Alabama Electrical Workers Comp Rates (2026)
The published Alabama loss cost for electrical workers comp, class 5190 (Electrical Wiring - Within Buildings & Drivers), is $1.246 per $100 of payroll (effective March 1, 2026). Carriers multiply it by their own filed multiplier, so a typical premium is about $1.87.
A loss cost covers expected claims only. Each carrier files its own multiplier for expenses; in the states that publish the full list, the median is about 1.5, which is what the typical premium here uses. Your quote can be lower or higher. Source.
Alabama class code for electrical
- 5190: Electrical Wiring - Within Buildings
- 7538 (Electric Light or Power Line Construction & Drivers)
Electrical work carries shock, arc flash and fall hazards. Outside power line construction is a separate class, 7538.
What comp costs per electrician in Alabama
The Bureau of Labor Statistics counts 10,900 electricians on payrolls in Alabama (May 2025), the 25th largest workforce among the 50 states and DC. The median wage is $26.78 an hour, 12% below the US median of $30.38.
Electricians make up about the same share of Alabama jobs as they do nationally (location quotient 1.06).
At a typical Alabama premium of about $1.87 per $100 of payroll (the published loss cost of $1.25 for class 5190 times a 1.5 carrier multiplier), comp on one worker at that wage costs about $0.50 for every hour worked, or $1,042 a year full time. A 2-person crew comes to roughly $2,083 a year in premium before any experience mod.
Because premium is charged on payroll, who you hire moves the bill. Alabama pay runs from $18.09 an hour at the 10th percentile to $37.61 at the 90th, so the same rate costs $0.34 an hour on a new hire and $0.70 on a senior hand.
Workers comp requirements in Alabama
- Coverage required: 5+ employees; 1 for new single-family home construction
- Owners and sole proprietors: Owners may be excluded; corporate officers count toward the 5-employee threshold
- State fund: Private market (no state fund)
- Waiting period: 3 days; retroactive if disability exceeds 21 days
- Penalty for going without: Up to $1,000 per employee per day, stop-work orders, and misdemeanor exposure
Alabama's small-employer exemption specifically does not cover new single-family homebuilders, who need coverage at one worker.
Alabama vs neighboring states
- Georgia: about $1.95 per $100 of payroll
Alabama has the lowest electrical comp rate in its region; every neighboring state charges more per $100 of payroll.
If your crews work across the line, list those states under item 3.A or 3.C of your policy before the job starts. Rates follow the state where the work is done, not where your office is.
What moves a electrical comp bill
- Electrical is one of the cheaper construction classes, so overstated payroll often costs more than the rate itself. Estimate payroll honestly at renewal and true it up at audit.
- Ladder falls and shocks are the typical claims. Lockout and tagout procedures that are actually followed are what keep the experience mod under 1.0.
- Low-voltage, alarm, and solar work can carry different class codes in some states. Ask your agent before you add those lines to the business.
- Office staff and estimators who stay out of the field can usually be rated as clerical. Keep their hours off the field timesheets.