How Much Does Workers Compensation Cost?

Worker’s Compensation rates are set by the specific type of work the employee does. There are codes assigned to each type of job. Rates are then set based on the historical activity regarding injuries in each job code. Underwriters then look at the specific industry and the employer to see what their experience is and either assign a discount or a premium (rate over the average) based on the industry and employer. This is called a MOD rate.
Each class code rate is a percentage on $100 of payroll. The more dangerous the job duties, the higher the rate. Some insurance carriers won’t even write policies for certain job codes. A company can have multiple job codes as well. For example, you may have a company with office and clerical staff, production workers, outside sales staff, etc. Each job code would have the rate applied to those specific codes.
If you would like to learn more about this and other HR matters, reach out to a Human Resource Professional.