# Workers comp

State-required cover for employee injuries, priced per $100 of payroll.

Nearly every state makes it mandatory from the first employee, and a lapse is not a fine but personal exposure plus, in some states, an order to stop working. The premium is a class code rate times payroll times a multiplier set by the claims the business has had. That multiplier can follow the business across a sale, so a seller's history can price your first year whether or not you keep their carrier. Get the [loss runs](https://searchspheresource.com/glossary/loss-run) in diligence and have your own policy bound for day one, beside the liability cover.

In numbers: A $600,000 payroll in a class rated $4.50 per $100 runs about $27,000 a year at a neutral modifier, and a 1.3 modifier inherited from the seller's claims lifts it to roughly $35,000.

Source: https://searchspheresource.com/glossary/workers-comp
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt