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Workers’ Compensation Insurance

Workers’ Compensation Insurance Costs

How much does Workers’ Compensation insurance cost?

NEXT offers customized workers’ compensation insurance that’s tailored to your business. Workers’ comp is one of the most expensive types of coverage for any business as it helps to cover expenses for medical treatment, lost wages and other costs if you and your employees have a workplace injury. 

If you are in construction or a high-risk profession you can expect to pay more than the average amount. Workers’ comp can cost as little as $12.20 monthly or $146 annually, but certain professions will have a higher premium. The exact price you’ll pay depends on your particular circumstances. 

 

What NEXT customers typically pay for Workers’ Comp insurance

54% of our customers pay under $150 per month on workers’ comp insurance. Here is the breakdown of what our customers pay for this type of coverage.

Monthly Workers’ Compensation insurance costs 

  • Under $25: 4% of customers
  • $26 to $45: 5% of customers
  • $46 to $75: 16% of customers
  • $76 to $100: 11% of customers
  • $101 to $150: 18% of customers
  • Over $150: 46% of customers

What factors influence the cost of Workers’ Compensation insurance?

There are several factors that determine the exact price you’ll pay for workers’ compensation insurance, including:

The type of work you do

If you’re a financial advisor, your insurance is going to be less than a construction business because the nature of your work is inherently less risky.

In general, jobs that include opportunities for employees to get hurt at work often have higher insurance costs.

How many employees you have

If you own a general contracting company and employ five people, your insurance is going to cost more than if you’re a contractor who works alone.

If you have employees, many states legally require you to purchase workers’ compensation insurance to cover work-related injuries.

The state where you work 

If you’re a bakery owner in Chicago you’re probably going to pay more for insurance than if you worked in a small town in Idaho. This is partly due to different states having different regulations and partly because, as a general rule, the more populous the area, the more expensive your insurance rates will be.

Your claims history 

Your record of losses and claims has an impact on your insurance fees. 

For example, if your assistant painter falls off a ladder and gets injured, incurring hospital and legal fees, you may see an increase in your premium at renewal time.

How high you set your limits

If you want to be covered for more incidents, you can select higher employer liability limits on your insurance policy. Higher employer liability limits will almost always increase the cost of your policy. 

Your work experience 

The number of years you’ve operated a business in your industry impacts your insurance rates. 

For example, if you’ve been a caterer for 12 years with no claims, you can expect to pay less than a caterer who’s been in business for one year because you have a proven history of workplace safety.

Note: It’s important to provide the most accurate information about your business when you get a quote for insurance to make sure you get the coverage that is right for you and any claims are processed without delays.

 

How are Workers’ Compensation insurance costs calculated?

An insurance premium is the amount you pay on a monthly or annual basis for your coverage.

An insurance company, calculates your premium by taking into consideration all of the factors listed above, such as the likelihood that you’ll make a claim and how many employees you have.

NEXT customizes your coverage to fit your exact business needs. After you answer a few questions with our instant quote process, we’ll share options with pricing for your business. 

We operate entirely online to make the process streamlined and easy. You can get completely covered in a matter of minutes and licensed advisors are ready to help if you need them.

 

What is the cost of Workers’ Compensation insurance for your profession?

So what is the average cost of workers comp insurance? Here are the median monthly premiums of workers’ compensation insurance in popular professions:

 

How can you reduce Workers’ Comp insurance costs?

You can take several steps to reduce your insurance costs and lower your premium rates: 

Keep your risk level low

A safety and training plan can help to limit the likelihood of filing insurance claims and raising your insurance costs, particularly if your small business involves dangerous work that could cause injuries.

For example, you might:

  • Develop a risk management plan
  • Develop a thorough training program for employees
  • Implement a work safety training program
  • Be active about minimizing hazards in the workplace 
  • Conduct regular safety checks to keep your job site safe
  • Create process checklists and reviews

Learn from previous claims

Analyze your previous claims and figure out what you could have done to avoid those risks. 

For instance, if you had a claim involving an employee falling off a ladder while repairing a shutter, you could invest in a more sturdy ladder, train your employees on safety precautions or decide to only repair shutters while on scaffolding. 

Pick the right limits and deductible 

Lower limits will save you money, but you will have higher risks if you don’t get enough coverage. And if you choose a higher deductible, you will pay less for the policy (a deductible is the amount of money you pay before your insurance policy kicks in).

Bundle more than one policy 

You automatically save 10% if you combine more than one type of policy together. For example, if you add a commercial auto policy to your existing general liability policy, you’ll save 10% right off the bat.

 

How do I get a quote for Workers’ Compensation business insurance? 

You can start an instant quote with NEXT to see if workers’ compensation business insurance is right for you. We’ll ask you some basic questions about how you do business, which we’ll use to create a customized insurance quote.

You can adjust the limits when you receive your quote. If you decide to purchase, you’ll be covered as soon as you’ve bought the insurance you want, and you’ll have instant access to your certificate of insurance. The self-service tools also allow you to pay premiums, add an additional insured and file claims.

Getting insurance through NEXT can be done entirely without talking to an agent. And if you do have questions, our licensed, U.S.-based insurance professionals are ready with the answers.

Contact us if you’re unsure which type of coverage and limit amounts are right for your business.

Start a free instant quote today.