Oklahoma Workers' Compensation Insurance

Your Guide to Workers' Comp Insurance in Oklahoma

Find the right workers' compensation insurance policy for you.

Oklahoma Workers Compensation Insurance

In recent years, Oklahoma has paid out $1.837 billion in workers' comp claims. Work-related injuries happen every day, from trips and falls to life-altering injuries, but having the right workers' comp coverage can help protect your business. For help navigating workers comp insurance coverage, find a local independent agent.

Workers' Compensation Coverages/Non-Coverages in Oklahoma

Employees need help paying for medical bills when they get injured on the job. Workers’ compensation insurance is designed to protect employees from the costs of workplace injuries, and protect employers from lawsuits and other unpredictable costs.

Here's a closer look at what workers' compensation covers and does not cover in the state of Oklahoma.

Workers' comp covers the following:

  • Traumatic injuries
  • Repetitive-type injuries
  • Certain mental injuries
  • Occupational diseases

Real-life example of coverage:

A barista at an Oklahoma coffeehouse gets burned by an overheated drink. The employee gets taken to the hospital to be treated for minor injuries. A workers' comp policy would help pay for any related medical treatments and other costs.

Workers' comp does not cover:

  • Employee illnesses or injuries sustained outside of work
  • Accidents that occur while an employee is intoxicated
  • Intentional employee injuries to themselves at the workplace
Workers' Compensation Coverage Covered Not Covered
Traumatic injuries
Covered by Worker's Compensation
Repetitive-type injuries
Covered by Worker's Compensation
Certain mental injuries
Covered by Worker's Compensation
Occupational diseases
Covered by Worker's Compensation
Employee illnesses or injuries sustained outside of work
Not covered by Worker's Compensation
Accidents that occur while an employee is intoxicated
Not covered by Worker's Compensation
Intentional employee injuries to themselves at the workplace
Not covered by Worker's Compensation

An independent insurance agent can further explain what workers' compensation insurance both covers and excludes in Oklahoma.

Why Do You Need Workers Compensation Insurance in Oklahoma?

Workers' comp insurance is a necessity for most businesses for several reasons. For starters, it's actually required by law in most states, if your business has employees. Workers' comp also provides critical protection for your business against financial losses.

For most states, workers' comp is required immediately upon hiring a new employee. You'll want to be equipped with coverage before any of your workers get injured or ill on the job so that your business won't be held financially liable. Coverage doesn't kick in for workplace incidents until after you purchase a policy.

What Consequences Could You Face if You Don’t Have Workers’ Compensation in Oklahoma?

If your business doesn't carry workers' comp to protect your team, you could end up facing legal consequences like fines or jail time. Though some businesses think of workers' comp as optional or unnecessary due to the nature of their operations, coverage can provide important financial protection in case of an incident.

Workers' comp is mandatory in most states, including Oklahoma, if your business has one or more employees. Businesses in Oklahoma without the right workers' comp insurance can be subject to a fine of $1,000 per day without coverage. The state may also perform a court-issued shutdown of the business until proper coverage is obtained.

Oklahoma Workers’ Compensation Laws and Regulations

Oklahoma law requires every employer to carry a worker’s compensation policy. Every business in the state that has at least one employee, full-time or part-time, must carry a workers’ compensation policy. There are only a few exceptions to this requirement.

In Oklahoma, like most other states, the workers’ comp program is a no-fault system, meaning employees are guaranteed benefits under the plan regardless of who's at fault for accident or injury. A workers’ compensation program exempts employers from costly employee lawsuits in exchange for the guaranteed benefits. 

How Much Does Workers’ Comp Insurance Cost in Oklahoma?

Workers’ compensation insurance always costs more for industries and occupations that are presumed to have a higher risk of occupational injuries or illnesses. Cost is determined by how many employees you have, the types of jobs they perform, and your history of accidents and workers’ compensation claims. 

In Oklahoma, the National Council for Compensation Insurance (NCCI) assigns classification codes for each occupation. Each class code is given a recommended base rate for workers’ comp. For the premium, an employer’s annual payroll at the start of the policy period is divided by 100 and then multiplied by the base rate. 

Consider the following example:

  • Oklahoma Classification Code: 5183 Masonry Plumbing
  • Employer Payroll: Example: $100,000
  • Premium Calculation: $3.90 per $100 or 3.90% of payroll.
  • Estimated Annual Premium: $3,900

The majority of businesses have more than one class of employee. In this example, a plumbing company would have accounting, sales, and administrative staff in addition to plumbers. The different employees all have different class codes. To calculate your workers’ comp premium, the class codes and related premiums are added together.

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Oklahoma Workers' Comp Base Rate Examples

Rates for workers' comp insurance in Oklahoma may vary among insurance companies based on underwriting standards and credits offered by individual insurers.  

Here are some sample base rates (rate per $100 of employer payroll):

  • 0042 Landscaping  $5.69
  • 3632 Machine Shop  $3.10
  • 3821 Salvage Yard  $4.88
  • 5022 Masonry $6.68
  • 5183 Plumbing  $3.90
  • 5190 Electrical  $3.86
  • 5221 Concrete Construction  $4.21

Workers' Comp Cost Per Employee in Oklahoma

The cost of workers' comp coverage per employee increases with higher company payrolls, as these businesses cost more to insure. Check out a breakdown of how workers' comp costs vary by payroll range in each specific industry below.

Annual Workers' Comp Cost Per Employee

Industry Lower Cost Medium Cost Upper Cost
Construction $1,756 $3,365 $12,874
Finance and Insurance $578 $1,044 $3,821
Hotels / Motels $424 $953 $4,024
Manufacturing and Food Production $751 $1,426 $5,423
Professional and Technical Services $543 $1,074 $4,202
Real Estate $98 $194 $761
Restaurants and Taverns $172 $384 $1,615
Retail Trade $331 $635 $2,431
Transportation and Warehousing $1,293 $2,547 $9,929

Businesses that have a greater track-record of safety and fewer accidents pay less for their coverage. Insurance companies have complex formulas to reset your rates after an accident, likely leading to a noticeable spike in your premiums.

Best Workers' Comp Companies in Oklahoma

Workers' comp is available from many different insurance companies in Oklahoma. Here are just a few of our top picks for quality workers' comp insurance carriers.

Top Workers' Compensation Insurance Companies Star Rating
Central Insurance Companies
5 star rating
EMC Insurance Companies
5 star rating
Liberty Mutual
4.5/5 star rating
Builders & Tradesmen's Insurance
4.5/5 star rating
Travelers 
5 star rating

An independent insurance agent can help you look into these workers' comp insurance companies and get matched to the carrier who best meets your needs at the most affordable rate.

Top 6 Most Common Workers' Comp Claims/Injuries

Top 6 Most Common Workers Comp Claims
  1. Lacerations: In other words, deep cuts. These can happen in any industry, but are especially common in the restaurant and manufacturing fields. 
  2. Sprains/strains: Again, these injuries can happen in any industry, but are especially common in job settings where lots of twisting and turning is required.
  3. Contusions: In other words, bruises and other marks on the skin caused by impact. Contusions often happen from dropped objects, improper lifting, or colliding with an object.
  4. Burns: Burns can happen in any industry that has a heat source, including restaurants, construction businesses, bakeries, and more.
  5. Eye injuries: Eye injuries are most frequent in industries that require chemicals, including manufacturing, painting, and construction.
  6. Fractures: Fractures can happen to employees anywhere, but are especially common in industries that require a lot of movement and the use of heavy machinery.

Why Are Independent Insurance Agents Awesome?

It’s simple. Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print, so you know exactly what you’re getting.

There’s no business too small for our independent insurance agents. They have access to multiple insurance companies, ultimately finding you the best workers' comp coverage and competitive pricing while working for you.

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TrustedChoice.com Article | Reviewed by Paul Martin

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https://www.ok.gov/wcc/documents/Guide%20for%20Employers%2011_19_2015%20FINAL.pdf

https://www.employers.com/blog/2019/7-common-workers-compensation-claim-injuries/