Updated: September 11, 2025

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Key Takeaways

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NEXT offers the cheapest workers' comp insurance at $69 monthly ($829 annually) across most industries and states.

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The cheapest workers' comp provider depends on your business type, industry classification, state location and claims history.

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Cost-saving strategies change as your business grows: startups save through classification codes, while established businesses reduce premiums via Experience Mod Rates.

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Preventing workers' comp claims cuts your insurance costs, but tactics vary between industries: construction firms need safety training while restaurants should avoid kitchen burns and cuts.

Cheapest Workers' Comp Insurance Companies

NEXT has the lowest workers' compensation rates at $69 per month ($829 annually) in our survey of workers' comp providers. That's $5 less than the $74 industry average monthly rate. The Hartford and Thimble both charge under $75 monthly, giving you several budget-friendly choices.

NEXT Insurance$69
The Hartford$70
Thimble$71
Progressive Commercial$71
Simply Business$71
Hiscox$72
Coverdash$73
biBERK$75
Nationwide$81
Chubb$85

How Did We Determine These Rates?

Find Insurance for Your Business

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Cheapest Overall

MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options

  • Average Cost of Workers’ Comp

    $69/month

  • Savings Compared to Industry Average

    $5/month

  • Claims Process

    3.9

  • Likely to be Recommended to Others

    4.8

Cheapest Workers' Comp Insurance by Industry

NEXT consistently offers the cheapest workers' comp insurance rates across all 79 industries we analyzed. Speech therapists pay the lowest monthly rates at $6 from NEXT Insurance, on par with the industry average. Roofing contractors face the highest costs at $784 monthly, though this is still $54 below the $838 industry average.

AccountantsNEXT Insurance$19
Ad AgencyNEXT Insurance$15
Auto RepairNEXT Insurance$143
AutomotiveNEXT Insurance$110
BakeryNEXT Insurance$50
BarberNEXT Insurance$13
Beauty SalonNEXT Insurance$14
Bounce HouseNEXT Insurance$38
CandleNEXT Insurance$38
CannabisNEXT Insurance$79
CateringNEXT Insurance$69
CleaningNEXT Insurance$46
Coffee ShopNEXT Insurance$44
Computer ProgrammingNEXT Insurance$27
Computer RepairNEXT Insurance$23
ConstructionNEXT Insurance$170
ConsultingNEXT Insurance$28
ContractorNEXT Insurance$156
CourierNEXT Insurance$213
DJNEXT Insurance$13
DaycareNEXT Insurance$13
DentalNEXT Insurance$11
Dog GroomingNEXT Insurance$61
DroneNEXT Insurance$25
EcommerceNEXT Insurance$20
ElectricalNEXT Insurance$54
EngineeringNEXT Insurance$36
ExcavationNEXT Insurance$100
FloristNEXT Insurance$58
FoodNEXT Insurance$40
Food TruckNEXT Insurance$43
Funeral HomeNEXT Insurance$25
GardeningNEXT Insurance$44
HVACNEXT Insurance$59
HandymanNEXT Insurance$88
Home-basedNEXT Insurance$9
HospitalityNEXT Insurance$66
JanitorialNEXT Insurance$46
JewelryNEXT Insurance$28
Junk RemovalNEXT Insurance$132
Lawn/LandscapingNEXT Insurance$36
LawyersNEXT Insurance$50
ManufacturingNEXT Insurance$55
MarineNEXT Insurance$141
MassageNEXT Insurance$14
Mortgage BrokerNEXT Insurance$13
MovingNEXT Insurance$245
NonprofitNEXT Insurance$30
PaintingNEXT Insurance$132
Party RentalNEXT Insurance$35
Personal TrainingNEXT Insurance$24
Pest ControlNEXT Insurance$66
PetNEXT Insurance$29
PharmacyNEXT Insurance$6
PhotographyNEXT Insurance$16
Physical TherapyNEXT Insurance$6
PlumbingNEXT Insurance$60
Pressure WashingNEXT Insurance$79
Real EstateNEXT Insurance$28
RestaurantNEXT Insurance$59
RetailNEXT Insurance$33
RoofingNEXT Insurance$784
SecurityNEXT Insurance$49
Snack BarsNEXT Insurance$41
SoftwareNEXT Insurance$25
Spa/WellnessNEXT Insurance$16
Speech TherapistNEXT Insurance$6
StartupNEXT Insurance$12
Tech/ITNEXT Insurance$26
TransportationNEXT Insurance$216
TravelNEXT Insurance$7
Tree ServiceNEXT Insurance$207
TruckingNEXT Insurance$253
TutoringNEXT Insurance$9
VeterinaryNEXT Insurance$18
Wedding PlanningNEXT Insurance$27
WeldingNEXT Insurance$110
WholesaleNEXT Insurance$38
Window CleaningNEXT Insurance$197

How Did We Determine These Rates?

Cheapest Workers' Comp Insurance by State

NEXT has the cheapest workers' comp coverage in 40 states, while The Hartford offers the lowest rates in six states.

Small business owners in North Carolina enjoy the most affordable rates at $59 from NEXT ($4 below the $64 state average). Although NEXT is also the cheapest option in New York, its monthly rate is $80. It's the highest among the states in our study, though still $5 under the state average.

AlabamaNEXT Insurance$67
AlaskaNEXT Insurance$63
ArizonaThe Hartford$65
ArkansasNEXT Insurance$66
CaliforniaNEXT Insurance$76
ColoradoThe Hartford$68
ConnecticutNEXT Insurance$75
DelawareNEXT Insurance$74
FloridaNEXT Insurance$74
GeorgiaNEXT Insurance$70
HawaiiNEXT Insurance$73
IdahoNEXT Insurance$65
IllinoisThe Hartford$75
IndianaNEXT Insurance$67
IowaNEXT Insurance$65
KansasNEXT Insurance$67
KentuckyNEXT Insurance$64
LouisianaNEXT Insurance$80
MaineNEXT Insurance$59
MarylandNEXT Insurance$66
MassachusettsNEXT Insurance$72
MichiganNEXT Insurance$65
MinnesotaNEXT Insurance$65
MississippiNEXT Insurance$69
MissouriNEXT Insurance$68
MontanaNEXT Insurance$69
NebraskaNEXT Insurance$65
NevadaNEXT Insurance$78
New HampshireNEXT Insurance$69
New JerseyThe Hartford$78
New MexicoNEXT Insurance$70
New YorkNEXT Insurance$80
North CarolinaNEXT Insurance$59
OklahomaNEXT Insurance$65
OregonNEXT Insurance$64
PennsylvaniaNEXT Insurance$80
Rhode IslandNEXT Insurance$75
South CarolinaNEXT Insurance$71
South DakotaThe Hartford$65
TennesseeNEXT Insurance$67
TexasThe Hartford$70
UtahNEXT Insurance$66
VermontNEXT Insurance$66
VirginiaNEXT Insurance$62
West VirginiaNEXT Insurance$72
WisconsinNEXT Insurance$67

How Did We Determine These Rates?

A Guide to Get the Cheapest Workers' Comp Insurance

Finding cheap workers' comp insurance is just the first step. Qualifying for the best rates requires strategy. Your business structure, industry classification and timing can cut hundreds or thousands from your annual premium. Smart shopping means combining competitive quotes with optimization tactics that reduce your total costs.

Cost-Savings by Business Type and Structure

Your business structure affects workers' comp costs in ways that can save or cost you thousands annually. Different structures offer unique exemptions and ways to reduce what you pay.

You don't need workers' comp for yourself, just your employees.
Maintain clear records, separating your work from employee tasks. Converting to an LLC provides liability protection while preserving exemptions.
Partnership
Partners typically don't need coverage, but employees do.
Document partner versus employee roles clearly. Putting partners on employee payroll triggers unnecessary premiums.
LLC (Single-member)
Most states let you skip coverage for yourself as the owner.
Research your state's exemption rules first. Annual opt-out paperwork and separate member/employee activities are essential.
LLC (Multi-member)
Members can often opt out, but employee-members need coverage.
Each member should weigh opt-out benefits against coverage costs. Structuring pay to minimize covered payroll reduces premiums.
S Corporation
Owner-officers can exempt themselves from coverage.
Exemption paperwork and reasonable officer salaries are both required. Extremely low salaries raise audit red flags.
C Corporation
Officers need coverage, but you can limit how much payroll counts toward premiums.
Compensation caps work strategically here. Structure bonuses and benefits to avoid inflating workers' comp costs.
Franchise Operations
You might get group rates through your franchisor, but have less control over your coverage.
Independent shopping often beats franchisor group rates. Negotiate coverage terms whenever possible.

Disclaimer

Cost-Savings Strategies by Business Phase

Your workers' comp insurance needs change as your business grows, and knowing when to make key moves can save you money. The strategies that work for a startup don't always make sense once you're established.

Startup Phase

Pick the right business structure from the start. LLCs and S-Corps let owners skip workers' comp coverage, while sole proprietors often can't. Get your worker classification codes right the first time, or you'll pay inflated rates for years. Don't classify yourself as an employee if you're the owner. It's a common mistake that could cost you hundreds monthly.

Growth Phase

Double-check employee classifications when adding new roles. Your bookkeeper shouldn't be coded as a construction crew. Research exemption rules before expanding to new states, since each one handles owner coverage differently. Keep payroll organized across locations to avoid inflating your risk ratings when audited.

Established Business Phase

Focus on your Experience Mod Rate (EMR), which compares your claims history to similar businesses. Dropping from 1.0 to 0.8 cuts your premium by 20%. Invest in safety programs that reduce workplace injuries instead of just checking compliance boxes. Set up return-to-work programs and injury response plans that keep claims costs low and workers productive.

Preventing Workers' Comp Claims by Industry

Some businesses need workers' comp more than others. Construction and manufacturing companies can't operate without it, while solo consultants often qualify for exemptions. Prevention beats reaction every time since fewer claims mean better Experience Mod Rates and lower premiums.

  • Weekly inspections of scaffolding, ladders and power tools catch problems before someone gets hurt.
  • Morning job site walk-throughs work best when your crew knows to speak up about unsafe conditions.
  • OSHA 10 safety training reduces accidents, and many insurers offer discounts for certified teams.
  • Lockout/tagout procedures save lives when everyone knows where the emergency stops are.
  • Chemical handling gets safer with proper ventilation, protective gear and clear spill cleanup plans.
  • Equipment maintenance prevents most serious injuries, since mechanical failures cause most accidents.

Transportation or Trucking

  • Thorough pre-trip inspections matter most for brakes, tires and visibility equipment.
  • Safe loading techniques and mechanical aids protect drivers from heavy package injuries.
  • Weather and breakdown protocols prevent the rushed decisions that cause accidents.

Restaurant or Food Service

  • Non-slip mats help in wet areas, but worn mats create more falls than bare floors.
  • Kitchen safety covers knife handling, hot surface awareness and grease fire response.
  • Proper lifting techniques matter even more when you're busy with temporary help who don't know your systems.

Health Care (Dental or Veterinary)

  • Patient lifting equipment and proper techniques protect your back since shortcuts aren't worth career-ending injuries.
  • Follow needlestick prevention rules even when you're running behind schedule.
  • Current infection control procedures protect both patients and staff from exposure incidents.
  • Protective equipment for chemical handling includes teaching which products never mix safely.
  • Ergonomic tools and techniques prevent repetitive motion injuries that develop over the years.
  • Wet floor protocols and ladder safety become critical in multi-story buildings.
  • Customer de-escalation training teaches staff when to call security instead of handling problems alone.
  • Lifting limits and team-lift policies prevent hernias from heavy inventory moves.
  • Immediate spill cleanup and clear walkways stop slip-and-fall claims before they happen.

Cheapest Workers’ Compensation Insurance: Bottom Line

NEXT offers the cheapest workers' comp insurance at $69 monthly, but your actual costs vary based on your location, claims history and business type. How you manage business insurance costs changes as your company grows. Start by getting the right classification codes, then work on improving your Experience Mod Rate over time. Focus on preventing workplace injuries common in your industry that drive up premiums.

Cheap Workers’ Comp Insurance: FAQ

Finding cheap workers' comp insurance raises questions about costs, requirements and business strategies. We answered the most frequently asked questions:

How much does workers' comp insurance cost for small businesses?

What industries have the highest workers' comp insurance rates?

Which states require workers' compensation insurance?

Can business owners exempt themselves from workers' comp coverage?

How does your Experience Mod Rate affect workers' comp premiums?

How do workers' comp and general liability insurance compare?

How We Chose the Cheapest Small Business Insurance Companies

We focused our research exclusively on affordability, analyzing which providers offered the lowest workers' comp premiums for small businesses.

Every quote used identical parameters to ensure fair comparisons:

  • Two employees (three people in total, including the owner)
  • $150,000 annual payroll
  • $300,000 annual revenue
  • Already insured status
  • $1 million/$2 million aggregate coverage

This profile represents cost-conscious small businesses that need workers' comp in most states but prioritize saving money on premiums. We chose companies offering broad national coverage and online quote capabilities.

Cheap Workers' Comp Insurance: Related Articles

About Mark Fitzpatrick

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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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