Essential Guide to Workers' Compensation Coverage
This comprehensive guide explains the essentials of workers' compensation insurance, highlighting state differences, cost factors, and job classifications. Understanding these elements helps businesses make informed coverage decisions and ensure employee protection effectively.
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Workers' compensation insurance is a mandatory requirement for most businesses across the United States, with the exception of Texas. It serves as a crucial safety net, ensuring employees are protected in case of work-related injuries or illnesses. States regulate this insurance, leading to variations in costs and regulations from one state to another. On average, the expense per $100 of payroll ranges from $0.75 in Texas to $2.74 in Alaska. The National Council on Compensation Insurance (NCCI) classifies jobs into over 700 categories, helping determine individual premiums based on the inherent risks of each job type. Comparing quotes before purchasing is vital; for instance, sectors like construction pay higher premiums, about $1.07 per hour, whereas office jobs pay around $0.22.
