Cost of Worker's Compensation Insurance

The cost of insurance will vary depending on how hazardous jobs in your business classification are, based on the basis of the past experience in your industry and your gross payroll. It will, for example, cost more to insure blasters than it will barbers. Employers are classified for worker's compensation insurance purposes by the predominate business of the employer and not the specific job.

For example, in a manufacturing risk situation, the product manufactured determines the business of the insured employer. In other words, General Motors would be classified as an automobile manufacturer. There are many different kinds of jobs involved in the manufacturing of automobiles, some of which are more hazardous than others. Nonetheless, all of these jobs are being performed for an employer engaged in the business of manufacturing automobiles, and therefore, all of the employees' payrolls would be classified in the same classification.