AWC Blog

2016 Workers’ Compensation Costs

workers' comp costs

The workers’ compensation insurance market will remain relatively flat for 2016, according to industry leaders. Prices will fluctuate very little for many companies. Unless you’ve previously filed claims, your workers’ compensation premiums should remain stable, or even decrease, over the next year.

Workers’ Comp Costs Remain Stable in 2016

Most insurers are only increasing premiums for those companies with a history of losses. Many companies that managed to stay accident-free are seeing no increase in their premiums, and in some cases, single-digit percentage decreases from insurers who want to retain their business.

Large, national companies with stables histories of loss may also qualify for two-year agreements from some insurers – further stabilizing workers’ comp premium costs. This isn’t an option for everyone, but for the bigger companies with the right amount of risk, it may be something to consider and request from your insurance agent.

Thanks to new tools and available data, insurers are able to look more closely at a company’s history of losses and accidents, taking into account different factors, in order to determine a premium amount so that the most competitive price can be found for any company, small or large. Some insurers are also moving away from a one-size-fits-all view on deductibles. Instead of the typical $250,000 or $500,000 deductible, your insurer may find something more in line with your loss history and budget.

The bottom line is that a company with consistently more claims and losses will pay higher for their workers’ comp coverage while those with no claims or one-off, random claims in an otherwise clean history, may see no change in their workers’ comp costs and possibly pay less.

What You Can Do to Keep Costs Low Next Year

If you want to keep your workers’ comp costs low for another year or lower your premiums after a few too many years with increases and workers’ comp claims, there are plenty of things you can do in the year ahead.

  • Create a safety plan and stick with it.
  • Train your employees on how to stay safe while on the job.
  • Reward your employees each month or quarter with no accidents.
  • Create a safety committee to help monitor safety issues that need to be addressed.
  • Keep your eyes open at all times for potential hazards.
  • Maintain your equipment to prevent accidents.
  • Encourage employee health and wellness programs to help them stay physically fit.
  • Monitor your business – in employee and customer areas – daily for potential safety hazards.
  • Talk to your insurance agent about safety precautions you can take.
  • Require all applicants to take part in medical checks before hiring them to make sure they can handle specific physical job requirements.
  • Offer “light duty” to help injured employees get back to work quicker.


Some accidents will happen no matter how much effort you put into prevention. Many, though, can be avoided with extra effort and training. Fewer accidents means lower workers’ comp premiums for you the following year.

When you’re ready to find better workers’ comp coverage at a lower price or if you want to know what changes to make to lower future costs, contact us today.

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