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How Much Do Employers Pay for Workers' Comp?

Employers must pay workers' compensation insurance expenses out of their own pockets — these costs cannot be passed along to employees.

Charging employees, withholding or deducting pay to cover the cost of workers' compensation is illegal and may be punishable, depending on state law.

This means that the employer is responsible for paying for all of the expenses associated with workers' compensation, including premiums and benefits.

How Much Do Workers' Compensation Claims Pay?

Workers' compensation benefits are determined on a case-by-case basis. The amount of benefits, and over what time they are paid out, depends on a variety of factors, including:

  • The nature and severity of the injury or illness
  • An employee's wages and the length of time that employee is unable to work
  • The cost of healthcare in that region
  • State laws dictating the amount of benefits an injured worker can receive
  • Whether rehabilitation or retraining is required

If an employer has workers' compensation coverage, the insurance carrier would pay for these expenses. If the employer does not have adequate workers' compensation insurance, the employer may be liable for all of the costs associated with the injury or illness.

How Much Do Workers' Compensation Premiums Cost?

The amount that an employer pays for workers' compensation insurance will depend on a number of factors, including:

For small businesses, workers' compensation insurance may cost anywhere from a few hundred dollars to a few thousand dollars.

To find out how much workers' comp might cost your business, request a free quote from our team. We'll help you compare rates from multiple insurance carriers to find the best policy for your needs.


Tags: workers compensation, workers compensation insurance cost, workers compensation insurance