Workers Compensation Insurance Calculator

How are Workers' Compensation Premiums Calculated?

Workers compensation insurance is a specific type of protection that gives employees assistance in the event that they are injured or become ill while on-the-job. Note that while this is similar in concept to disability insurance, they are not the same thing and should not be treated as such.

Workers' compensation insurance, which is legally required most of the time for employers, specifically covers illnesses and injuries that are sustained while someone is performing the duties required by their job. Disability insurance also covers any injuries that someone might sustain while away from work, assuming that it still renders them unable to return to their employer.

Factors Influencing Workers Comp Insurance Costs

Just a few of the major factors that influence the amount your average business will pay for workers compensation insurance include but are certainly not limited to ones like:

1. Employee Classification. Every state has classification codes that vary depending on the type of work that an employee is performing. Each classification code has a rate associated with it, which is listed as per every $100. Therefore, the rate that you pay per employee will be influenced by their current classification.
2. Payroll Size. Workers' compensation rates are heavily dictated based on the amount you have in payroll. The more money you pay out to employees, the more you'll end up paying for workers' comp insurance as a result. Generally, the index rate is pretty stable across the state. Even still, more employees will equate to more money going to your insurance provider every month.
3. Claim History. As is true with most types of insurance, the amount you'll pay will be heavily influenced based on how often you "use" the insurance. The more claims you file, the riskier your business is seen in the eyes of the insurance provider. Therefore, they'll likely raise your rates in an attempt to secure the highest profit possible - meaning that you'll end up paying more than a business that never files any workers comp claims at all.
4. Industry Risk Factors. Again, it's important to look at workers' comp costs through the lens of risk. By taking you on as a client at all, insurance providers are assuming a certain amount of risk if a claim should be filed. Some professions are inherently riskier than others. If yours is a business with three employees who work in a safe, traditional office all day and never see outside customers, you'll pay less than an electrical contractor business filled with employees who work in dangerous environments all day long.
5. Location. This is a major factor in how much you'll pay for workers' compensation insurance as things like cost of living and average medical expenses will be taken into consideration. If your business operates exclusively in an area with high medical costs, you'll need to pay more for workers' compensation insurance because of it.

Premium Rates in Georgia

As is true with other types of insurance like general liability insurance in Georgia, premium rates can vary wildly depending on all the factors outlined above. Even the industry that you're operating in will play a role in how much you can expect your premiums to be.

Coverage Options for Georgia Businesses

Having said all of this, just because workers' comp in Georgia is rigidly managed doesn't mean that you lack options when it comes to the type of coverage you receive. Different carriers provide different packages, and you can always include optional types of protection depending on the unique threats that you face.

Note that the more coverage you add, the higher your premiums will go as a result. But when you consider the level of protection that you're offering to your employees, and the legitimate competitive advantage you're creating for yourself at the same time, it's an investment that most people find to be more than worth it. At BIS Benefits, we'll help you understand your coverage options in Georgia so that you can make the most informed decision possible at all times.