Unlike any other kind of small-scale business insurance, Workers’ compensation insurance is something that is regulated by the country. As a matter of fact, it is absolutely important for all the businesses in the 49 states to carry Workers’ Compensation Insurance with an exception to Texas. This has two implications to be noted: one, that the Worker’s compensation insurance does act as a unifying thread among all the businesses with employees and two, the cost of the coverage can vary significantly from one state to another. It is kept separate in order to avoid conflict as there is a good possibility that one problem in the hands of fifty different states would be handled in fifty different ways.

The average cost of Workers’ compensation insurance per $100 in payroll ranges from $0.75 in Texas to $2.74 in Alaska as per the reports. However, these numbers are considered to be extremely simple to bring forth a conclusion as these numbers encompass the information from all the varieties of jobs and do not reflect the variations within states that are accountable for various risk levels.

The National Council on Compensation Insurance (NCCI) has brought forth a system of various classification codes that are used to categorize the kinds of work that people do.