New comp cost study

Risk & Insurance, May, 2004

For every $1,000 of revenues, U.S. businesses spend an average of $2.32 on insurance and other measures to manage their workers' compensation, auto and general liability risks, according to a new study by Marsh Inc.

On average, workers' comp protection accounts for 63 cents of every dollar U.S. industry spends to manage its primary casualty exposures.

The conclusions are based on data from 1,433 businesses and government entities compiled through November 2003. Workers' comp costs averaged $1.46 per $1,000 of revenue, while general liability costs were $0.55 and auto liability costs were $0.31.