If you are a business owner who is seeking information about the costs of workers' compensation insurance in your state, it may be beneficial to learn more about the way premiums are devised in your area before contacting multiple insurance carriers. Unlike other sectors of the insurance industry, the rates that workers' compensation insurance carriers can charge are often dictated by guidelines set forth in state law. Although the specific formulas used to determine premium rates vary from state to state, most take into consideration factors like the relative risk of injury in the sector in which a company does most of its business, the size of the company, and the total amount of the company's annual payroll. In some states, issues such as the company's past history of safety violations and reported workers' compensation claims may also be considered. While there may not be much you can do to decrease the workers' compensation quote you receive from a prospective carrier, you may be able to change your company's risk profile by implementing new and improved safety procedures.