3 Factors Driving Veterinary Workers' Compensation Costs
July 1, 2025

July 1, 2025

Workers’ compensation insurance is a necessary cost. Many practice leaders assume this cost is fixed, but several factors can influence rates that could be quietly eating into the clinic’s bottom line. 

Three behind-the-scenes factors can significantly increase your workers’ comp insurance costs, resulting in over-payments of up to $20,000 per year. Let’s break down how claims, overtime, and 1099 contractors impact veterinary workers’ compensation and how partnering with VSS can help you avoid these pitfalls.

1. Injury claims
Veterinary medicine is physically demanding. Team members lift heavy patients, crawl on the floor, and handle anxious or fearful pets who are armed with teeth and claws. Working long hours in these conditions increases the likelihood of injuries. However, one workers’ compensation claim can increase insurance costs.

Your veterinary workers’ compensation premium is based on payroll and claims history. Insurers use something called an experience modification rate (EMR) to measure the riskiness of your business compared to others in the same industry.
Every practice starts with an EMR of 1.0, which represents the industry average. If you’ve had fewer injuries or claims than expected, your EMR falls below 1.0, and your premiums go down. If you’ve had more claims than average, your EMR rises above 1.0, and your premiums go up.

For example, if your EMR is 1.10, that means you’re paying 10% more for workers’ comp insurance than a similar clinic with fewer claims. That doesn’t seem like much, but it can add up. Depending on your state, a base premium may run $5,000 to $10,000 for every $100,000 of payroll. If your practice has $1 million in payroll, a 10% increase due to injury claims can add $5,000 to $10,000 every year.

Injuries often occur among team members who are overtired or overextended. Relief staffing from VSS can ensure your core team gets the breaks they need to stay safe and can help to limit workers’ comp premiums.

2. Overtime
Overtime is a short-term solution that may have long-term costs. Veterinary workers' compensation premiums are partially based on total payroll, including overtime. Every extra hour of time-and-a-half increases insurable payroll and, therefore, premiums.

Additionally, overtime contributes to fatigue, which leads to mistakes and injuries. Tired employees are more likely to slip, lift incorrectly, or miss signs that a pet is about to bite. If your staff is overextended, it may be time to consider a relief coverage strategy. 

3. 1099 contractors
Relief team members can provide regular team members the help they need to reduce burnout and limit workers’ comp claims, but hiring them as 1099 contractors can create other issues. Misclassifying these workers can increase your veterinary workers' compensation costs.

A 1099 contractor is responsible for their own taxes and insurance, including workers’ compensation. But if that person functions like an employee—they follow your schedule, use your equipment, and work under your supervision—then they likely meet the legal definition of an employee. 

This gets confusing, and if something goes wrong, your practice could be held liable. When a relief worker without private workers’ comp insurance gets injured on the job, you could face:

  •     A claim against your policy or a lawsuit for damages

  •      A payroll review that triggers retroactive premium charges

  •      Fines or penalties from your state labor board or tax authorities


Relief staffing the right way
Workers’ compensation protects your business, but you could be paying significantly more than necessary if you make mistakes classifying employees, have team members regularly working overtime, or fail to address safety issues that lead to injuries and claims. 

Relief staffing—done the right way—can be a game-changer for busy veterinary practices. When you work with a staffing service like VSS, team members are employees of the service, not your hospital. That means you’re off the hook for veterinary workers’ comp coverage, legal risk, and misclassification. 

Contact us to find out how our relief professionals and additional business support services, including medical-grade laundry and inventory consulting, can help you save money and thrive in the veterinary space.
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Veterinary technicians spend years in intensive training programs to become credentialed professionals. They entered the veterinary field to save lives, provide advanced nursing care, and make a difference for pets and their people. But, in practice, m any credentialed technicians are inappropriately utilized and spend their shifts cleaning kennels and washing, drying, and folding the never-ending pile of veterinary practice laundry. Surely, your team members did not sign up to be licensed laundry professionals. Although every job requires some cleaning, as the facility must remain clean and tidy to minimize disease spread, that shouldn’t be your techs’ main job. Laundry is a necessary evil, but what if you could reclaim that time? Here are five reasons why outsourcing your laundry with Veterinary System Services could be your practice's best decision this year. 1. Harness your team’s talents Credentialed veterinary technicians (CrVTs) are highly trained professionals with advanced nursing skills and invaluable experience. They undergo a rigorous education alongside veterinary students, and that deserves respect. Your CrVTs probably excel at cleaning, too, but that doesn’t mean it's a good use of their talents. Outsourcing your veterinary practice laundry frees up techs to do what they do best—provide excellent care to patients and clients. Your technicians can contribute to the practice’s financial health in other, far more productive ways, such as assisting in surgery, educating clients, tending to hospitalized patients, or keeping the veterinarian’s schedule moving. Plus, technicians who are utilized to the fullest extent of their licensed skills have more job satisfaction. 2. Save time and boost practice efficiency Laundry—which can seem never-ending—is time-consuming for team members, as they load, fold, sort, and restock. Consider what your practice could accomplish if laundry were taken off everyone’s plate—not only your veterinary technicians. Your staff could redirect their energy toward seeing more patients or providing better care. Outsourcing laundry improves overall practice efficiency and ensures you never run out of towels for wrapping patients or surgical gowns for that last-minute emergency procedure. 3. Eliminate hidden costs Doing your own laundry seems like a reasonable solution to help keep operational costs down—your team is already in the building, so they might as well throw in a load of laundry, right? However, doing it yourself has hidden costs: Water and electricity — Constant washing and drying can spike your utility bills. Maintenance — Frequently used washers and dryers need expensive routine repair or replacement. Productivity loss — The time your team spends doing laundry doesn’t generate revenue, while direct patient care does. Outsourcing your veterinary practice laundry is likely more cost-effective in the long run. Pricing is a predictable monthly fee with no surprises related to repairs or leaks. 4. Improve veterinary practice cleanliness Cleanliness in a veterinary practice is about aesthetics and safety. Clients judge a hospital by looks and smells, and maintaining high cleanliness standards protects pets and the community from infectious diseases. However, achieving hospital-grade cleanliness with in-house laundry might take more work than you think. Leaving your veterinary practice laundry to the professionals ensures that your linens meet the highest hygiene standards. Professional equipment, detergents, and disinfectants, plus procedures to reduce cross-contamination, provide a total sanitary environment. 5. Boost morale and retention Your team, especially CrVTs, may feel undervalued when they spend their time and talents on tasks that don’t align with their training and education. Overburdening technicians with non-clinical duties like laundry can lead to burnout and turnover. However, using an outside service for your veterinary practice laundry shows your team you respect their time and credentials, improving team morale and retaining top talent in your clinic. Outsourcing laundry isn’t only about convenience or cost. Using the Veterinary System Services laundry program prioritizes what truly matters—delivering exceptional care and creating a respectful work environment where all your team members can thrive. Contact us to learn more about professional laundry services and give your team the break they deserve!
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