When it comes to setting the premium fees for workers' compensation insurance policies, insurance carriers rely on a number of different factors. However, unlike many other types of insurance coverage, state governments often play a central role in determining what constitutes reasonable fees for workers' compensation insurance policies. In each state, a specific formula is established to determine coverage rate ranges. The primary factor that is considered in this process is the overall risk associated with the occupational sector in which a particular company does most of its business. For example, because a construction firm is likely to generate many more worker injuries than an accounting firm, the workman's comp rate that is quoted to the construction firm is likely to be significantly higher. In addition to occupational risk, other factors that may help to determine workers' compensation premiums include the number of employees and total annual payroll of the business.