Cheap Workers’ Comp Insurance

ERGO NEXT, The Hartford and Thimble offer the cheapest worker's comp insurance, with rates starting at $7 monthly. Your most affordable option depends on what your business does, how many employees you have and where you operate.

Our business insurance team studied employee counts from solo operators to businesses with up to 49 employees make up 95% of small businesses. We also gathered quotes from major insurers across 408 industry types in 46 states and Washington, D.C., to identify which providers consistently offer the lowest rates.

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Written by Angelique Palenzuela-Cruz

Updated: February 2, 2026

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Cheapest Workers' Comp Insurance Companies

These five insurers offer the lowest worker's comp rates most often across our dataset:

ERGO NEXT: Most often cheapest for hands-on service businesses, retail operations and food establishments (cleaning services, beauty salons, retail shops, restaurants)
The Hartford: Usually most affordable for office-based professional services, technology companies and healthcare practices (financial services, consulting, tech startups, medical offices)
Thimble: Usually cheapest for construction contractors, installation services and outdoor work (welding, carpentry, fence installation, tree surgeons)
biBERK: Typically cheapest for fitness venues, recreation businesses and specialty food operations (CrossFit gyms, amusement parks, coffee shops, butcher shops)
Nationwide: Usually cheapest for farming operations, light manufacturing and community organizations (dairy farms, bakery manufacturing, community centers, homeless shelters)

>> [Click on Each Provider to Learn More]

The cheapest workers’ compensation insurance option for your business depends on what you do, where you operate and the number of employees you have (if any). Use these five companies as your comparison starting point.


ERGO NEXT	$86	$1,030	24%
The Hartford	$93	$1,116	18%
Thimble	$105	$1,260	7%
Nationwide	$108	$1,299	4%
biBERK	$109	$1,313	3%
Coverdash	$111	$1,327	2%
Hiscox	$119	$1,432	-6%
Simply Business	$123	$1,476	-9%
Progressive Commercial	$124	$1,486	-10%
Chubb	$149	$1,789	-32%

How We Determined the Cheapest Workers' Comp Insurance Providers

Estimates represent averages across 408 industries in all 46 states and Washington, D.C., for businesses with one to four employees carrying state mandated worker's comp coverage.

DOES CHEAPEST ALWAYS MEAN BEST?

The lowest price doesn't guarantee the right coverage for your business. Compare providers based on policy terms, coverage limits, claims support and customer service quality, not just cost. For a value-based comparison, see our guide to the best workers' compensation insurance companies.

ERGO NEXT: Cheapest Worker's Comp Insurance for Most Businesses

COMPANY HIGHLIGHTS

ERGO NEXT ranks as the most affordable worker's comp option for the widest range of business types in our analysis, coming out cheapest across half of all industries. The company averages $86 per employee monthly ($1,030 annually), which is 24% below the national average, saving small businesses around $27 per employee each month.

Cleaning services, retail operations and food establishments see stronger savings with ERGO NEXT, with some businesses saving up to 40% compared to industry averages.

Most often cheapest for these business profiles:

General industries most often cheapest for: Beauty, Body & Wellness Services, Marketing & Communications, Childcare Services, Food & Beverage, Retail & Product Rental, Pet Care Services, Fitness Services, Education, Repair & Maintenance, Arts, Media & Entertainment, Recreation & Sports, Cleaning Services, Manufacturing, Agriculture & Natural Resources, Wholesale & Distribution, Construction & Contracting, Transportation & Logistics
Employee counts most often cheapest for: 1 to 4 employees
States/Regions most often cheapest in:
- Northeast: CT, DE
- South: AL, GA, KY, LA, NC, OK, SC, TN
- Midwest: IL, KS, WI
- West: AK, AZ, CO, HI, MT, OR, UT

Not a Fit? Jump To: The Hartford, Thimble, biBERK or Nationwide

The Hartford: Cheapest Worker's Comp Insurance for Office-Based Professional Services

*on The Hartford

COMPANY HIGHLIGHTS

The Hartford delivers the lowest worker's comp rates for office-based businesses across professional services, technology and healthcare sectors. At $93 per employee monthly ($1,116 annually), it beats the national average by 18%. The Hartford wins on affordability for 43% of all industries we analyzed, saving these businesses around $20 per employee each month.

Bookkeeping services, mortgage brokers and SEO consultants get the deepest discounts, with rates nearly 50% below industry benchmarks. Healthcare practices and tech companies also benefit from The Hartford's lower pricing.

Most often cheapest for these business profiles:

General industries most often cheapest for: Financial Services, Consulting Services, Real Estate & Property Services, Other Professional Services, Tech/IT, Healthcare & Medical, Hospitality, Travel & Tourism, Nonprofit & Associations
Employee counts most often cheapest for: 5 to 19 employees
States/Regions most often cheapest in:
- Northeast: ME, NH, VT, MA, RI, NY, NJ, PA
- Midwest: IN, IA, MI, MN, MO, NE, SD
- South: AR, FL, MD, MS, TX, VA, WV, DC
- West: CA, ID, NV, NM

Not a Fit? Jump To: ERGO NEXT, Thimble, biBERK or Nationwide

Thimble: Cheapest Workers' Comp Insurance for Construction and Installation Contractors

COMPANY HIGHLIGHTS

Thimble specializes in construction trades and installation work where larger insurers price higher. At $105 per employee monthly ($1,260 annually), specialized contractors pay about 7% less than typical rates in our analysis. That translates to roughly $8 per employee each month for businesses with hands-on trade work.

Snow removal operations and outdoor services get Thimble's best pricing, with rates up to 30% lower than industry benchmarks. Fence installers, siding contractors and restoration specialists also benefit from competitive pricing in these niche construction categories.

Most often cheapest for these business profiles:

Sub-industries most often cheapest for: Interior Design, Architecture Firm, Funeral Home, Welding Contractor/Shop, Snow Removal Service, Irrigation Services, Tree Surgeon, Fence Installation, Sandblasting Contractor, Siding Contractor, Door and Window Installation, Carpentry, Restoration Contractor

Not a Fit? Jump To: ERGO NEXT, The Hartford, biBERK or Nationwide

biBERK: Cheapest Workers' Comp Insurance for Recreation and Fitness Venues

COMPANY HIGHLIGHTS

biBERK targets niche recreation and fitness markets where standard carriers charge more. Specialty gyms, entertainment venues and small food operations pay $109 per employee monthly ($1,313 annually), about 3% less than typical market rates in our analysis. For these specialized businesses, that means monthly savings around $3 per employee.

Fitness-focused businesses benefit most from biBERK's specialized approach. CrossFit gyms pay up to 31% less than industry averages, with boxing studios, sports coaching businesses and small amusement parks finding similar cost advantages in their specific categories.

Most often cheapest for these business profiles:

Subindustries most often cheapest for: Boxing Gym, Juice Bar/Smoothie Shop, Coffee Shop/Cafe, Cigar Lounge, CrossFit Gym, Golf Course (9-hole/Small), Butcher Shop, Amusement Park (Small), Driving Range, Reeferee/Umpire, Mini Golf, Skate Park, Roller Skating Rink, Haunted House, Go-Kart Track, Badminton Player/Coach/Club, Cheerleading, Football Player/Coach/Club, Cannabis Growers

Not a Fit? Jump To: ERGO NEXT, The Hartford, Thimble or Nationwide

Nationwide: Cheapest Workers' Comp Insurance for Larger Small Businesses

COMPANY HIGHLIGHTS

Nationwide delivers strong value for growing businesses with 20 to 49 employees across farming, manufacturing and community service operations. These mid-sized operations pay $108 per employee monthly ($1,299 annually) with Nationwide, about 4% below standard market pricing in our analysis. Businesses in this size range save approximately $5 per employee each month.

Farms see particularly competitive rates from Nationwide. Dairy and poultry operations cut costs up to 27% below typical agricultural rates, while small farms, greenhouse operations and bakery manufacturers also find cost-effective coverage in these specialized sectors.

Most often cheapest for these business profiles:

Subindustries industries most often cheapest for: Community Center, 3D Printing Services, Homeless Shelter, Small Farm, Poultry Farm, Dairy Farm (Small), Firearms Instructor, Greenhouse Operation, Bakery Manufacturing, Screen Printing
Employee counts most often cheapest for: Cheapest for 20 to 49 employees

Not a Fit? Jump To: ERGO NEXT, The Hartford, Thimble or biBERK

Explore The Cheapest Workers’ Comp Insurance By Industry

If you want industry-specific pricing, we've built guides for the cheapest workers' comp insurance based on what your business does.

Cheapest Workers' Comp Insurance For Contractors

Cheapest Workers' Comp Insurance For Food Businesses

Cheapest Workers' Comp Insurance For Tech Businesses

Cheapest Workers' Comp Insurance For Retail Businesses

Cheapest Workers' Comp Insurance For Transportation Businesses

Cheapest Workers' Comp Insurance For Wholesale Businesses

Explore The Cheapest Workers' Comp Insurance By State

For state-specific rates, we've built guides on the cheapest workers' comp insurance based on where your business operates.

Cheapest Workers' Comp Insurance Alabama

Cheapest Workers' Comp Insurance Alaska

Cheapest Workers' Comp Insurance Arizona

Cheapest Workers' Comp Insurance Arkansas

Cheapest Workers' Comp Insurance California

Cheapest Workers' Comp Insurance Colorado

How To Get Cheaper Workers' Comp Insurance Without Sacrificing Protection

If you need to lower your workers' comp costs, these strategies can help you find better rates without leaving your business exposed to workplace injury risks:

Compare quotes with identical coverage terms

A lower premium doesn't mean better value if one policy caps employer's liability at $100,000 while another offers $1 million. Get worker's comp insurance quotes with the same limits, deductibles and coverage options so you're comparing actual cost, not just the cheapest number on paper.

Make sure your employee classifications are accurate

Insurers assign different rates to different job types based on injury risk. If your employees are coded as higher-risk than the work they actually do, you're overpaying. Request a class code review before renewal to catch misclassifications that inflate your premium.

Only buy coverage add-ons you actually need

Waiver of subrogation, hired and non-owned auto coverage or voluntary compensation extensions cost extra. Before adding them, confirm a client contract or lender requires it. Dropping unnecessary endorsements can cut costs without affecting your core protection.

Report payroll honestly and track it throughout the year

Your premium is based on payroll, and underreporting to save money now can backfire during the annual audit with surprise bills and penalties. Accurate payroll tracking from the start keeps your initial estimate close to your final cost and prevents audit adjustments that hurt your budget.

Invest in safety programs that insurers track and reward

Carriers track your industry's injury rates and your own claims history when setting rates. Documented safety training, return-to-work programs and incident prevention protocols can qualify you for discounts or keep you out of higher-risk pricing tiers over time.

Help injured workers return to work quickly

The longer an employee stays out on a claim, the more it costs your insurer and affects your future rates. Offering modified duty, staying in contact during recovery and coordinating with medical providers can shorten claim duration and keep your experience modification factor lower.

Affordable Workers' Comp Insurance: Bottom Line

There isn't one provider that's cheapest for every business as your most affordable option depends on your industry, employee count and location. The lowest-cost policy works when it covers state-required benefits, matches your actual payroll and job classifications, and includes endorsements contracts require. Use our page to identify providers that price lowest for businesses like yours, then compare quotes with identical terms to find the best rate that still meets your legal obligations.

If You Want To Confirm Your Cheapest Option: Get Matched To Your Cheapest Provider

Cheap Workers' Comp Insurance: Next Steps

If you want to confirm which provider offers the lowest cost for your business, compare quotes with identical payroll estimates, employee classifications and policy limits. Getting matched to providers based on your industry and location helps narrow down which insurers price most competitively for your profile.

If you're still weighing options, the industry guides and state breakdowns on this page show how pricing patterns shift based on what you do and where you operate. These resources can help you understand the tradeoffs and feel confident in your choice.

If you want in-depth guides on workers’ comp insurance:

What is Workers’ Compensation Insurance and What Does It Cover?
Do I Need Workers’ Comp Insurance?
Workers’ Comp Insurance Requirements
Pay-as-You-Go Workers’ Comp
How to Get Workers’ Compensation Insurance
Workers’ Comp Insurance for the Self-Employed
Workers’ Compensation Insurance for Contractors
General Liability vs. Workers’ Comp Insurance Coverage

If you want to explore costs and compare providers:

If you want to explore other coverage types:

Get Matched To The Cheapest Workers' Comp Insurer

Select your industry and state to get a customized quote from the most affordable workers' comp insurance provider for you.

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How We Determined The Cheapest Workers' Comp Insurance Providers

To identify the cheapest workers' comp insurers, we analyzed real pricing data from 10 major providers and modeled a large set of standardized pricing estimates across common U.S. small business profiles.

Dataset scope and assumptions

Providers analyzed: 10 major insurance providers
Industries covered: 408 industries (each assigned a representative workers' comp class code based on the most common job classifications)
Geography: all U.S. states and territories (including Washington, D.C.)
Employee count bands: 0, 1–4, 5–9, 10–19 and 20–49 employees (95% of market)
Policy baseline: standard state-required workers' compensation coverage
Pricing estimates modeled: just over 1 million total estimates

We also incorporated modeled average payrolls across business profiles to improve pricing accuracy, since workers' comp premiums are calculated based on payroll and classification codes.

How we determined which provider was “cheapest”

We used this dataset to determine which insurers were most often the lowest-cost option across different business profiles. Our “cheapest” rankings include both:

General Recommendation: Provider rankings based on average estimated per-employee pricing for a standardized one to four employee business profile across all industries and states in our dataset.
Factor Combination Recommendations: Provider rankings based on which insurer was most often cheapest within specific business factor combinations. For example:
- Industry × State pricing was compared using a standardized 1–4 employee profile
- Employee count affordability was derived by comparing aggregated per-employee pricing trends across industries and states

Important note: These results represent standardized pricing estimates, not personalized quotes. Actual pricing can vary based on your specific employee classifications, actual payroll, claims history and the specific limits, deductibles and endorsements you choose. For the most accurate cheapest-provider answer, we recommend comparing quotes apples-to-apples using the same coverage limits.

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About Angelique Palenzuela-Cruz

Angelique Palenzuela-Cruz is a Content Writer at MoneyGeek specializing in business insurance. She focuses on general liability, workers' compensation and professional liability coverage, helping small business owners cut through policy jargon and understand what they're actually buying.

Angelique has spent over five years reporting on personal finance, with deep experience in both insurance and lending markets. Her psychology background also gives her a unique understanding of how people actually process difficult financial decisions, allowing her to meet readers where they are, simplify complex concepts and build decision making frameworks that give them confidence. Whether you're learning about policies, comparing providers or trying to figure out requirements, Angelique does the legwork, digging into regulations, analyzing policy language and testing her explanations against agent-level standards so you get straight answers without fluff.

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