6 Best Workers’ Comp Insurance For Small Business

Workers' compensation insurance provides assistance to employees injured on the job. Find out the top choices for workers' comp in our guide.

Kymberlin earned her Bachelor of Arts in Creative Writing from Pacific University in 2020 and resides in Portland, Oregon.

• WRITTEN & RESEARCHED BY

  Kymberlin Bush Kymberlin earned her Bachelor of Arts in Creative Writing from Pacific University in 2020 and resides in Portland, Oregon.

  Expert Contributor

  Last updated onUpdated August 29, 2023



Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been with Merchant Maverick helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well. She currently resides in Boise, Idaho.

REVIEWED BY

Chelsea Krause Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been with Merchant Maverick helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well. She currently resides in Boise, Idaho.

Lead Staff Writer

Workers’ compensation insurance is a legal requirement for businesses operating in 49 US states. The lone exception is Texas. If your business is in any other state, you must carry workers’ comp. Most states require workers’ comp as soon as you hire one employee, although others tie the requirement to higher payroll numbers. Be sure you understand your state’s requirements.

Because workers’ comp is legally required, it’s important to choose the right insurance company to work with. If you’re already working with one of the best insurance companies for small business, there’s a good chance your insurance provider also offers workers’ comp policies.

If not, this post will help you find a good insurance provider to help you meet the legal requirements to provide workers’ compensation insurance to your employees.

Learn More About Our Top Picks

Read more below to learn why we chose these options.

What Is Workers' Comp Insurance?

Workers’ compensation insurance is one of the few types of business insurance that you may be legally required to carry.

Unlike most business insurance, workers’ comp insurance offers direct protections to your employees. If a worker is injured or harmed on the job, workers’ comp makes direct payments to the employee.

Here is a brief look at the types of incidents you can expect workers’ comp to cover:

Who Needs Workers' Comp Insurance?

Every state takes a slightly different approach to workers’ compensation insurance, so it’s important to make sure you understand your state’s workers’ comp laws.

For example, some states do not require workers’ compensation coverage for agricultural workers or real estate agents. Government workers are also exempt. (They are covered under a federal program instead.) In many states, business owners are allowed to exempt themselves from their company’s workers’ comp program.

Volunteers and independent contractors are usually exempt from coverage, too.

Twelve states require a minimum number of employees before workers’ comp is needed. If you live in the following states, check state law to determine if you need workers’ comp insurance:

• Alabama
• Arkansas
• Florida
• Georgia
• Mississippi
• New Mexico
• North Carolina
• Rhode Island
• South Carolina
• Virginia
• Wisconsin

Once you understand the workers’ comp requirements for your state and business type, it’s time to start looking for the best workers’ comp provider.

How Much Does Workers Compensation Insurance Cost?

The cost of workers’ comp insurance depends on several factors that are unique to your business. For that reason, you’ll need to submit some basic information to the insurance company of your choice to get a personal price quote.

Factors include your payroll size, your industry, and your claims history. Smaller companies with fewer employees typically pay less for workers’ comp.

According to insurance aggregator Insureon, the US national average for workers’ compensation insurance is $45/mo. However, that number can start to crawl upward for a variety of reasons — and could be significantly higher for businesses in high-risk categories.

We have included basic pricing information where possible for each of the insurance providers included on this list. Keep in mind that this is an average or starting cost in each case. You must contact the provider to ask for a personal quote for your small business.

The Best Workers' Comp Insurance For Small Business

The best workers’ comp insurance companies can take care of all your small business insurance needs. We think The Hartford, NEXT, Nationwide, Thimble, Progressive, and Travelers offer the best workers’ comp coverage.

The Hartford: Best Overall Workers' Comp For Small Business

Get Started With The Hartford Small Business Insurance

Read our in-depth review

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NEXT: Best Workers' Comp For Easy Online Quotes & Coverage

Get Started With Next Business Insurance

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Nationwide: Best Claims Support For Workers' Comp

Get Started With Nationwide Commercial Insurance

Read our in-depth review

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Thimble: Best Workers' Comp For Independent Contractors

Get Started With Thimble

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Progressive: Best Workers' Comp For Competitive Pricing

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Get Started With Progressive Commercial Insurance

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Travelers: Easiest Workers' Comp For Real-Time Charges

Get Started With Travelers Small Business Insurance

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Business Insurance Review Methodology

Merchant Maverick has been researching and reviewing business insurance since 2020. Our writers have tested over twenty different major insurance companies. In each review, we evaluate pricing, features, customer service, and user reviews.

Read more about how we rate business insurance providers.

When comparing different business insurance companies, we consider many data points, including relative pricing, the number of standard insurance policies available, and the ability to create custom policies. Our lists of the best business insurance providers include only those we’ve deemed worthwhile from multiple vantage points and often share qualities such as low cost, a variety of niche business insurance policies, multiple ways to file claims, and excellent customer support.

We spend an average of 10-15 hours researching and updating each one of our lists, ensuring that the business insurance companies included meet our internal standards for quality and reputation.

Which Workers' Comp Insurance Is Right For Your Small Business?

No two small businesses are exactly alike. That’s why we include a range of options on our list of the best workers’ compensation insurance for small businesses. Whether your business is still small or on the large side and growing bigger, we have included a good choice for you on this list.

We recommend asking for no-obligation price quotes from at least three insurance companies. Make sure you understand your insurance quote from each company, so you can make fair comparisons and choose the right one to work with.

Workers Comp FAQs

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