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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.

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Steve Hallo

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

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