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Workers' compensation insurance provides assistance to employees injured on the job. Find out the top choices for workers' comp in our guide.
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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
| Company | Best For | Next StepsBest For |
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Next Business Insurance
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The Hartford Small Business Insurance
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Thimble
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Nationwide Commercial Insurance
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Progressive Commercial Insurance
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Travelers Small Business Insurance
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| Show Fewer Options |
Read more below to learn why we chose these options.
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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:
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:
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.
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 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.
Pricing
Starting at $19/monthTypes Of Insurance Offered
8+ policy typesTime To Receive A Quote
Instant online quotesPros
Cons
NEXT is a relative newcomer to the insurance scene, but this company is making a name for itself with its extreme ease of use. You can ask for a personalized quote and receive it within minutes. Accept the quote and make a payment, and your coverage starts almost immediately. With a strong mobile app that lets you manage your account, getting workers' compensation insurance from NEXT could hardly be any easier.
Get Started With Next Business Insurance
Pricing
Varies. Average general liability is $810/yearTypes of insurance offered
30+ policy typesTime to receive quote
Usually same-dayPros
Cons
The Hartford frequently shows up on our lists of the best insurance providers, so it's no surprise to see this company on the list of the best workers' comp providers. The Hartford offers workers' comp in Washington, D.C., and all US states except Alaska and Hawaii. And you'll find a full range of coverage options with The Hartford, meaning this is a good choice for any size company, including those with complex business insurance needs.
Get Started With The Hartford Small Business Insurance
Pricing
Starting at $17/monthTypes Of Insurance Offered
Basic business coverage + some specialized policiesTime To Receive A Quote
Instant QuotesPros
Cons
Your state may require you to carry workers' comp only for W-2 employees. If you have temporary employees classified as 1099 employees, you may not need to provide workers' comp. However, some clients may ask you to provide proof of insurance before you can start work. If you need workers' comp insurance for temporary workers, Thimble can be a good choice of insurer.
If you work in a seasonal industry like landscaping or work events as a photographer or food vendor, Thimble can help you provide the workers' comp coverage you need at a price you can afford, with coverage available from Thimble by the job or event.
Pricing
By personalized quote onlyTypes Of Insurance Offered
BOP + specialized coverageTime To Receive A Quote
Approximately 30 minutesPros
Cons
Nationwide is one of the nation's top insurers in terms of customer satisfaction, according to a J.D. Power 2022 US Small Commercial Insurance Study. A big part of that high customer satisfaction rating is Nationwide's excellent support for claims. The company has 5,000+ workers in claims services and 24/7 support centers to help you when you need to file a claim. The company also offers general customer support by phone.
Nationwide also works with a network of doctors, hospitals, pharmacies, physical therapists, diagnostic partners, and other medical providers to help connect your employees to care. Nationwide also has a Return-to-Work Program to help employees safely transition back to work.
Get Started With Nationwide Commercial Insurance
Progressive Commercial Insurance |
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Pros
Cons
Progressive offers its commercial insurance customers special competitive pricing through a program known as Progressive Advantage. This program allows businesses to obtain insurance coverage like workers' comp through third-party insurers. Progressive Advantage means you can obtain the best rate for your business on workers' comp while still accessing Progressive's highly rated business coverage for commercial liability, auto, and more.
Get Started With Progressive Commercial Insurance
Pros
Cons
Workers' comp pricing depends on several factors, including the number of employees you need to cover. If you choose to purchase your workers' comp coverage from Travelers, you'll never pay for more coverage than you need, thanks to a free billing option known as Pay-As-You-Go that links your workers' comp premiums directly to your payroll.
You can self-report your numbers each pay period or rely on one of several payroll processing companies to do it for you. Either way, you won't pay for more coverage than you need.
Get Started With Travelers Small Business Insurance
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.
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.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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