In Louisiana, workers compensation is priced mainly on three things: your payroll, the kind of work your employees do, and your claims history. The insurer applies a rate to every hundred dollars of payroll in each job category, adjusts it for your own claims record, and that is most of your premium. Louisiana is a place where the base rates carriers build on have been falling for several years, so pricing has trended down, though your exact number depends on your business.
Who this is for: Louisiana owners trying to understand what drives a workers comp quote and roughly what to budget for their kind of work.
The short version
- Premium is payroll times a rate for each job category, adjusted for your claims history.
- The kind of work matters most: a roofer pays far more than an office per payroll dollar.
- Your past-claims score can raise or lower the price once you are large enough to have one.
- Louisiana base rates have fallen for several years, most recently a proposed cut for May 2026.
- You buy on a competitive market, so shopping and correct job categories keep the price fair.
What drives your Louisiana premium
The biggest lever is the job category your work falls into for pricing, sometimes called the class code. Each category carries its own rate that reflects how risky the work is, so the same payroll costs very differently for a rooftop crew than for a desk team. On top of that, once your business is large enough, insurers apply a score based on your past claims, the experience modification rate, that raises or lowers your price against businesses like yours. Payroll size, the split of your payroll across categories, and whether your job categories are coded correctly round it out.
| Factor | How it moves your price |
|---|---|
| Type of work (the job category rate) | The single biggest factor; hazardous trades cost far more per payroll dollar |
| Total payroll | Premium scales directly with covered payroll |
| Claims history score | A strong record lowers your price; past claims raise it |
| Correct job categories | Miscoding payroll into the wrong category can make you overpay for years |
| Carrier and market | Carriers set their own multiplier on the state base rates, so shopping matters |
Illustrative ranges
These are illustrative annual ranges for small Louisiana employers, not quotes. Real pricing depends on payroll, job categories, claims history, and the carrier.
| Business type | Estimated annual workers comp |
|---|---|
| Office or professional services | 400 to 1,700 dollars |
| Retail store | 900 to 3,800 dollars |
| Restaurant or cafe | 2,000 to 8,500 dollars |
| Plumbing or HVAC contractor | 3,000 to 12,000 dollars |
| Roofing contractor | Substantially higher; among the costliest trades to cover |
Why Louisiana pricing has been easing
Louisiana sets advisory base rates through an independent rating organization, and those base rates have declined for several years as the state's claim experience improved. The rating bureau filed a 5.3 percent cut to voluntary base rates proposed to take effect May 1, 2026, following an 8.7 percent cut the year before. Individual carriers still set their own multiplier on those base rates and compete on the final price, and the state-created mutual, LWCC, sets its own rates and can pay policyholder dividends, so the number you actually pay depends on where you place the policy.
A Baton Rouge example
Illustrative, not a quote. A Baton Rouge plumbing company with four field plumbers and one office admin gets priced mostly on the plumbing payroll, which carries a higher rate than the clerical payroll. Splitting the admin's wages into the correct low-hazard office category instead of lumping everything into the plumbing category saves real money. Because the company has a clean claims record, its past-claims score nudges the price down. We check the job categories and shop the market so the plumbing work is priced fairly. See our workers comp for plumbers page.
Real questions Louisiana owners ask
How is workers comp priced in Louisiana?
Mostly on payroll and the kind of work. The insurer applies a rate to every hundred dollars of payroll in each job category, then adjusts for your claims history. Payroll times rate, tuned by your record, is most of the premium.
What makes the biggest difference in my price?
The kind of work your employees do. Each job category carries its own rate for how risky it is, so a rooftop crew costs far more per payroll dollar than an office, even at the same payroll.
Is workers comp expensive in Louisiana?
It depends heavily on your trade, but Louisiana base rates have been falling for several years. A low-hazard office is inexpensive to cover, while hazardous trades like roofing are among the costliest.
What is the score based on my past claims?
It is a factor, sometimes called the experience modification rate, that compares your claims history to similar businesses and raises or lowers your price. A clean record lowers it; frequent or costly claims raise it.
Can I lower my Louisiana workers comp cost?
Often yes. Making sure your payroll is in the correct job categories, keeping a clean claims record, and shopping the competitive market are the main levers. Miscoded payroll can quietly overcharge you for years.
Are Louisiana rates going up or down?
Down in recent years. The rating bureau filed a 5.3 percent cut to base rates proposed for May 1, 2026, after an 8.7 percent cut the prior year, though carriers set their own final rates on top of those base levels.
Does it cost less to buy from the state fund?
Not automatically. The state-created mutual, LWCC, sets its own rates and can pay policyholder dividends, but it is one option among many. Shopping the competitive market is how you find the right price for your work.
Why Louisiana owners choose Morrow
- We shop the right market for you. In Louisiana you buy workers comp on the open, competitive market from any private insurer licensed in the state or from the state-created mutual fund, the Louisiana Workers' Compensation Corporation, which also serves as the guaranteed market that cannot turn you down, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Louisiana guides
Every Louisiana business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Louisiana (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- Louisiana plumber workers comp
This guide is general information, not legal advice. Louisiana rules and penalty amounts can change, so verify current requirements with the Louisiana Workforce Commission's Office of Workers' Compensation Administration or a licensed advisor before you rely on them. Last updated: July 2026.