Most states require businesses carry workers' comp insurance and 74% of states require it for employers regardless of size, meaning most commercial insureds incur costs to cover potential worker injuries.
A range of factors, including location, business type, claims history and payroll size, affect how much workers' comp insurance costs a business.
Additionally, the type of business can have a major impact on workers' comp premiums, according to Trusted Choice. For example, hotels have an average cost (per employee, per hour) of $1.02, which works out to an average annual cost of $2,141 per full-time worker. For construction firms, which see the highest average workers' comp costs, the average annual per-employee cost is $5,544. Even small construction companies see an average annual cost of more than $3,200. On average, small businesses pay about $47 a month for workers' comp coverage, working out to an annual cost of around $560.
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