Workers’ comp insurance is required in all states except Texas to protect your business and employees if injured. It helps compensate for their lost wages, pays for their medical care, and may assist them with vocational rehabilitation if they need to retrain for new employment. It also pays a death benefit to employee families in the event of a fatality. That's why having the best worker's comp insurance is so important. Read on for the best workers’ comp insurance options this year to offer more for less.
Quick Look: Best Workers’ Comp Insurance:
#1 Provider of Workers Comp for Small Businesses:The Hartford
securely through The Hartford Workers Comp's website
Founded in 1810, Hartford has a long history of insuring businesses and providing excellent support when needed most. It ranks highly on various lists as one of the best insurance companies in the nation.
If you're a small-business owner, you don't need to spend extra time haggling with insurance companies. That's where ‘The Hartford’ shines. Its customers have high ratings, citing its easy claims process, flexible billing options, and even a pay-as-you-go option.
Hartford is also known for covering companies in the construction industry. Its risk engineering specialists can provide advice and guidance on improving worksite safety, helping with company performance. In addition, Hartford offers job site surveys, safety manual assistance, OSHA training, safety management workshops, and more.
It also has an extensive medical network with over one million providers and a Nursed Back to Health Program. That program uses experienced nurse case managers to coordinate care and support your employees, ensuring effective responses to any issues.
Why We Love It: It's a hassle-free, entirely paperless process. You'll get an assigned representative for each case who is easy to reach — a significant plus in insurance.
2. Best for Tailored Coverage: Simply Business
Best For:
Tailored coverage
VIEW PROS & CONS:
securely through Simply Business Insurance's website
Simply Business offers a comprehensive suite of business insurance that specializes in making it easy to insure your business. Whether you’re looking for construction workers' insurance or insurance for your startup, Simply Business helps you find the right coverage at the right price. It gets an impressive 4.7 out of five stars on TrustPilot based on 1,142 reviews. You can get almost instantaneous, affordable quotes from top insurance providers through Simply Business, letting you compare the best terms.
Why We Love It: This insurance marketplace allows you to get quotes from multiple providers on one site, including various third-party insurance options. It also has an excellent resource library.
3. Best for Bundling Commercial Policies: Progressive
Best For:
Bundling commercial policies
securely through Progressive Workers Comp's website
Another major name in the insurance space, Progressive offers reliable insurance offers and protection for small businesses. Don't want to deal with multiple insurance providers? Progressive also offers auto, home, and renters insurance. It is known for protecting hundreds of thousands of small business owners nationwide.
You could get the Progressive Advantage Business Program. With one call or a few clicks, you can secure a business owner's policy, professional liability insurance, commercial auto insurance, and workers’ compensation insurance. Whether you contact it by phone or online, Progressive's experts can help you choose the right workers’ comp policy for your business or bundle other insurance policies.
Why We Love It: Progressive is an established name in reliable insurance. It allows you to bundle various business insurance policies, making it a one-stop business insurance shop. However, you'll get workers’ comp from another provider vetted by Progressive.
4. Best for Industry-Specific Specialized Protections: Liberty Mutual
securely through Liberty Mutual Powered by Tivly's website
The coronavirus pandemic highlighted the immense risks that health care organizations face. Liberty Mutual has a dedicated health care team that understands these risks and how to support organizations and their employees.
But it's also the sixth largest insurance company by market share, holding workers' compensation insurance for 4.06% of all companies, ahead of famous companies like Berkshire Hathaway.
It offers workers’ compensation tailored to specific industry needs so you get the risk coverage you need without the extras. Liberty Mutual's worker's comp covers infectious diseases as a lingering effect of the pandemic that is still valid for many industries.
It is also ahead of the curve in addressing issues like employee fatigue and burnout, which are increasing in many industries.
Liberty Mutual offers safety and risk mitigation guidance and has a reputation for excellent customer service, making it a consistent top pick.
Why We Love It: Liberty Mutual offers coverage for complex risks. You'll work with a team skilled at addressing workplace challenges and improving safety and have good workers' compensation insurance.
5. Best for Small Businesses with Both Part and Full-Time Employees: Hiscox
Small businesses with both part and full-time employees
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securely through Hiscox's website
Hiscox focuses on helping small businesses get the specialized insurance they need. It offers online quotes. You can buy insurance online and get a certificate of insurance within minutes. That's a plus. Unfortunately, the company has a very high level of customer complaints.
Despite that, Hiscox offers flexible payment options, which are critical for small business, especially retail businesses. Additionally, you file a workers’ compensation claim, it assigns a dedicated claims representative to ensure your employee is taken care of. In addition to workers’ comp coverage, Hiscox also offers business owners policies, general liability coverage and other insurance options to customize your coverage.
Why We Love It: Hiscox makes the insurance application process easy, with a wide availability of policy types for small businesses. Despite complaints, it has good overall online features, including claim filing, quotes, certificates of insurance, and policy changes.
6. Best for Staying Compliant With State and Federal Regulations: biBERK
Staying compliant with state and federal regulations
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securely through biBERK's website
biBERK is part of the Berkshire Hathaway Insurance Group and has over 40 years of insurance experience. It offers a streamlined online application process and the option of speaking with an insurance expert on the phone for personalized service.
biBERK gets an impressive four out of five stars on TrustPilot, based on 945 reviews. It is a solid choice for small businesses that must ensure their workers’ compensation policies comply with state and federal law as they grow. With biBERK, you can access your free Certificate of Insurance (COI) anytime. Just visit biBERK's website to get a new one if needed.
Why We Love It: Many customers report good support and a simple claims process. Its rates can be competitive for many industries. You can get instant coverage and instant certificates of insurance online.
CoverWallet is a concierge service that gives small business insurance quotes customized to specific industries and unique needs. It's designed to simplify the insurance application process. Businesses can get quotes and manage all their business insurance policies in one place, including liability, workers' compensation insurance, business owner policies and commercial auto insurance.
Unfortunately, it recently received many negative reviews. That said, CoverWallet offers coverage for risks that are limited in other policies. For example, you can get coverage for self-inflicted injuries, pain and suffering, injuries incurred off the job, and actions that violate company policy. Your business insurance uses technology, meaning your coverage is customized and optimized based on your needs.
Why We Love It: It has an A+ Better Business Bureau Rating. Many customers were satisfied with fair settlements and good customer service.
8. Best for Reviewing Quotes From Trusted Providers: Tivly
Matching you to the provider that best fits your needs
VIEW PROS & CONS:
get started through Tivly’s website
Comparing insurance quotes is always a good idea, and Tivly makes that easy. It's a one-stop shop for workers' compensation policies that compare quotes from various providers. Tivly is partnered with over 200 providers and will match you with the one that fits your needs. Just fill out the application criteria online and get quotes from multiple providers. Tivly works with providers like Progressive, The Hartford, and Liberty Mutual, from the list, making it a great starting point to find reliable workers' compensation insurance.
Why We Love It: It has an easy quote process that allows you to compare 200 providers to match with the one that fits your needs. Get a customized quote for different types of business insurance.
What Is Workers’ Compensation Insurance?
Workers' compensation is a specialized type of insurance that provides cash benefits or medical care for workers injured or who become ill as a direct result of their jobs. Employers must pay for this insurance in all states except Texas, and employees don't have to pay. These policies are designed to protect both businesses and their employees.
Is Workers' Comp Insurance Required?
Workers’ compensation insurance is required in all states except for Texas. In addition to needing the insurance, you will need a certificate of insurance available. In most states, you must post this certificate in the place of business. If you’re a sole proprietor or self-employed and don’t have any employees, whether you need workers’ comp insurance depends on state laws.
Additionally, some states require you to purchase workers' comp insurance from a state fund. These states are North Dakota, Ohio, Washington, and Wyoming. Several states, including California, New York, Illinois, and Pennsylvania, have severe penalties for not carrying workers’ comp insurance. Penalties involve fines, imprisonment, or both.
How Much Does Workers' Compensation Insurance Cost?
How much workers’ comp insurance costs depends on the industry, size of your business, location, and claim history. Here are the factors that affect total costs:
Type of work or business: The National Council on Compensation Insurance assigns a business class code linked to your industry.
Business Location: State laws vary, so insurance costs vary as states may add taxes and fees.
Payroll size: Generally, the larger the payroll, the greater your coverage needs and the higher your insurance premium.
Claims history: If you have a claims history, your costs may increase or decrease depending on how your claims compare to similar businesses.
Industry
Average Cost Per Year
Construction
$4,101
Hotels and motels
$1,586
Real estate
$255
Transportation and warehousing
$3,300
Wholesale trade
$1,800
What Does Workers' Compensation Insurance Cover?
Workers’ compensation insurance covers a variety of risks related to your business's operations, including direct liability and the employee's lost wages or medical costs.
Employers Liability
Employers' liability includes workplace dangers that cause accidents, injuries, or illnesses. Workers' compensation offers protection if an employee claims your business is liable for damages.
Lost Wages
Workers’ comp will cover the lost wages if an employee is injured or ill due to workplace issues. This can include cash payments made directly to the employee.
Medical Expenses
If your employees need medical care due to workplace injury, even if they have other health insurance, workers’ comp insurance is designed to cover this medical care. The medical expenses portion of a workers' compensation policy includes medical treatment for a work-related illness or injury. It covers emergency room visits, surgery costs, prescriptions, and therapies.
Temporary and Permanent Disability Benefits
Temporary disability pays for lost wages while employees cannot work during short-term recovery. It also makes payments if an employee can only return to work on a limited basis or perform limited duties at a lower wage. Permanent disability pays for lost wages when an employee cannot return to work continuously.
Classification
What It Means
Temporary total disability
The employee cannot perform any job functions but is expected to recover.
Temporary partial disability
The employee may be able to do some light work but not all of their previous work. They're expected to recover.
Permanent total disability
The employee cannot do any work due to serious illness or injuries and isn't expected to return to work.
Permanent partial disability
Employees can perform light tasks but aren't expected to return to their previous workload.
Rehabilitation
This can include physical therapy or other therapies, medicines, and treatments necessary for the employee to recover. This may also include an inpatient rehabilitation facility.
Retraining or Supplemental Job Displacement Benefits
This coverage helps employees unable to return to their previous work due to work-related injuries to acquire new skills or training to reenter the workforce. This is usually training in a new area to pursue a different career.
Survivor Benefits
Survivor benefits are paid to the surviving spouse or family member. This is usually a cash payment. In some states, the surviving spouse, minor children, or dependents are entitled to weekly cash benefits.
Death Benefits
When death benefits are added by endorsement, the policy pays financial support to the deceased’s family and covers funeral and burial expenses.
What Isn’t Covered By Workers' Comp Insurance?
Sometimes, you'll need to add specific coverage or a rider. Generally, workers’ comp insurance won't cover:
Employee-caused accidents:For example, injuries caused by horseplay or fooling around. Injuries that occur while intoxicated also aren't covered.
Self-inflicted injuries: Related to the above, it won't be covered if the employee inflicts the injury.
Off-duty injuries: Injuries during a voluntary, off-duty recreational activity aren't covered.
Previous employees' injuries: Injuries after being laid off or terminated aren't covered.
Illegal hires: In some cases, workers’ comp insurance won't cover injuries to illegally employed individuals.
How to Choose the Best Insurance Companies for Workers’ Compensation
When choosing the best insurance companies for workers’ compensation, key considerations include:
Understand Policies for Coverage Across Different States
You might need different policies depending on where your business is located and the states in which it operates. It's essential to learn the state requirements to meet compliance for your business and all areas of operation.
Compare Different Insurance Providers
When comparing insurance providers, check flexible payment options, bundling options, financial ability to pay claims, a network of health care providers, and positive customer and third-party reviews. You can use Tivly to compare various providers easily.
Work With an Experienced Insurance Broker or Agent
Working with an experienced insurance broker or agent can be a practical solution, especially if you have a large business and need someone to help you compare all available options. An experienced insurance broker can also suggest which insurance you need to protect your business.
Final Tips on Buying Workers' Compensation Insurance
Workers' comp insurance is an essential protection for businesses of all sizes. Carefully check state laws to understand necessary coverage. Workers’ compensation insurance takes care of employees while preserving your business's cash flow. Contact one or more of our recommended providers or get a free quote online.
Frequently Asked Questions
Q
Are all employees covered by workers' compensation?
A
Yes, all employees are covered by workers’ compensation insurance as long as they work for the company.
Q
Who is not required to have workers' compensation insurance coverage?
A
Employers in Texas aren’t required to have workers’ compensation insurance. In addition, some self-employed individuals may not be required to have workers’ comp.
Q
Do businesses need to get workers' comp insurance for only one employee?
A
Yes, usually, even with one employee, your business will need workers’ comp. Most state laws require small businesses with at least one employee to carry workers’ compensation insurance.
Q
Can self-employed get workers' compensation insurance?
A
You might not be required to have workers’ compensation insurance as a self-employed individual, but you could choose to get coverage.
Q
How long do workers' compensation benefits last?
A
How long workers’ compensation benefits last varies by state. It also depends on whether it’s a temporary disability, permanent disability, or a full or partial disability.
Q
What is a workers’ compensation insurance audit?
A
A workers’ comp audit is an annual confirmation that your premium matches your actual payroll and you have the necessary coverage. The insurance company checks and compares your business metrics to your last year’s audit or estimates.
Methodology
Benzinga crafted a specific methodology to rank workers comp insurance. We prioritized carriers based on coverage options, specialized industries, customer service experience and how quickly and easily you're able to get insured including online tool usage. We also included workers comp insurance quote aggregators in lists to make it easy and efficient to compare policy quotes and options. To see a comprehensive breakdown of our methodology, please visit see our Workers' Compensation Insurance Methodology page.
Most Dangerous Industries Per State
The construction industry reports the most injuries and workers' compensation claims in 38 out of 50 states.
Second place goes to the forestry industry, followed by the transportation industry. By law, businesses with more than 1 employee must carry workers' compensation insurance. Workers' compensation insurance protects both your business and employees and creates a safety net for wage replacements and medical benefits.
Use our calculator to determine how much workers' compensation will cost you and your business.
Alison Plaut is a personal finance, business, and insurance writer with a sustainable MBA, passionate about helping people understand insurance choices and financial options to create financial freedom. She has more than 17 years of writing experience, focused on insurance, real estate, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she is a regular contributor for Benzinga.
