Average Workers’ Compensation Insurance Cost
Posted April 15th, 2021 by Anthony Carbone.
Categories: Workers Compensation.
Employers in New Jersey are required to protect their employees from work-related injuries by carrying a workers’ compensation insurance policy. This often raises questions concerning the average workers’ compensation insurance cost. Every state has its own rules that govern workers’ compensation, which means that one of the largest determining factors is location.
If you have been injured in a work-related accident, contact an expert North Bergen Personal Injury Attorney to learn about your legal rights.
Small Business Premiums: Insureon Statistics
Numbers compiled by Insureon, a major insurance company in the United States, show that its customers pay a medium premium of $560 annually for workers’ compensation coverage. The company is quick to point out that many businesses fall on the extremes, with high-risk businesses — like construction companies — recording the highest premiums.
Other statistics published by Insureon reveal:
- 30% of small business customers pay $400 annually as workers’ comp premiums
- 39% pay between $400 and $800 annually for the same coverage
- Larger businesses pay higher premiums
Factors Affecting Workers’ Compensation Costs
Every business carries unique risks, which is one of the main reasons there is no standard workers’ compensation cost. Some of the factors that come into play when determining your premiums include:
- Class Code
The National Council on Compensation Insurance (NCCI) describes over 700 class codes that show the level of risk for each job, which help determine premium amounts. Businesses with high-risk class code employees are likely to pay more for workers’ compensation.
- Type of Business
Industries that carry a higher risk of injury often face higher workers’ comp premiums. Construction companies, for instance, pay some of the highest premiums as they are responsible for over 20% of worker fatalities in the private sector.
- Number of Employees
The more employees a business has, the higher the odds that one of them could get injured at work. As such, businesses with many employees often face higher workers’ compensation rates.
Workers’ Compensation Costs by State
Workers’ compensation regulations and requirements vary from state to state. Some states require micro-businesses to care workers’ compensation insurance while others require companies with at least one employee to carry a policy. Some notable cases include:
- Real estate agents and ranchers in New Mexico are not required to have coverage
- Sole proprietors and business partners in New York are exempt from workers’ comp obligations
- Children under 22 working for their parents don’t need coverage in North Dakota
- Business owners in Alaska with at least one employee must have coverage
Talk to a North Bergen Personal Injury Attorney
Workers’ compensation is unique in that there is no one-size-fits-all workers’ compensation insurance cost. The value of your premiums will usually depend on the state your business is located in, the type of industry, the work done by your employees, and your claims history.
Attorney Anthony Carbone, an experienced North Bergen Personal Injury Attorney, has been fighting for the rights of injury victims in New Jersey for over 30 years. Contact the Law Offices of Anthony Carbone at 201-733-2230 to schedule a consultation.
