Business insurance cost by industry: what changes the price

Workers’ comp: the line where industry matters most

The U.S. Bureau of Labor Statistics measures what employers spend per hour worked. In June 2026 the private-industry average for workers’ comp was $0.43, or 0.9% of total compensation.⁠¹ Construction employers spent $1.10, financial activities $0.23. Dividing one by the other gives 4.8 times (our calculation). The table shows every sector.

Average employer cost per employee hour worked for workers' compensation and for health insurance, averaged across all workers in the group, plus workers' compensation as a percent of total compensation. Group averages mix high- and low-risk jobs, so they are not a premium rate for any single business. U.S. Bureau of Labor Statistics (BLS), National Compensation Survey, June 2026 (2026 Q2), private industry workers, released 9 Sep 2026.

BLS has announced that ECEC data from December 2026 will no longer include workers’ compensation costs, so June 2026 is likely the last of this series.⁠¹ These are averages across every worker in a sector, including clerks and managers. BLS states that they are not a premium rate for a single business, and they carry no state detail. For a real rate you need the class code.

Class codes turn the work into a rate

A comp policy does not charge one rate for your company. Payroll is split by class code, each with its own rate. Ohio’s state fund publishes base rates per $100 of payroll, effective July 1, 2026. Roofing (class 5551) is $5.7709; clerical office employees (8810) are $0.0466; plumbing NOC (5183) is $1.4612; tree pruning (0106) is $6.7604.⁠² Roofing is 124 times the clerical rate, and tree work is 145 times (our calculations).

Washington charges by hour worked instead of by payroll. In 2026, roof work (0507) is $5.793 an hour, tree care (0106) $7.0142, trucking NOC (1102) $3.8195 and clerical office work (4904) $0.2223.⁠³ Roof work is 26 times the clerical rate (our calculation).

Base rates set by the state fund before experience modification. Ohio and Wyoming charge per $100 of payroll; Washington charges per hour worked, and part is withheld from wages. Other states’ insurers file their own rates; see where rates are published.

Two practical points follow. A business with an office and a field crew should have both classes on the policy, and a premium audit checks that payroll was split honestly. And a state fund rate is not what a private carrier charges in your state; bureau states publish loss costs that carriers modify. See how premiums are calculated and premium audits.

Exposure bases differ by line

Workers’ comp follows payroll. The other lines use other bases, which is why an industry’s total cost is not one number:

• General liability is rated on payroll, receipts, sales, square footage or man-hours, depending on the class.⁠⁵ See general liability.
• Commercial auto is rated per unit, that is per vehicle.⁠⁵ A trucking firm’s biggest line is often auto, not comp. See trucking.
• Property is rated per $1,000 of insured value.⁠⁵

Insurer-reported figures for these lines exist for some business types; each industry page shows them with the company, the statistic (median or average) and the date. Do not compare an average from one insurer with a median from another.

What you are required to buy depends on the work

State law decides who must carry workers’ comp, and the thresholds vary by state: see workers’ comp requirements. Licensing boards add their own insurance minimums for licensed trades, and these differ between trades. Florida’s Construction Industry Licensing Board, for example, sets public liability minimums of $100,000 for liability and $25,000 for property damage for roofing contractors, against $300,000 and $50,000 for general and building contractors.⁠⁴ Customers’ contracts add more, such as additional-insured status, higher limits or umbrella coverage. A restaurant serving alcohol, a contractor with commercial vehicles and a software company with client data each face a different set of requirements.

How to build a budget for your business

1. Split payroll by class

   List employees by what they do, not by title. Field, shop, driver, sales and clerical payroll usually fall into different classes. Washington needs hours, not payroll.

2. Price comp from a published rate

   Multiply each class’s payroll (per $100) or hours by its rate. Use the workers’ comp calculator with your state’s schedule where one is published, then adjust for your experience modification, which can raise or lower the result.

3. List the other exposure bases

   Revenue, vehicles and property values.

4. Find the mandatory lines

   Check your state’s comp rule, your license board’s rules and each contract’s insurance clause.

5. Request quotes on the same terms

   Same limits, deductibles and payroll split, so differences reflect price and not coverage.

6. Leave room for the audit

   Estimated payroll is a deposit; the audit adjusts it after the term.

Pick your business type below for its comp classes, insurer-reported figures and licensing rules.

Sources

1. 1
   U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, June 2026 (released Sept. 9, 2026) Checked 13 Oct 2026 · Back to text ↑
2. 2
   Ohio Bureau of Workers' Compensation / Ohio Administrative Code, OAC 4123-17-06, Appendix A: base rates effective July 1, 2026 (private employers) Checked 13 Oct 2026 · Back to text ↑
3. 3
   Washington State Department of Labor & Industries, 2026 hourly rates by risk classification Checked 13 Oct 2026 · Back to text ↑
4. 4
   Florida Construction Industry Licensing Board, Rule 61G4-15.003, Public liability insurance Checked 13 Oct 2026 · Back to text ↑
5. 5
   International Risk Management Institute (IRMI), Exposure base (definition) Checked 13 Oct 2026 · Back to text ↑

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