Workers Compensation…why is it so expensive??

Workers Compensation Insurance premium directly correlates to the cost of Health Care. In the United States, this has been a plaguing issue without resolve. The cost of out-patient services like Radiology, CAT Scan, MRI, etc. are among the most costly procedures in the world. Hospitalization costs are getting even more expensive with 24 hour stays costing over $10,000.A major factor in Workers Compensation premiums for you as the employer – Claim history, occupation description and payroll. Blue Collar jobs are the most expensive WC rates due to the riskier nature of their job. White collar occupations are the lowest.

To give you an example, Carpenters that are being paid less than $32 /hour are going to be close to $30 for every $100 in payroll. That’s a hefty additional expense to an employer. Office jobs in the clerical occupation are less than $1 for every $100 of payroll.

* in General Contracting, the higher you pay your employees the lower the WC insurance premium. Carpenters making over $32 an hour are going to cost you $15 per $100 in payroll.

When you get your next Workers Compensation renewal, remember that the main reason for the rate increase is the growing cost of health care.

Give us a call or fill out the Workers Compensation quote request form so that we can make sure that you are paying the least amount possible for this growing business expense.

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