Workers' Compensation Premium Rate

Workers' Compensation Premium Rate refers to the amount an employer pays per $100 of payroll to fund workers' compensation insurance. This rate is determined based on the industry risk level, the company's claims history, and other factors. Higher-risk industries, like construction, typically have higher rates, while lower-risk industries, like office work, have lower rates. The premium rate helps insurers estimate the cost of providing workers’ compensation coverage, which protects employees injured on the job by covering medical expenses and lost wages. Employers pay this premium regularly to ensure coverage is available if needed.