Workers' Compensation Insurance Cost – Forbes Advisor - Forbes
Workers' compensation insurance pays for medical care, lost wages and other benefits should an employee get hurt or sick on the job. It is an important insurance coverage and one that is required of businesses in most states.
The average cost of workers' compensation insurance is $1 per $100 in payroll, according to the National Academy of Social Insurance. Small businesses pay an average of $542 per year for workers' comp, according to Insureon.
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How Much Is Workers Comp Insurance?
Workers' compensation insurance costs an average of $45 per month, according to Insureon. That's $542 per year.
Slightly less than a quarter (23%) of small business owners pay less than $30 for workers' compensation insurance, 40% pay between $30 and $60 per month, and 37% pay more than $60 per month, according to Insureon.
Workers' Compensation Insurance Costs by State
The national average cost of workers' compensation insurance is $1 per $100 of payroll, according to the National Academy of Social Insurance.
| State | Cost per $100 of payroll in 2017 | Cost per $100 of payroll in 2018 | Cost per $100 of payroll in 2019 | Cost per $100 of payroll in 2020 | Cost per $100 of payroll in 2021 |
|---|---|---|---|---|---|
| Alabama | $1.06 | $1.01 | $1.03 | $0.94 | $0.91 |
| Alaska | $2.03 | $1.92 | $1.63 | $1.47 | $1.30 |
| Arizona | $0.88 | $0.84 | $0.78 | $0.70 | $0.67 |
| Arkansas | $0.85 | $0.80 | $0.70 | $0.67 | $0.63 |
| California | $1.94 | $1.78 | $1.63 | $1.36 | $1.34 |
| Colorado | $0.97 | $0.93 | $0.86 | $0.76 | $0.71 |
| Connecticut | $1.24 | $1.13 | $1.09 | $1.04 | $1.04 |
| Delaware | $1.47 | $1.50 | $1.29 | $1.21 | $1.13 |
| Florida | $1.56 | $1.40 | $1.31 | $1.17 | $1.04 |
| Georgia | $1.10 | $1.08 | $1.01 | $0.95 | $0.89 |
| Hawaii | $1.52 | $1.51 | $1.55 | $1.56 | $1.62 |
| Idaho | $1.70 | $1.64 | $1.59 | $1.46 | $1.42 |
| Illinois | $1.10 | $1.02 | $0.95 | $0.86 | $0.82 |
| Indiana | $0.75 | $0.70 | $0.68 | $0.64 | $0.60 |
| Iowa | $1.50 | $1.35 | $1.21 | $1.15 | $1.12 |
| Kansas | $1.06 | $0.98 | $0.96 | $0.91 | $0.88 |
| Kentucky | $0.92 | $1.01 | $0.94 | $0.82 | $0.78 |
| Louisiana | $1.55 | $1.51 | $1.48 | $1.30 | $1.36 |
| Maine | $1.40 | $1.33 | $1.28 | $1.24 | $1.19 |
| Maryland | $1.04 | $1.01 | $0.92 | $0.80 | $0.79 |
| Massachusetts | $0.75 | $0.73 | $0.70 | $0.64 | $0.61 |
| Michigan | $0.74 | $0.71 | $0.66 | $0.61 | $0.57 |
| Minnesota | $1.09 | $1.02 | $1.00 | $0.98 | $0.91 |