Alabama workers' compensation rates continue to Flatten in 2024.

Alabama currently ranks number 20 for the highest workers’ compensation rates in the nation, according to a recent study completed by the Department of Consumer Business and Services. The study indicates a breakdown from a 2022 study where Alabama ranked as the 30th most expensive rates overall. Alabama rates are averaging about 8% higher than the national median.

Alabama is an NCCI state like most other states. This means that NCCI oversees employers' experience modifiers and collects all data for the state including claims, class codes, premiums, and payroll. NCCI analyzes this data and makes annual recommendations to carriers and to the Alabama Department of Insurance. Every Insurance company is required to file their rates with the state for approval.

Workers' compensation rates may still vary for the same class codes in Alabama because insurance companies can apply policy credits and debits up to 25% to adjust their filed rates. More discounts may also be added to a policy depending on the size of payroll and the overall claims experience.

Don't get stuck paying too much for your workers' comp coverage. Our agents know how to get you the lowest rates for your business. Call us today to find out how knowledegeable agents, expert advice and more choices lead to the best workers' comp quote.

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Workers Comp Rates are an Art & Science

What influences my workers comp insurance cost?

Your State & Class Codes

Insurance companies file their "base manual rates" for approval with each state for all class codes. Rate recommendations are generally made to the state and carriers annually by the National Council on Compensation Insurance.

Your Claims or Losses

Employee claims are reported to NCCI and statistically compared with all other similar type businesses using the same class code in each state. An Experience Modification Rate may apply to your business after a few years of coverage.

Prior Experience & Coverage

Insurance company underwriters are permitted to make premium rate adjustments based on unique factors about your business, safety practices, and management experience in most states.

Policy Credits and Debits

Insurance companies may apply policy credits and debits to the base manual rates. Additional discounts can be applied to premium as the total payroll & premium increases.

Smart Agents with expertise in workers' compensation insurance utilize this information to negotiate your insurance rates with underwriters. A good narrative about your business helps insurance companies justify a better price.

Alabama Rates for Select Work Comp Class Codes

Rates for State Class Codes. Select Codes Listed:

Alabama workers' compensation rates listed below represent the current insurance rates effective as of 3/1/23. New Alabama rates are proposed each year by NCCI and then approved by the Department of Insurance Alabama. Insurance companies are able to offer additional premium discounts and scheduled credits for workers comp policies. We also offer Pay As You Go Workers' Comp coverage in Alabama.

Class Code & Description Low Rate High Rate
0035 Farms Florist and Driver $1.62 $4.01
0042 Landscaping Service $3.58 $9.52
0106 Tree Trimming-Pruning-Removal $7.77 $19.22
0917 Residential Cleaning Service-Housekeepers $3.06 $7.64
2121 Breweries-Craft Beers $0.80 $1.98
2143 Winery-Wine Makers $1.70 $4.20
2585 Carpet Cleaning $2.35 $5.81
2589 Dry cleaning and Laundry Service $1.94 $4.80
3632 Machine Shop $1.74 $4.30
3724 Garage Door Installation $2.08 $5.04
3821 Salvage Yard-Automobile Recycling $5.40 $13.35
5022 Masonry Construction $5.17 $12.79
5102 Door and Window Installers $3.58 $8.85
5183 Plumbing Contractors $2.04 $5.04
5190 Electrical Work-Electrician $2.18 $5.39
5221 Concrete Work-Flat Work Cement $3.05 $7.54
5223 Pool Installation-Pool Maintenance $4.60 $11.38
5348 Ceramic, Tile and Stone Work $2.71 $6.70
5437 Trim-Finish Carpenters-Cabinets-Countertops $3.89 $9.62
5445 Drywall Contractors $5.22 $12.91
5474 Painting Contractors $3.46 $8.56
5535 Metal Building Construction $5.44 $13.45
5537 HVAC-Heating Cooling Service/Repair $3.27 $8.09
5537* Solar Energy Contractors $3.27 $8.09
5551 Roofing Contractor $12.01 $29.70
5606 Asphalt and Paving Work $0.73 $1.81
5645 Residential Construction-Home Builders-Remodelers-Siding $9.19 $22.73
6217 Excavation and Grading Work $3.34 $8.26
6400 Fence Installation & Repair $5.47 $13.53
7219 Trucking Short Haul and Long Haul $4.90 $12.12
7225 Towing Company $3.75 $9.27
7230 Package and Parcel Delivery $4.77 $11.80
7370 Non-Emergency Medical Transportation-Tax-Limousine-Airport Shuttle $3.11 $7.69
7605 Alarm Installation and Repair $1.52 $3.76
7720 Security Guards-Pathol Officers $2.38 $5.89
8006 Gas Stations Convenience Stores $1.61 $3.98
8017 Retail Stores-merchandise-Cannabis Dispensary $1.17 $2.89
8292 Warehousing and Storage Facility $2.29 $5.66
8380 Auto Service and Repair-Mechanic $2.14 $5.29
8393 Auto Body Repair $1.04 $2.57
8742 Sales Professional $0.25 $0.62
8810 Clerical-Office Employees $0.11 $0.27
8824 Retirement Living Centers-Congregate Communitities $1.76 $4.35
8829 Nursing Home and Assisted Living Faclitity $1.95 $4.82
8831 Animal Shelters and Kennels-Veterinarian $1.09 $2.70
8832 Medical Office-Doctor-Dentist-Chiropractor-Optometrist $0.25 $0.62
8835 Home Healthcare Workers $1.95 $4.82
8842 Group Homes-Temporary Shelters-Disability Facility $2.10 $5.19
8864 Social Service Organizations-Counseling-Family Services $1.40 $3.46
8868 Religious Organization- Church- Temple $0.29 $0.78
8869 Child Care Center-Daycare Providers $0.85 $2.10
9012 Property Management-Leasing Agent $0.97 $2.40
9014 Janitorial Service Contractors-Pest Control-Exterminating-Chimney $1.96 $4.85
9015 Building Mainentenance-Campgrounds-Camps-RV Parks $2.56 $6.33
9052 Hotels and Motels $1.60 $3.96
9060 Golf Courses and Country Clubs $1.13 $2.79
9063 Fitness Center-Health clubs-YMCA Programs $0.73 $1.81
9082 Restaurants-Catering $1.11 $2.75
9083 Mobile Food Trucks-Food Carts $1.13 $2.79
9083* Fast Food Restaruants-Concessions-Doughnut Shop $1.13 $2.79
9084 Bars,Taverns,Nightclubs $1.04 $2.57
9102 Lawn Service and Maintenance $1.89 $4.67
9180 Shooing Range-Amusement Park $3.53 $8.73
9402 Septic Tank-Portable Toilets-Street Cleaning $4.48 $11.08
9403 Refuse Collection-Garbage-Trash Service $4.77 $11.80
9516 Electrical Equipment Repair and Service $3.50 $8.66

Alabama workers' compensation rates vary by class code and insurance company underwriting standards. Employers' who have an Experience Modification Factor assigned to their business may have additional credits or debits applied to their insurance rates based on prior premium and workers compensation losses.

State Resources for Alabama

Alabama Department Of Industrial Relations

649 Monroe Street
Montgomery, Alabama 36131

Alabama is under the Jurisdiction of the National Council for Compensation Insurance. They currently contract with Travelers as the State Fund insurance carrier.

Our agency helps employers find guaranteed state fund insurance in AL, if we can't find coverage with a private insurance provider.

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Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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