In the field of workers' compensation, some businesses are hit harder than others for their workers' compensation cost. The number of people that a company employs and the type of work and industry that they are involved with also factor in the determination of the cost of workers' compensation insurance.
Some of the industries that have high insurance cost are:
Factories Grocery stores Construction companies
Accidents occur more frequently in these industries than others, thus the higher cost for insurance. Insurance companies monitor each business and their safety records and rates can go down or stay even if the ratio of claims is very low.
Factories
The reason that so many of our companies outsource to other Countries for factory production is the cost of doing business in the U.S. is so much higher. The cost of living in the U.S. is much more than most of the third world countries. We have much higher labor cost, payroll taxes and the insurance required to run most factories is much greater than the profit produced.
How do you think that Steve Jobs and Apple made so much money off the iPhoine? It is because they went overseas to produce them in mass quantity. It takes about 12 bucks in labor to make an iPhone and less than 100 dollars to manufacture the entire phone and ship them all over the place. And then they charge $ 399.00 to own one. We just cannot make them less expensive here because the companies in the U.S. are in it for the most amount of profit that they can acquire and forget about the American people and our industries.
Factories workers suffer from a lot of stress on their bodies due to repetitive motions, standing in the same area all day and heavy lifting. So many workers' compensation claims have led to all the outsourcing of labor.
Eventually this will change when all the other countries catch up to our ways of life and labor rises up to the point that we will start making and producing products back in the good OLE USA.
Construction Companies
This is an industry that has always had high workers' compensation cost just due to the difficult nature of building things and all the things that can and do go wrong with people and equipment. The larger the construction firm, the higher the cost, that is why so many contractors sub out their work to other contractors to help deflate the cost of their insurance.
Grocery Stores
Grocery stores operate on a very little profit margin, sometimes as little as one percent after expenses. Unions, the price of fuel and the rising cost of insurance lead grocery stores having higher turnover for employees. The employees are getting squeezed so hard to get more and more done with loess hours and fewer people that accidents are more frequent thus the higher cost for insurance.
Unfortunately the only way for this to change is that the insurance companies take a lot less profit for what they provide - that way companies could afford to do more business here in the USA.
Casey Trillbar is the editor of 101waystomakemoney.com, which is a website aimed at supplying information and resources about how to make money online and off. For more information visit: http://www.101waystomakemoney.com
Orignal From: Industries That Are Hit Hard For Workers' Compensation Costs
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