Search
 
Analysis

States with the highest per employee workers' comp costs

On average, the cost of workers’ comp per employee is around $78 a month nationwide.

In the five states with the highest average costs, workers’ compensation insurance totals out to more than 50 cents per hour. In the states with the lowest average, workers’ comp costs are rough 20 cents or less per hour. (Credit: Rawpixel.com/Shutterstock.com) In the five states with the highest average costs, workers’ compensation insurance totals out to more than 50 cents per hour. In the states with the lowest average, workers’ comp costs are rough 20 cents or less per hour. (Credit: Rawpixel.com/Shutterstock.com)

Overall, workers’ compensation premiums made up about 1.2% of the total cost of employing the average American, according to AdvisorSmith. The nationwide average cost per employee is $936 annually, or about $78 a month.

As anyone working in the sector knows, rates vary wildly based on region as each state has its own systems and requirements. For instance, businesses in North Dakota see an average yearly per employee cost of $376, the lowest in the nation. Rounding out the five states with the lowest average workers’ comp costs are Arkansas, Indiana, West Virginia and Utah.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Steve Hallo

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

More from this author

 

Recommended Stories

What is a managing general agent?

What is a managing general agent?

Jonathan Goeringer, Stephanie Pierce and JillAllison Opell |

MGAs can offer insurers a cost-effective entry into new or niche markets without having to make the typical expenditures associated with expansion.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.