CSIS Insurance Services, Inc. Blog
Most states require business owners and employers to get workers compensation for their employees. The extent of coverage and who are covered under workers’ compensation varies from one state to another. However, one thing is sure; the insurance policy helps safeguard your business by providing financial protection to your employees.
On the other hand, employers' amount of premium also differs from one business to another. Data showed that the workforce type and size correlate with workers' compensation premiums that employers should pay.
Type Of Industry Influences Premium Amount
Statistics revealed that businesses that are classified as high-risk tend to pay a higher amount of premium. Hence, the type of industry wherein you belong is an indicator of the premium you will pay for the policy.
Among the industries, the construction and contracting sectors pay the highest amount of workers’ compensation premiums. Companies that belong in the said industry spent an average of $3,264 annually on premiums. It is not surprising since a big chunk of employee fatalities in the private sector occurs in construction sites. Work in the construction industry is more prone to injuries and other hazards than other sectors.
Landscaping and cleaning services industries are also among the high-risk businesses after the construction and contracting industry. Employers of landscaping businesses pay an average of $2,769 yearly premium while cleaning services companies spend an average of $1,813 every year on premiums.
On the other hand, the bottom three industries are only paying less than $500 on their annual premiums. The finance and accounting industry has the lowest premium payment among the industries. Finance and accounting firms only spend an average of $396 yearly premium, 87% less than those in the construction and contracting industry. The main reason is there are fewer risks in doing office work.
Workforce Size And Insurance Cost
The number of employees also impacts the amount of premium an employer will pay for the insurance coverage. Data showed that large companies are more likely to spend more on premiums than smaller ones.
Businesses that employ more than ten employees pay the highest insurance premium. On average, the employers pay a $1,983 yearly premium. Meanwhile, companies with ten and nine employees spend an average annual premium of $1,261 and $1,058, respectively.
In comparison, businesses with one to three workers are more likely to pay fewer premiums. An employer with one worker will only pay an average of $435 premium annually. Companies with two employees will spend an average of $531 every year on premiums, while those with three workers will pay $630 annually.
The type of industry and number of workers are among the determinants of your premium cost. However, these two factors are not the only drivers of your premium cost. The state, annual payroll, and claims history also play a role in the premium you should pay.
At CSIS Insurance Services, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.
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