Employers in most states must get workers’ compensation insurance, except Texas. Not having it could mean jail time, penalties, fees, and not being able to work. Buying from private insurers is the most common option.
All employers must get workers’ compensation insurance to safeguard their staff and business financially.
Some states require companies to buy workers compensation for contractors they hire.
Businesses hiring trainees or temporary staff require workers’ comp insurance.
If an employee gets injured at work and can’t work for a while, their medical expenses and lost income are typically the employer’s responsibility. Workers’ compensation insurance covers these costs, so owners don’t have to use business savings or deal with lawsuits.
Workers suffer 12,900 injuries per day, resulting in 7 million injuries annually. The financial impact is significant.
Common workplace injuries include sprains, soreness, and cuts.
More than 150,000 people get hurt at work, leading to lost money and time. This costs the economy over $170 billion in direct losses.
Check your policy for coverage details, but here are some examples of what is covered by directors and officers insurance.
If an employee gets injured at work, this policy pays for their medical expenses.
This policy pays for employees’ lost wages due to workplace injuries.
If an employee gets injured on the job and becomes disabled, this policy gives them some of their lost wages during that period.
If an employee dies due to a work injury, their dependents get a death benefit payout.
Some states offer job and mental health support for workers hurt on the job.
Three types of states affect premium costs for workers’ compensation: those with different requirements.
Local laws and high-risk jobs in some areas result in higher rates for workers’ compensation. New York recently increased the claim payout, which may have affected its workers’ compensation rate.
38 states have rates lower than $2 per $100 in employee wages. North Dakota has the lowest at $0.82, with Indiana, Arkansas, West Virginia, and Utah following closely. New York has the highest rate at $3.08, followed by California, New Jersey, Alaska, and Delaware.
Premiums for workers’ compensation insurance vary depending on the state. Although classification codes are consistent throughout the US, workers’ compensation rates are set individually by each state.
The basic estimation is:
Premium = (Payroll/$100) x Class Code Rate x Experience Modification Rate
A business with $100,000 in payroll may pay approximately $1,350 per year at a workers’ compensation rate of $1.35. But, only an insurance carrier quote can give you the final amount.
Shoot us your email and we’ll kick off a conversation to help get you a quote on the best coverage for your brand.