Thimble offers the cheapest workers' comp insurance at $31 monthly ($378 annually) among the carriers MoneyGeek studied. Progressive Commercial, Simply Business and Hiscox follow closely with monthly rates of $35 and below.
Small Business Insurance
Cheapest Workers' Comp Insurance
Updated: July 1, 2025
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Key Takeaways
Thimble offers the cheapest workers' comp insurance at $31 monthly ($378 annually) across most industries and states.
The cheapest workers' comp provider depends on your business type, industry classification, state location and claims history.
Find cheap workers' comp by understanding state requirements, getting multiple quotes, maximizing discounts and bundling policies.
Cheapest Workers' Comp Insurance Companies
| Thimble | $31 | $378 |
| Progressive Commercial | $34 | $408 |
| Simply Business | $35 | $421 |
| Hiscox | $35 | $422 |
| The Hartford | $36 | $428 |
| Coverdash | $36 | $432 |
| NEXT | $37 | $440 |
| biBERK | $37 | $445 |
| Nationwide | $40 | $474 |
| Chubb | $42 | $509 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ compensation policies.
LEARN MORE ABOUT WORKERS’ COMPENSATION INSURANCE
Cheapest Workers' Comp Insurance by Industry
Thimble offers the cheapest workers' compensation across all industries MoneyGeek researched. Find the cheapest workers' comp rates for your industry below.
| Accountants | Thimble | $9 | $105 |
| Ad Agency | Thimble | $7 | $82 |
| Auto Repair | Thimble | $65 | $781 |
| Automotive | Thimble | $50 | $602 |
| Bakery | Thimble | $23 | $275 |
| Barber | Thimble | $6 | $72 |
| Beauty Salon | Thimble | $6 | $75 |
| Bounce House | Thimble | $17 | $206 |
| Candle | Thimble | $17 | $206 |
| Cannabis | Thimble | $36 | $430 |
| Catering | Thimble | $32 | $378 |
| Cleaning | Thimble | $21 | $250 |
| Coffee Shop | Thimble | $20 | $241 |
| Computer Programming | Thimble | $12 | $145 |
| Computer Repair | Thimble | $10 | $124 |
| Construction | Thimble | $77 | $929 |
| Consulting | Thimble | $13 | $156 |
| Contractor | Thimble | $71 | $851 |
| Courier | Thimble | $97 | $1,162 |
| DJ | Thimble | $6 | $72 |
| Daycare | Thimble | $6 | $69 |
| Dental | Thimble | $5 | $58 |
| Dog Grooming | Thimble | $28 | $333 |
| Drone | Thimble | $11 | $137 |
| Ecommerce | Thimble | $9 | $112 |
| Electrical | Thimble | $25 | $295 |
| Engineering | Thimble | $16 | $196 |
| Excavation | Thimble | $46 | $550 |
| Florist | Thimble | $26 | $314 |
| Food | Thimble | $18 | $217 |
| Food Truck | Thimble | $20 | $235 |
| Funeral Home | Thimble | $11 | $137 |
| Gardening | Thimble | $20 | $241 |
| HVAC | Thimble | $27 | $323 |
| Handyman | Thimble | $40 | $481 |
| Home-based | Thimble | $4 | $52 |
| Hospitality | Thimble | $30 | $358 |
| Janitorial | Thimble | $21 | $250 |
| Jewelry | Thimble | $13 | $155 |
| Junk Removal | Thimble | $60 | $722 |
| Lawn/Landscaping | Thimble | $16 | $193 |
| Lawyers | Thimble | $23 | $271 |
| Manufacturing | Thimble | $25 | $302 |
| Marine | Thimble | $64 | $773 |
| Massage | Thimble | $6 | $75 |
| Mortgage Broker | biBERK | $7 | $84 |
| Moving | Thimble | $112 | $1,341 |
| Nonprofit | Thimble | $14 | $163 |
| Painting | Thimble | $60 | $719 |
| Party Rental | Thimble | $16 | $189 |
| Personal Training | Thimble | $11 | $129 |
| Pest Control | Thimble | $30 | $361 |
| Pet | Thimble | $13 | $158 |
| Pharmacy | Thimble | $3 | $33 |
| Photography | Thimble | $7 | $88 |
| Physical Therapy | Thimble | $3 | $35 |
| Plumbing | Thimble | $28 | $330 |
| Pressure Washing | Thimble | $36 | $430 |
| Real Estate | Thimble | $13 | $154 |
| Restaurant | Thimble | $27 | $325 |
| Retail | Thimble | $15 | $180 |
| Roofing | Thimble | $358 | $4,292 |
| Security | Thimble | $22 | $268 |
| Snack Bars | Thimble | $19 | $223 |
| Software | Thimble | $11 | $136 |
| Spa/Wellness | Thimble | $7 | $89 |
| Speech Therapist | Thimble | $3 | $31 |
| Startup | Thimble | $6 | $67 |
| Tech/IT | Thimble | $12 | $140 |
| Transportation | Thimble | $98 | $1,179 |
| Travel | Thimble | $3 | $36 |
| Tree Service | Thimble | $95 | $1,135 |
| Trucking | Thimble | $115 | $1,385 |
| Tutoring | Thimble | $4 | $52 |
| Veterinary | Thimble | $8 | $101 |
| Wedding Planning | Thimble | $12 | $146 |
| Welding | Thimble | $50 | $602 |
| Wholesale | Thimble | $17 | $206 |
| Window Cleaning | Thimble | $89 | $1,073 |
| mortgage broker | Thimble | $6 | $71 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ compensation policies.
Cheapest Workers' Comp Insurance by State
Thimble offers the cheapest workers' compensation across all 45 states in MoneyGeek's research. See which providers offer the cheapest workers' compensation insurance in your state.
| Alabama | Thimble | $31 | $371 |
| Alaska | Thimble | $29 | $347 |
| Arizona | Thimble | $30 | $360 |
| Arkansas | Thimble | $30 | $363 |
| California | Thimble | $35 | $420 |
| Colorado | Thimble | $31 | $375 |
| Connecticut | Thimble | $34 | $410 |
| Delaware | Thimble | $34 | $406 |
| Florida | Thimble | $34 | $409 |
| Georgia | Thimble | $32 | $384 |
| Hawaii | Thimble | $33 | $398 |
| Idaho | Thimble | $30 | $359 |
| Illinois | Thimble | $35 | $414 |
| Indiana | Thimble | $31 | $369 |
| Iowa | Thimble | $30 | $360 |
| Kansas | Thimble | $31 | $367 |
| Kentucky | Thimble | $29 | $353 |
| Louisiana | Thimble | $36 | $431 |
| Maine | Thimble | $27 | $327 |
| Maryland | Thimble | $30 | $361 |
| Massachusetts | Thimble | $33 | $396 |
| Michigan | Thimble | $30 | $358 |
| Minnesota | Thimble | $30 | $355 |
| Mississippi | Thimble | $32 | $380 |
| Missouri | Thimble | $31 | $374 |
| Montana | Thimble | $31 | $376 |
| Nebraska | Thimble | $30 | $358 |
| Nevada | Thimble | $36 | $430 |
| New Hampshire | Thimble | $31 | $376 |
| New Jersey | Thimble | $36 | $427 |
| New Mexico | Thimble | $32 | $380 |
| New York | Thimble | $36 | $431 |
| North Carolina | Thimble | $27 | $327 |
| Oklahoma | Thimble | $30 | $357 |
| Oregon | Thimble | $29 | $352 |
| Pennsylvania | Thimble | $36 | $431 |
| Rhode Island | Thimble | $35 | $415 |
| South Carolina | Thimble | $32 | $389 |
| South Dakota | Thimble | $29 | $354 |
| Tennessee | Thimble | $31 | $369 |
| Texas | Thimble | $32 | $381 |
| Utah | Thimble | $30 | $362 |
| Vermont | Thimble | $30 | $363 |
| Virginia | Thimble | $29 | $345 |
| West Virginia | Thimble | $33 | $396 |
| Wisconsin | Thimble | $31 | $371 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ compensation policies.
How to Get the Cheapest Workers' Comp Insurance
Smart shopping can save your small business hundreds or thousands annually on workers' comp insurance. These steps can help you find the lowest rates:
- 1
Understand the state requirements
Know your state's exact requirements to avoid paying for coverage you don't legally need. Sole proprietors can often exclude themselves, corporate officers may opt out in many states, and some states don't require coverage until you reach three to five employees.
- 2
Get quotes from multiple sources
Shop at least three channels: direct insurers, independent agents and online platforms. Rates vary between insurers for identical coverage, making comparison shopping your biggest money-saving opportunity.
- 3
Maximize discounts
Apply for discounts that can substantially reduce premiums. Also, consider bundling workers' comp with general liability or business owner's policies for additional savings. Paying annually can save 5% to 10% compared to monthly billing fees.
- 4
Adjust your deductible
A higher deductible can reduce premiums by 10% to 15%. It’s worth considering if you have sufficient cash flow to cover potential out-of-pocket costs.
- 5
Reduce your business's claim risk
Implement safety training programs, maintain clean work environments and document safety procedures. An EMR of 0.8 would reduce your premiums by 20%.
- 6
Consider alternative coverage options
Explore pay-as-you-go policies for seasonal businesses, state fund insurance if private insurers are expensive or occupational accident insurance in states where workers' comp is optional.
- 7
Watch for hidden fees and costs
Compare total annual costs including any audit fees, policy fees or payment processing charges. The lowest workers' comp premium isn't always the cheapest if it includes expensive audit adjustments or administrative fees.
- 8
Time your purchase right
Shop 60 to 90 days before renewal instead of auto-renewing, and address safety violations before getting quotes. Strategic timing and clean records unlock better rates from competing insurers.
Your cheapest option combines competitive base rates with maximum discounts, proper risk management and coverage that matches your business needs.
Cheapest Workers’ Compensation Insurance: Bottom Line
Thimble consistently offers the cheapest workers' comp insurance at $31 monthly across most industries and states, though the best provider for your business depends on your unique situation. Start by understanding your state's requirements, then compare quotes from multiple insurers while maximizing available discounts and bundling opportunities.
Cheap Workers’ Comp Insurance: FAQ
We answered frequently asked questions about finding and buying cheap workers' comp insurance for your small business:
What's the cheapest workers' compensation insurance?
Thimble offers the cheapest workers' compensation insurance at $31 monthly ($378 annually). Progressive Commercial offers the second most affordable option at $34 monthly ($408 annually).
How can I get cheap workers' comp insurance?
Understand your state's requirements to avoid unnecessary coverage, then get quotes from at least three sources. You can also maximize discounts, annual payment plans and bundling options while watching out for hidden fees.
How do I find the best workers' comp insurance provider for my business?
Compare total annual costs, including hidden fees, not just base premiums, to find the best workers' compensation insurance. Consider whether you need local agent support or prefer online-only providers.
Which industries have the cheapest workers' compensation rates?
Speech therapists pay the least at $31 annually, followed by pharmacies at $33 annually. Home-based businesses, tutoring and dental practices also enjoy low rates under $60 annually.
Which states offer the cheapest workers' comp insurance?
Maine and North Carolina tie for the cheapest coverage at $27 monthly, followed by Virginia at $29 monthly. Alaska, Oregon, Kentucky and South Dakota also offer competitive rates under $30 monthly.
What factors affect workers' compensation costs the most?
Your industry classification has the biggest impact, followed by your Experience Modification Rating (EMR). Annual payroll directly calculates costs per $100, while your state location creates considerable variations.
What's an Experience Modification Rating, and how does it affect my premium?
Your Experience Modification Rating (EMR) multiplies your premium based on your claims history. A 1.0 represents average risk, so an EMR of 1.2 increases premiums by 20% and 0.8 reduces them by 20%.
How much does workers' compensation insurance typically cost?
The average cost of workers' compensation varies dramatically depending on your industry, state location, claims history and payroll size. With providers like Thimble, the cheapest options start at $31 monthly. Low-risk industries, such as speech therapy, cost as little as $3 monthly.
What are pay-as-you-go workers' comp policies?
Pay-as-you-go policies let you make monthly payments based on actual payroll instead of large upfront premiums, which is helpful for businesses with seasonal fluctuations.
Who’s exempt from workers' comp insurance?
Workers' compensation exemptions vary by state but typically include independent contractors, volunteers and sole proprietors. Some states don't require coverage until you have three to five employees.
What’s workers' compensation insurance, and how does it work?
Workers' compensation insurance pays for medical expenses, lost wages and rehabilitation costs when employees are injured or sick at work. It operates on a no-fault basis, meaning employees receive benefits regardless of who caused the workplace incident. In exchange, employees typically can't sue their employer for workplace injuries.
What injuries and illnesses do workers' comp not cover?
Workers' comp won't pay for injuries caused by drug or alcohol use, self-inflicted harm, accidents during commutes or workplace horseplay.
What's the difference between workers' comp and other business insurance?
Workers' comp specifically covers employee workplace injuries and illnesses, while general liability covers customer injuries and property damage.
Can employees sue me if workers' comp covers them?
Workers' compensation generally protects employers from employee lawsuits related to workplace injuries through the "exclusive remedy" rule. However, employees can still sue for intentional harm or violations of labor laws.
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.
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About Mark Fitzpatrick
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.