Highest Workers’ Compensation Rates and Influencing Factors

Updated on September 28, 2022

Workers’ compensation rates vary state by state and are valuable for any business. Some industries have the highest cost workers comp than others. Some states have lower rates than neighboring states. Why does this happen? And what are the factors which influence these rates?

Workers’ compensation rates are influenced by many factors, including demographics, industry, geography, and labor laws. But most importantly, their rates are affected by the number of claims filed each year. This means that the more claims filed, the higher the rate.

This article will provide insight into the industry’s highest cost workers comp and influencing factors. 

Industries Having Highest Workers’ Compensation Rates

If businesses see the security issue as something they must avoid instead of investing for their employees and business, in that case, corners are cut, and employees are injured. The most recent Bureau statistics indicate that in 2013, approximately 3 million workers in the private sector were afflicted with injuries or illnesses reported by their employer. The majority of these cases caused significant absences from work, restrictions on work activities, or even job changes.

Specific industries are more susceptible to injury than others. They also require the most constant and sophisticated safety procedures to protect their employees in a potentially hazardous work environment. If employers ignore safety, the effects on families and employees could be catastrophic for families and employees. Here is a list of industries with higher workers’ compensation rates than others. 

The industries with the highest workers’ compensation rates include:

  • Messengers and couriers: Professional messengers, a tiny sector, are prone to 6.4 accidents per 100 employees.
  • Air transportation: This consists of those who pilot aircraft, are aircraft mechanics, and are employed in support roles such as freight and cargo agents. In this sector, workers are prone to 5.8 accidents per 100 employees.
  • Wood product manufacturing: Factory workers and employees in factories that manufacture wood products such as logs are subject to an incidence of injury in the range of 5.9 per 100 employees.
  • Animal production: People in charge of raising and feeding animals to slaughter have the second-highest number of injuries, with 6.6 incidents per 100.
  • Nursing and residential care: The workers in this sector suffer the highest injuries. Within the private market, there are about 6.5 injuries per 100 employees. However, in government-run facilities, the rate of injuries rises to 11.7 per 100 employees. If the two sectors are combined, it is the one with the highest number of injuries.

Factors That Influence The Compensation Rates

Several factors contribute to the high costs of workers’ compensation insurance. These include:

Employer size: Small companies tend to have lower rates because they are less likely to have experienced workers. Large companies can afford better benefits packages and have more significant resources to invest in training programs.

Industry: Industries considered dangerous are more likely to experience workplace injuries. Industries with high rates of injuries may need to implement stricter safety measures.

Location: States with low unemployment rates tend to have fewer jobs available, so workers must compete harder for employment.

The workers’ compensation claims history of your business: A company’s history of workers’ comp claims will affect its overall rating. Companies with a good record of paying claims will receive a higher rating. Claims paid out within 90 days of filing will also help improve ratings.


Workers’ compensation rates vary from state to state, but certain factors influence their rates. These include the number of employees working in the area, the type of industry, and the amount of insurance coverage available, which is mentioned in detail. Contact a professional advisor for more information.

The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.