There are no standard premiums. The cost to employers is considered another cost of doing business and is presumably reflected in the selling price of their services. Another principal is the strict liability of the employer, regardless of any fault of the injured employee. Contributory negligence, such as failure to wear a safety helmet or failure to conform to posted safety regulations, will not usually affect the employer's liability. Worker's compensation laws vary from state to state.
Statutes require the contractor to provide worker's compensation insurance.
Statutes usually provide that a worker's comp claim is the only remedy an employee has against his employer. However, during recent years, workers in many states have sued their employers for damages in addition to workmen's comp. The usual basis is some form of gross negligence on the part of the employer. Premium costs are computed by multiplying each employee's total wages, exclusive of overtime pay, by the rate specified for his classification. Consequently, it pays a contractor to show accurately the work classification its employees are actually performing.