In 2024, the average workers' compensation for insurance cost nationwide is $46 monthly per employee. This insurance protects your employees and business by covering work-related injuries or illnesses that happen on the job.
Your workers’ comp premium depends on a few main factors:
The National Council on Compensation Insurance (NCCI) assigns each job a class code, which reflects the level of risk involved. Most retail businesses fall under class code 8017, covering general retail employees.
Workers’ comp rates for retail businesses vary slightly depending on the type of store you operate. For example, general retail stores may have different rates than specialty shops or stores that handle higher-risk merchandise.
To learn more about how your specific type of retail business is classified, check out our Guide to Workers’ Comp Codes to Retail Stores.
Your premium is calculated based on your total payroll. The more employees you have, the higher your premium will be. More workers mean more potential for injuries.
Businesses with a history of frequent injuries will see higher premiums. On the other hand, a clean claims history can reduce rates over time.
Here’s the formula:
Determine the total annual payroll for all store employees.
If you don't have the annual numbers, calculate each employee's hourly rate multiplied by their weekly hours and the number of weeks worked per year.
Find the workers' comp rate for your industry and state:
Suppose you own a retail business in Connecticut with three part-time employees. Each employee works 30 hours per week and earns $16 an hour. You, as the owner, are excluded from coverage. To ensure your business and employees are protected, you need a retail store workers’ comp policy.
$16/hour × 30 hours/week × 52 weeks = $24,960
$24,960 × 3 = $74,880
The national average retail rate is $1.66, but Connecticut’s rate is $1.71 per $100 of payroll.
($74,880 ÷ 100) × $1.71 = $1,282 per year
Your annual premium would be approximately $1,282.
This is an estimate and could vary based on additional factors like state regulations and discounts.
To give you an idea of what you might pay for workers' comp insurance in different states, here’s an example of average costs per employee for a few states.
When shopping for plumbing workers' comp insurance, the price isn’t the only thing to consider. You should also consider the reliability of the insurance company, how quickly they process claims, and their customer service.
Choose a company with a solid reputation and experience in the plumbing industry to ensure your employees get the help they need fast if they're hurt on the job.
Workers’ comp insurance provides protection for a variety of job-related injuries and illnesses.
Here’s what it typically covers:
Want to save money on workers’ comp premiums?
Here are some practical tips:
Want to learn more about retail workers' comp costs? Use our online tool to get a tailored quote and find out how much you could save!
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
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