Best Workers' Compensation Insurance for Small Business in 2024

As a business owner, workers' comp insurance protects you and your employees from the financial burdens of workplace injuries or illnesses. MoneyGeek explored the best workers' compensation insurance providers and ranked Pie as our top insurer, thanks to its unbeatable combination of affordability and lightning-fast quote process. We also found the best workers' compensation insurance providers for customer satisfaction, financial stability, micro businesses and mid-sized businesses to help you find the best insurer for your company's needs.

Pie is the leading provider of workers' comp insurance, earning a MoneyGeek score of 92 out of 100. Below is a table showcasing the costs and MoneyGeek scores for all the companies we analyzed, allowing businesses to make informed decisions about the best and most affordable workers' comp insurance options available.

The Hartford is MoneyGeek's leading choice for workers' comp insurance in terms of customer satisfaction, having earned the highest customer satisfaction score among companies on our list. With a notable MoneyGeek score of 91 out of 100, The Hartford demonstrates its commitment to delivering excellent service. However, at a monthly cost of $165, coverage from this provider is fairly costly.

biBERK secures its position as the top choice for workers' comp insurance in terms of financial stability, boasting the highest rating among insurers we analyzed of A++ from AM Best. biBERK earned an overall MoneyGeek score of 89 out of 100. It's worth noting that biBERK's monthly cost of $181 is relatively high compared to other insurers on our list. However, businesses looking for unparalleled financial stability can rely on biBERK for reliable workers' compensation coverage.

The Hartford emerges as MoneyGeek's top choice for micro businesses seeking workers' comp insurance. This provider showcases its expertise in catering to the needs of micro businesses with a MoneyGeek score of 93 out of 100 for companies with five employees and annual payroll costs of $312,500. Both employee count and payroll costs significantly influence workers' comp insurance premiums, with payroll being the primary cost factor.

Offering a monthly cost of $65 for businesses with five employees, The Hartford provides an affordable option, ranking as the second-cheapest insurer on our list. Micro businesses, typically defined as small-scale enterprises with fewer than 10 employees, can rely on The Hartford for comprehensive coverage at an affordable price.

Pie is MoneyGeek's top choice for midsize businesses seeking workers' comp insurance. With a MoneyGeek score of 92 out of 100 for businesses with 100 employees and $6.25 million in annual payroll costs, Pie proves its expertise in catering to the needs of midsize companies.

Both employee count and payroll costs significantly impact workers' comp insurance premiums, with payroll being the major cost factor. With a monthly premium of $427 for businesses with 100 employees, Pie Insurance offers the most affordable option, allowing midsize businesses to secure comprehensive coverage while managing their costs effectively.

The average monthly cost of workers' compensation insurance is $168 for a business with 20 employees and $1,250,000 in annual payroll costs. However, this cost can vary significantly based on several factors that impact the calculation, including each company's:

• Location: Workers' compensation insurance costs can differ based on the state where a business operates. Each state has its own regulations, rates and market conditions, which can affect the cost of coverage. Some states have higher insurance rates due to more stringent regulations or higher historical claim costs.
• Payroll expenses: The amount a business spends on employee wages directly influences workers' comp insurance costs. Generally, higher payroll expenses lead to higher premiums, as insurance providers consider larger wage amounts an increased risk for potential claims.
• Number of employees: The size of a workforce plays a crucial role in determining workers' comp costs. Businesses with more employees typically face higher premiums as there is a greater likelihood of injuries or illnesses occurring when more people are involved in daily operations.
• Industry and class code: The industry in which a business operates and its corresponding class code significantly impact workers' comp premiums. Different industries have varying levels of risk associated with them. For example, construction or manufacturing businesses often have higher premiums compared to office-based companies due to the nature of the work involved.
• Claims history: A business' past claims history influences the premiums it pays for workers' comp insurance. If a company has a history of frequent and costly claims, insurance providers may view that company as posing a higher risk and charge higher premiums accordingly. Conversely, a clean claims history can result in lower insurance costs.

It's important for businesses to consider these factors and work to minimize risks, promote safety measures and maintain a favorable claims history. By doing so, they can potentially reduce the cost of workers' compensation insurance and ensure the well-being of their employees.

When selecting the best workers' compensation insurance for your business, it's crucial to consider several factors. Following these steps can help you make an informed decision.

By following these steps, you can make an informed decision when getting workers' compensation insurance for your business, ensuring adequate coverage and protection for your employees and mitigating potential financial risks.

Understanding your workers' compensation insurance options, costs and requirements is crucial for small business owners to protect their employees and mitigate potential risks. Below, we provide insights on finding the best workers' compensation insurance, ensuring adequate coverage and compliance for your small business.