Small Employers See Higher Insurance Costs Size matters when it comes to the cost of insurance, according to a study by New York City-based insurance broker Marsh, which indicates that smaller employers pay a larger portion of their revenues for insurance management costs than larger ones.
The study, entitled "Casualty Cost of Risk 2003," asked 1,050 respondents across 23 industry classifications about the cost of insurance compared to revenue. The report examined the combined costs for a policyholder covering workers compensation, general liability and automobile liability, which account for about 90 percent of "total financial outlays" in insurance coverage for U.S. corporations.
The study found that, on average, U.S. employers spend $2.45 for insurance and other risk management solutions for every $1,000 in revenues to manage their casualty risks.
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