How Georgia Calculates Workers Compensation Insurance Rates

If you’re a business owner in the state of Georgia, then workers compensation insurance is a topic you’re likely already familiar with. That’s because regardless of your industry, all Georgia businesses must carry workers comp insurance.

That is, of course, if they have three or more regular employees. While there are a number of more specific exemptions and rules here, the big question you may be wondering about is how much do you have to pay? And how are those figures calculated or determined?

In Georgia, you’ll be paying a rate that begins based upon your industry and an assigned risk factor as determined and administered by the National Council on Compensation Insurance, or NCCI. Each industry has a classification code, and within that code, there’s a low rate and a high rate which are specific for that field.

The difference can be massive between these two figures and are generally about 4x apart from one another. That means a low rate for an industry might be $5.00, and the high rate would then correspondingly be approximately $20. That’s a very large and substantial difference, and where you fall into the spectrum is based on issues such as who is providing the policy for you, whether you’re a new or established business and what the prior years track records have been, and so forth.

There are then other factors that come into play as well. Employers are able to apply for an experience modification rating, or EMR, if they qualify for them. There are several different triggers for this, such as a $10,000 policy premium generated during the past year, or an average $5,000 policy premium generated for more than two years.

You can opt for a small deductible program or pursue workers compensation exceptions in certain instances. There are also minimum and maximum payroll figures for individuals in different roles, such as partners, corporate officers or LLC members.

There’s a lot to sort through, so feel free to give us a call at 407.272.1976 if you have any questions. We’re happy to help and you can count on our experience and expertise to guide you through the process and ensure you get the best possible deal on your Georgia workers compensation insurance plan.