual payroll for all welding 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 welders, which is $3.97 per $100 of payroll.
Your current policy will include your specific rate details.
Let’s work through an example together:
Let’s say you own a small welding business. Your team includes three full-time welders and one full-time receptionist.
Your team needs to be covered by a workers’ compensation insurance for welders policy, which you pay for and provide. Let’s use the formula to figure out your premium.
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:
Each welder earns $22/hour. Multiply that by 40 hours per week and 52 weeks per year for an annual payroll of $45,760 each. For three welders, that’s $137,280.
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
Welders are classified under class code 3365, with Massachusetts’ rate of $2.58.
Receptionists qualify for class code 8810, with Massachusetts’ rate of $0.06.
Step 3: Apply the Formula
Now, let’s calculate the workers’ comp premium for the business:
Class code 3365 (welders): $137,280 ÷ 100 x $2.58 = $3,542
Class code 8810 (receptionist): $39,520 ÷ 100 x $0.06 = $24
Annual premium: $3,542 + $24 = $3,566
Monthly Premium
$297 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 Welders (3365)
To get a sense of what each 3365 full-time welder will cost, here is an average premium of the costs for a few 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 does. Welding can be high-risk, and having the right coverage ensures your team is protected in the event of an accident.
Key factors to look for in an insurance provider:
- Reputation: Pick a provider with a strong track record of claim efficiency.
- Financial Strength: Ensure they have the resources to pay out claims promptly.
- Customer Service: Responsive customer support is vital for quick issue resolution.
- Welding Expertise: Providers experienced with welding risks offer better coverage solutions.
What does Workers' Comp Insurance cover for Welders?
A workers’ comp policy for welders includes:
- Medical Expenses: covers treatment for illness or injury on the job
- Lost Wages: Provides partial income replacement during recovery
- Death Benefits: Supports families financially in the event of a workplace fatality
- Legal Protection: Protects welding businesses from employee injury-related lawsuits
How can I make Workers' Comp cheaper?
Welders can implement the following strategies to manage and reduce workers' comp costs:
Create a Safety Program
A comprehensive safety program tailored to the risks welders face is essential for preventing injuries. Key elements include:
- Enforce the use of Personal Protective Equipment (PPE), including welding helmets, fire-retardant clothing, gloves, and respiratory masks.
- Implement a Lockout/Tagout (LOTO) procedure to ensure machinery is completely de-energized before maintenance or repairs, preventing accidental startups.
- Conduct regular safety training sessions to reinforce proper equipment handling and emergency response techniques.
Require Certification for Welders
Only hire certified welders who have been trained and accredited by reputable organizations like the American Welding Society or another recognized certifying body. Certification ensures workers have the necessary skills and knowledge to handle complex and hazardous tasks safely.
Ensure Proper Classification
Accurate classification of employees is crucial for managing workers' comp costs. Welders should be assigned the appropriate class codes to avoid overpaying premiums or compliance issues.
Maintain Equipment
- Regularly inspect and maintain welding tools to reduce the risk of accidents caused by faulty machinery.
- Replace or repair damaged equipment promptly to ensure worker safety.
Ask About Discounts
Proactively communicate with your insurance company about the safety measures you’ve implemented. Some companies offer premium discounts for businesses with robust safety programs and low claims histories.
Discover your Potential Savings
Don’t overpay for welder's workers’ comp! Use our online calculator to find out how much your premium should really cost.
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.
The question people ask us most often is, “Does my business need workers comp?” This often leads to the second-to-most frequently asked question: ”Do owners need workers comp?”
