Film Accounting Glossary
Workers' compensation
What is workers' compensation?
Also called workers comp, or workmans comp.
Workers' compensation is the insurance covering medical costs and lost wages when a crew member is injured at work, and its premium is an employer cost inside the fringe rate.
Rates are set per job classification and per state, so stunt performers, drivers, and construction crew carry far higher rates than office staff, and misclassifying a role understates cost. Premiums are audited against actual payroll after the fact, so the final cost can differ from the estimate.
Example
Rates are set per job classification and state, so a stunt performer or driver carries a far higher rate than an office coordinator. Classify a driver as office staff and the premium is understated all show, then trued up when the insurer audits actual payroll.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Inside the fringe rate, usually bundled with the payroll company's services, and audited against real payroll after the fact.
Common mistake
Applying an office rate to stunt performers, drivers, or construction crew. Rates are set per classification, and misclassifying understates cost all show.
Related questions
- How is workers' compensation priced on a production?
- Per job classification and per state, so higher-risk roles such as stunts, drivers, and construction carry substantially higher rates than office staff.
- Why does the workers' compensation cost change after wrap?
- Because premiums are audited against actual payroll by classification, so the final figure can differ from the estimate carried during the shoot.