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Workers’ Compensation Rates
90% of our customers pay around $81 in premium per month for workers’ compensation insurance with The Hartford.** Keep in mind that this rate can be affected by a number of different factors specific to your business.
Whether you own a small, medium or large business, if you have employees, it’s likely you’ll need workers’ compensation insurance. Workers’ compensation rates for this type of insurance, commonly known as workers’ comp insurance, can change each year and have an impact on your business’ finances.
If your employees get hurt or sick from their job, workers’ compensation benefits can help cover:
- Medical bills
- Lost wages
- Disability payments
- Funeral expenses if they lose their life in a workplace accident
- Workers’ comp insurance also covers employment liability claims. So, if your employee or their family sues you, it can help pay for your business’ legal costs.
What Determines a Workers’ Comp Rate?
We know workers’ comp can seem complex. You may be wondering, “How is workers’ comp calculated?” But don’t worry, we’re here to help you understand what goes into your workers’ comp rate.
Insurance companies calculate your rate by looking at several factors, including:
- Workers’ compensation class codes : These codes are assigned by the National Council on Compensation Insurance (NCCI) or your state. Each employee gets a unique code based on the type of work they do. You can use this classification system to calculate your workers’ compensation rates.
- Payroll: As a business owner, you’ll need a certain amount of workers’ comp insurance based on every $100 of payroll.
- Experience modification number: This number takes into account your business’ claims experience and loss history. The safer your business, the lower your experience modification number. These numbers are subject to state requirements and not every policy may have one.
- Industry risk: Typically, high risk businesses might see higher premiums for insurance. Risk factors can include financial and physical risks to your business, employees, vendors and customers.
- State laws Claims history: If your business hasn’t caused any employee injuries or property damage, you may have a lower insurance rate.
- Coverage limits: The more coverage you add to your policy and the higher the limits, the more you’ll pay. Sometimes, choosing a higher deductible can help lower your monthly or annual premiums. Bundling your small business insurance policies can help save on insurance costs. For example, bundling your workers compensation insurance with a business owner’s policy (BOP) could help you save money.
The best way to find the right coverage at the right price for your business is to get a quote from more than one insurance company. You can also work with insurance agents to get the pricing you need. From there, you can compare insurance premiums. To get started, get a quote from us today.
Workers’ compensation laws will vary depending on the state you’re in and can impact what you pay for coverage. Be sure to check with your local laws before buying workers’ comp insurance to make sure you have enough coverage.
Workers’ Compensation Rates by State
Find your state’s average cost of workers’ compensation premium in the table below. Keep in mind that workers’ compensation rates can vary greatly from state to state.
Rates by State
| State | Average Issued Premium** |
|---|---|
| AL | $1,448 |
| AR | $998 |
| AZ | $1,116 |
| CA | $1,600 |
| CO | $759 |
| CT | $1,555 |
| DC | $1,081 |
| DE | $976 |
| FL | $1,149 |
| GA | $1,041 |
| IA | $505 |
| ID | $1,211 |
| IL | $1,062 |
| IN | $862 |
| KS | $946 |
| KY | $837 |
| LA | $1,069 |
| MA | $990 |
| MD | $839 |
| ME | $1,220 |
| MI | $740 |
| MN | $1,181 |
| MO | $1,428 |
| MS | $1,435 |
| MT | $1,033 |
| NC | $1,009 |
| NE | $809 |
| NH | $1,149 |
| NJ | $1,079 |
| NM | $1,423 |
| NV | $906 |
| NY | $998 |
| OK | $1,150 |
| OR | $1,166 |
| PA | $935 |
| RI | $1,721 |
| SC | $1,234 |
| SD | $703 |
| TN | $1,109 |
| TX | $576 |
| UT | $666 |
| VA | $840 |
| VT | $1,300 |
| WI | $1,173 |
| WV | $557 |
Differences in each state’s rates have to do with a number of factors. Workers’ comp laws, for example, can impact which businesses need insurance and how much coverage they have to carry. Each state may also have a medical fee schedule, which details costs for workers’ comp treatments. If the medical costs are higher, it can increase the workers’ comp rate in that state.
How you get workers’ comp insurance can also affect rates. Being able to shop around for quotes means you can get coverage at the right price for your business. But in some states, like North Dakota, Ohio, Wyoming and Washington businesses have to get coverage through state fund workers’ comp. That means these companies pay whatever rates their state sets for workers’ comp.
Learn more about your state’s workers’ compensation insurance.
What Industries Have the Highest Workers’ Compensation Rates?
Generally, the higher-risk a job is, the more it’ll cost for workers’ compensation insurance. Some high-risk jobs include:4
- Police officers
- Firefighters
- Electrical contractors
- Lumberjacks
- Construction equipment operators
- Telecommunications repair workers
Don’t forget, workers’ compensation class codes are only one factor in a workers’ compensation rate. So, your business’ specific cost can change depending on other factors.
2024 Workers’ Comp Rates Trends
Workers’ comp rates in 2023 were lower than in 2022. But workers’ compensation trends in many states show workers’ compensation costs continue to be competitive in 2024.2 Rate deductions in 2024 will likely be more common than rate increases but can vary.3 To learn more and see what your premium will be, get a workers’ compensation quote today.
Last Updated: March 11, 2024
** Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
1 USA Today, “The Most Dangerous Jobs in the U.S. Include Electricians, Firefighters and Police Officers”
2,3 USI Insurance Services, “2024 Commercial Property & Casualty Market Outlook”
Additional disclosures below.