Workers’ Comp Costs for Trucking and Transportation Companies

When it comes to Workers’ Comp costs, trucking and transportation companies can benefit greatly by understanding some of the key criteria that premium is based on.

Due to the nature of the work, work-related injuries, illnesses, and fatalities are prevalent in the trucking and transportation industry. Therefore, most states require businesses in this industry to carry Workers’ Comp to protect their employees from potentially high costs associated with work-related injuries, illness, or fatalities. Common injuries in the transportation industry result from:

  • driving accidents
  • when loading or unloading goods
  • when making repairs while on the road
  • slips and falls when exiting or entering trucks

While the legal requirements for Workers’ Comp vary by state, almost all states require employers to carry this coverage.

How Much Does Workers’ Comp Cost Trucking and Transportation Companies?

Workers’ Comp rates largely hinge on the number of drivers on a company’s payroll and is usually calculated as 8% to 15% of the drivers’ salary. Rates also vary greatly based on:

  • Prior claims history
  • Location and routes
  • The types of materials hauled
  • Whether the driver touches the freight
  • Years of experience

Risk management programs and products geared toward safety, protection and ongoing training can help with Workers’ Compensation costs while keeping drivers safe and working.

According to SOURCE, on average, Workers’ Comp coverage per driver costs between a wide range due to the multiple variables involved. Generally, Workers’ Comp premium calculations for the trucking industry are more complicated than most industries because of the risks involved with driving, the weather, on the road distractions, vehicle maintenance, loading, and unloading. For drivers that traverse multiple states, costs may increase based on different Workers’ Comp state laws.

Workers’ Comp Classification Codes for Transportation Companies

Classification codes are codes reflect job exposures common to them and are used to calculate the premium of a Workers’ Comp policy. Common classification codes include:

  • Local and Long-haul Truck Drivers

    Initially based on the radius covered, this code now applies to almost all types of truckers.

  • Local / Short-haul Truck Drivers

    Applicable to truck drivers that haul goods less than 200 miles.

  • Long-haul Trucking

    Applicable to truck drivers who haul goods more than 200 miles.

  • Parcel or Package Delivery, Last-Mile Drivers

    Covers operations that directly deliver goods from retailers to consumers

  • Couriers and Mail Delivery

    Applies to couriers, messengers, and others who locally deliver envelopes, parcels, or packages

There are multiple factors for trucking and transportation companies to keep in mind when it comes to their Workers’ Compensation costs, and safety can have a positive impact on premium amounts. PMC is the single source for Workers’ Compensation solutions with experts available to help independent insurance agents stay protected and competitive. For more information on our specialized Workers’ Comp programs for trucking and Transportation, contact us today at (781) 449-7744 or

By PMC Insurance Group

Since 1996, PMC Insurance Group has worked to help independent agents grow their client base by offering workers' compensation solutions for a wide array of businesses. As one of the most distinguished workers' compensation wholesalers in the country, we have the tools and resources to help you create coverage programs for small businesses and large accounts.