Unlike other types of small business insurance that it is regulated by the States independently, Workers Comp Insurance is a must requirement for all businesses with employees except in Texas. However, the cost of this insurance coverage varies significantly from one state to another.
What is workers compensation insurance
This is a form of financial benefits that are designed to cover employees who incur injuries at their places of work. The insurance is designed to cater for the costs of treatment of the injured employee as well as providing for the loss of income when the worker is unable to work. The workers’ compensation laws also account in cases where an employee is injured when traveling to meet a customer of your business.
Workers compensation insurance California is designed to cater for all your insurance needs all the time. We provide policy for businesses across all the states at convenient rates.
Why Does the Workers Comp Insurance Coverage Vary From One State to Another?
Just like in other areas, naturally, if you give a problem to fifty people and request them to solve, there is a higher likelihood that there will be 50 different solutions, that therefore explains the variations we have in the insurance coverage across the different states.
For example, In Florida, the insurance coverage rules that all the involved professionals in the construction industry are required to cater for the coverage themselves, even in cases where they have no employees.
On a similar situation in Colorado, the rules state clearly that you can exclude yourself from coverage if you are volunteering for a ski-area operator.
Varying insurance coverage requirements have different prices. Below is an explanation showing how much the Insurance costs around the United States, per $100 in payroll.
The Average Workman Comp Insurance Cost Per $100 In Payroll By State.
The insurance costs range from $.75 in Texas to $2.74 in Alaska as of the report data of 2012. In this scenario case, they included all kinds of jobs; this means that they do not accurately reflect the various variations within the involved states.
Employer Costs per Hour Worked for Private Industry Workers
According to the US Department of labor in 2014, those with employees in construction, natural resources, and maintenance paid mainly far more for the Insurance than those whose employees were doing office work or sales.
With this type of information, it is easy to conclude that there is a one-factor causing Workers ‘ Compensation cost so high in Alaska: the larger percentage of that state’s economy depends on the extraction of natural resources.
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