Independent contractors are not covered. You may purchase worker's compensation insurance in the remaining states from either various insurance companies or from a state compensation fund. A state compensation fund is an insurance company that is established to ensure coverage is available to all employers. How to lower your premiums How to minimize the risk of claims When an accident occurs Worker's compensation premiums are based on the amount of your payroll. The higher your payroll, the more you will pay in premiums.
Premiums also vary depending on the work function or job classification of an employee.
For example, the premium for a construction worker would generally be much higher than a premium for a clerical worker. Employers are expected to accurately report payroll by classification of work performed. An advisor can help you find which classes apply to your employees.