Best Workers' Compensation Insurance for Small Business

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.

Below are the providers with the best cheap workers comp insurance rates by state:

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 coverage price. Some states have higher insurance rates due to more stringent rules or higher historical claim costs.
• Payroll expenses: A business's amount 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 affects 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 than office-based companies due to the work involved.
• Claims history: A business's 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.

Businesses must 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.

Several factors must be considered when selecting the best workers' compensation insurance for your business. 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.

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. However, to choose the best workers' compensation insurance for you, it's best to compare providers and evaluate your options.

Below are frequently asked questions on finding the best workers' compensation insurance, ensuring adequate coverage and compliance for your small business.

Why Trust MoneyGeek? 

We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses.

MoneyGeek created a scoring system to compare small business insurance companies across four metrics and ranked them based on their scores for. We chose these companies based on their broad national coverage and ability to provide an online quote.

Small Business Sample Profile:
We gathered quotes based on a sample small business profile of a software development LLC with five years in business. We adjusted the number of employees, revenue and payroll, obtaining quotes for the following:

• 5 employees, $1.25 million in annual revenue and $312,500 in annual payroll costs
• 20 employees, $5 million in annual revenue and $1.25 million in annual payroll costs
• 100 employees, $25 million in annual revenue and $6.25 million in annual payroll costs

MoneyGeek’s Scoring System:
In our unique scoring system, companies can earn up to five points in each of four categories. We then use these category scores to calculate an overall MoneyGeek score out of 100. We applied the following weightings to score insurers:

• Affordability: 45%
• Customer satisfaction: 25%
• Financial stability: 20%
• Online quote process: 10%

Each company’s score incorporates customer satisfaction data from the National Association of Insurance Commissioners (NAIC) customer complaint index (we reviewed annual complaint data from 2020 to 2022, the most recent year available) and financial strength ratings from AM Best.

Cost data obtained through online quotes impacted scores, as well. We collected the monthly and yearly cost of a workers’ compensation policy with a $1 million total policy limit, $1 million per accident limit and $1 million per employee limit*. We also measured how many minutes it took to complete an online application and receive a quote from each company.

*Costs for Pie Insurance are based on a policy with a $500,000 total policy limit, $100,000 per accident limit and $100,000 per employee limit. Pie’s online quote tool does not allow users to adjust coverage limits.