Workers’ Comp Insurance Cost for Insulation Installation Contractors
- Nate Jones, CPCU, ARM, CLCS, AU
- 7 days ago
- 2 min read
Workers’ compensation insurance is mandatory in most states for businesses with employees and is especially critical for insulation installation contractors. With on-site hazards like chemical exposure, dust inhalation, and equipment-related injuries, having workers’ comp coverage protects both your employees and your business. In this guide, we’ll break down average costs, factors that influence premiums, and how to get a quote from Wexford Insurance.
Why Workers’ Compensation Insurance Matters
Workers’ comp insurance covers:
Medical expenses – For employees injured on the job.
Lost wages – Partial income replacement while employees recover.
Legal costs – Defense in case of lawsuits related to workplace injuries.
Failing to carry workers’ comp can result in severe penalties and put your business at financial risk.
Factors That Affect Workers’ Compensation Costs
The cost of workers’ compensation insurance depends on several key factors:
Number of employees – More workers mean higher premiums.
Payroll size – Premiums are calculated as a percentage of total payroll.
Type of work performed – Spray foam and fiberglass work have different risk levels.
Claims history – Businesses with prior claims may face higher rates.
Location – State regulations and regional risk factors influence costs.
Safety measures – Documented safety programs can reduce premiums.
Average Workers’ Comp Costs for Insulation Contractors
For insulation installation contractors, typical workers’ comp costs are:
Small crews (1–3 employees): $2,000–$4,000 per year
Medium crews (4–10 employees): $4,000–$10,000 per year
Larger operations (10+ employees): $10,000+ per year
Exact costs depend on your payroll, work type, and coverage limits. For a precise estimate, request a quote from Wexford Insurance.
How to Reduce Workers’ Comp Premiums
Implement safety programs – Training and protective equipment reduce risk and can lower rates.
Maintain a clean claims history – Avoiding preventable accidents helps control premiums.
Bundle policies – Combining workers’ comp with general liability or commercial auto can result in discounts.
Work with an experienced broker – Wexford Insurance helps insulation contractors find the right coverage at competitive rates.
