How Much Does Workers' Compensation Insurance Cost?

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CoverWallet estimates that coverage costs between $1,000 and $3,000 per million dollars of coverage per year. TechInsurance indicates a median range of $730 to more than $1,400 and a median of $728 per year.

A startup with a few smaller contracts or clients, and limited liability risk, will likely pay toward the lower end, between $600 and $900 per year. A startup with one or more large contracts with more significant potential damages should expect to pay more than $1,500 per year.

For a startup company with the majority of workers falling into the office employee category, a typical policy might fall in the range of $2,000 to $3,000 per year. Since the risks of injury are much lower for software developers , salespeople, and marketers than for construction workers, the costs should reflect the reduced risk.

The cost of workers' compensation insurance varies from state to state. It bosnia and herzegovina phone number data also depends on the number of employees, total payroll, and the risk category of each employee's job responsibilities.

Average Costs and Cost Range for Startups
The average cost of compensation for an accident at work.
The average cost of workers' compensation. (Image source: insureon.com )
According to the National Academy of Social Security , the average cost per $100 of payroll ranges from $0.75 (Texas) to $2.74 (Alaska).

The good news is that the average cost per state is, thankfully, closer to a dollar ($0.98) per $100 than Alaska's highest. Texas's low price is another advantage in terms of the cost of starting a business in downtown Austin ($0.75) compared to San Francisco ($1.85 in California) or even New York ($1.02).

But variations in these figures can also be affected by different representations of high-risk occupations. According to the National Council on Compensation Insurance , the cost per $100 of wages for office work averages $0.12, while for landscaping, a policy would cost an average of $6.94 per $100.