What is a minimum premium for workers' comp?

Insurance carriers charge a minimum premium in order to cover their basic expenses in issuing and servicing policies. 

By setting a minimum premium, carriers determine the smallest acceptable premium that they are willing to charge in order to accept a risk. Each carrier must file their minimum premium requirements as part of their rating plan with the state, in order to ensure fairness.

Regardless of what billing option you choose, your total premium will be at least this amount. Please note that if your policy is canceled prior to the full policy term due to not having employees or if you business is sold/closed, the minimum premium is generally pro-rated for the amount of time the policy was active.