Insurance providers must weigh several factors when determining the cost of workers’ compensation coverage. These may include:
Location—The cost of workers’ compensation policies may change depending on the state or area from which you operate.
Employees’ duties—The National Council on Compensation Insurance and state officials are responsible for assigning a workers’ compensation class code to all employees based on their duties.
Payroll and workforce size— In general, this means businesses that employ a larger workforce should expect to pay higher premiums. This is because the higher your business’s total payroll, the more workers’ compensation coverage you will need.
Company history—Providers will consider your organization’s experience modification number, which is determined by analyzing the history of incidents and future risk levels.