How much will a Workers' Compensation Policy Cost?

The pricing of workers' compensation is determined by several factors, including the total amount of your company's payroll for which a specific rate is applied per $100. It also depends on the nature of the tasks performed by your employees, which is referred to as the classification rate, and the history of claims made in the past, known as your experience modifier.

Example

Fred owns an auto dealership and has three employees. He has past a claim that increases his experience modifier from 1.0 to 1.2.

• John earns $50,000/yr as an admin assistant (rate of 1%) = $500

• Steve earns $75,000/yr as a salesman (rate of 3%) = $2,250

• Mike earns $30,000/yr as a an auto detailer (rate of 5%) = $1,500

Add all the estimates and then multiply by the experience modifier 1.2.

Before State taxes, fees, and discounts, Fred can estimate his annual workers’ compensation to cost around $5,100.

Fred’s broker has access to multiple insurance carriers, and is able to find him a quote for $4,500! Do you trust your broker to shop for the best rates?