Choosing to forgo workers’ comp coverage puts your business athigh financial risk. Not only are you able to face a lawsuit for workplace accidents,
but you will likely be fined for breaking the law.
Remember, workers’ comp insurance protects not only your employees,
For example, if your insurance is compliant with
state law, an employee who receives benefits can’t sue you for their injuries
or lost wages. They can, however, sue you for things that aren’t covered under
The workers’ comp part of your policy. Employer’s liability insurance can also be contained on your policy to pay for court costs and legal fees if you’re
involved in this type of lawsuit.
How much does workers’ compensation insurance
cost? In 2017, the national average monthly cost for workers’
Compensation insurance through the Progressive Advantage® Business Program was
$192. Bear in mind, this is only an average. Your rate will depend on specific
facets of your business including your state, payroll and maintains history.
What is Workers
Insurance safeguards your employees and your business from work-related
accidents, illnesses, and even death. Virtually every state requires that
companies have insurance to cover medical costs and lost wages for employees that are injured or become sick on the job. If you don’t carry workers’ compensation
insurance, you might be responsible for those costs, and also be subject to penalties or fines from the state.
Happen even in the most secure of workspaces. Even if your worker has medical insurance, you are responsible for their medical costs should they suffer a
job-related harm or illness. Additionally, the employee is eligible for a
percentage of their regular salary during the time they are unable to work
because of their illness or injury. These costs are covered by workers compensation
insurance. If you don’t have insurance, you will have to cover these costs out of
How Much is Workman’s
In most states, the
Cost of Workman’s Comp insurance may vary between insurance companies as they
compete for clients. Despite the variability, all insurance companies foundation Workers’ Compensation premiums on the amount of payroll an employer has as well
as how dangerous the work is. Some larger employers will be impacted by their
past claims experience with premium credits for low claim experience and
increased premiums for those with more historical claims.
How to Get
Workers’ Compensation Insurance
The cost of Workman’s
Comp insurance is calculated based on a rate charged per $100 of payroll. Charges
Vary by state as well as based on the type of work employees are engaged in and
The businesses claims history. Though many business-specific elements are
Factored into an actual premium calculation, this simple formula is the basis
for determining the cost workers’ compensation premiums.