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Workers’ Comp Rates Decrease for Fifth Straight Year

Updated 03:47 PM EST, Thu February 28, 2019

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Workers’ Comp Rates

It doesn’t matter what type of business you own – small, medium, or large. If you have employees, it’s likely you’re keeping your eye on workers’ comp rates. Almost every business in the United States is required to have some sort of workers’ compensation insurance. Learn more about this coverage and how workers’ compensation rates are determined below.
 

Employer Classification for Workers’ Compensation

Workers’ compensation insurance, which is also known as workman’s comp insurance, provides benefits to employees for injuries or illnesses received on the job. This type of coverage will support an injured employee through medical care, wages from lost work time, and more. Workers’ compensation insurance covers a deceased worker’s family with a financial benefit if they die. If a worker’s family decides to sue the company, workman’s comp can help cover related legal fees.
 
Businesses are identified by certain employer classification codes, which affect the workers’ comp rates for their businesses. The system defines which type of work has more risk to employees. For each classification, the business owner is responsible for paying a certain amount for workers’ comp insurance based on every $100 of payroll.
 

Highest Workers’ Compensation Rate

The amount an employee can receive for workers’ compensation benefits varies from state to state.
 
For example, the Department of Labor & Industry in Pennsylvania set the maximum payable compensation for injuries occurring after Jan. 1, 2019 at $1,049 per week.* The statewide average weekly wage increase is 2.3 percent.
 
The Workers’ Compensation Act states injured workers’ can receive wage-loss benefits equal to two-thirds of their weekly wages if they’re injured or ill from a work-related cause. The Act also includes minimum and maximum adjustments depending on the employee’s average weekly wage.
 
Here are the adjustments for employees in Pennsylvania, as provided by the state’s Department of Labor & Industry:
 
  • If your employee’s average weekly wage is between $786.76 and $1,573.50, their weekly compensation rate is 66 2/3% of their average weekly wage.
  • If an employee’s average weekly wage is between $582.78 and $786.75, the weekly compensation rate is $524.50.
  • If an employee’s average weekly wage is $582.77 or less, their weekly compensation rate is 90% of the average weekly wage.
Just as the cost of workers’ comp varies by state, so do the rates for job classifications. Remember that the highest workers’ comp rates are associated with jobs with more risk. For example, people who work as police officers, fire fighters, medical professionals, correctional officers, HVAC technicians, or telecommunications repairs are at a higher risk of being injured on the job than different job positions.
 
If your employees work as accountants, their workers’ compensation rate will be lower than a person working as a lumberjack. This is because there is less injury risk with accounting than working as a lumberjack.
 

Workers’ Comp Insurance Rate Decrease in 2018-2019

Workers’ compensation rates in 2018 were mixed. But 2019 rate filings for workers’ compensation rates shows most types of workers’ comp insurance will decrease for the fifth year in a row for many states.
 
If you have any questions about workers’ compensation insurance or rates in 2019, speak to one of our insurance specialists at 1-855-829-1683. Get a quote today online – it’s fast and easy. We’re here to help you and find you the best coverage to protect your business and employees.
 
 
* Department of Labor & Industry, “2018 Statewide Average Weekly Wage Announced,” https://www.dli.pa.gov/Businesses/Compensation/WC/claims/Pages/Statewide-Average-Weekly-Wage-(SAWW).aspx
 

Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In CA by Sentinel Insurance Company, Ltd. (CA license # 8701) and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including issuing company, Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.