The premium to be remitted regularly to an insurance company for the workers’ compensation is one thing that is ever a concern to any employer. The amounts that businesses pay in premiums for workers comp are staggering, the past year having seen remittances of over $45 million nearly clocking the $50 million mark and this exclusive of the premiums paid to the state workers comp funds.
One thing that you should appreciate and know of is that workers compensation insurance is a must for most, if not all, businesses in the United States. The premiums paid for these are a percentage of the payroll and the calculation of the premiums is a matter based on the risk level. From this what we see is that the workers compensation calculation is a flat percentage rate per $100 of the projected payroll and the claims experience of the business and other factors will come into play as to modify this percentage. By and large, as it is often the case with most companies, these mods are often based on a company’s previous injury cases and claims so far.