Workers’ Compensation Insurance Cost

Insuring 1 million small businesses worldwide.

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Workers’ Compensation Cost

Your team works hard. If someone gets hurt or sick on the job, workers’ comp can help take care of them — and your business.

Let’s break down what workers’ comp typically costs, what affects the price, and how Simply Business makes getting coverage easier and more affordable.

How Much Does Workers’ Comp Cost?

Here’s a snapshot of what our customers typically pay for workers’ comp insurance:¹

Monthly Workers’ Comp Insurance Costs¹

Under $150

65% of customers

$150 to $250

20% of customers

Over $250

15% of customers

¹Data from Simply Business customers who purchased a WC policy from July 1st, 2024 to December 31st, 2024.

Your monthly premium will depend on a few key things, including: your industry, location, number of employees, and how much coverage you choose. But most small businesses will pay less than $150 per month.

These numbers are based on real policies purchased through our site. But getting a great policy isn’t just about the numbers — it’s about working with a partner that understands your business. And because we work with a range of trusted insurers, you’ll see options to match your business, so you can choose a policy that works for you and your budget.

How Much Will I Pay for Workers’ Comp Insurance?

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Why Do Prices Vary So Much?

If you’ve searched online for workers’ comp insurance, you’ve probably seen a wide range of prices — and no clear reason why. The truth is there isn’t a one-size-fits-all price because the cost depends on several key factors.

We’re dedicated to helping make business insurance easier to understand so we’ve spelled out some of the particulars, such as:

Your industry

The type of work you do plays a big role in your insurance rate. For example, if you run a construction or landscaping business, you might pay more because there’s more risk involved. If you’re a janitor or IT pro, your risk is generally lower — so your premium may be as well.

Top Trades Median Monthly Premium

State	Median Workers’ Comp Monthly Cost²
Carpentry	$206
Handyperson	$173
Landscaping services	$122
Electrical work	$119
Housekeeping	$93
Janitorial services	$89
Child day care services	$85
Software development	$41

²Data from Simply Business customers in the identified trades who purchased a WC policy from July 1st, 2024 to December 31st, 2024.

Location, location, location

The cost of workers’ compensation insurance can vary significantly depending on the state where your employees work. Each state has its own workers’ comp laws and a rating bureau that determines the base rate. And some states even require businesses to purchase workers’ comp directly from them.

Below are examples of the median cost of workers’ compensation insurance across different states:

States Median Monthly Premium

State	Median Workers’ Comp Monthly Cost³
Georgia	$134
California	$130
South Carolina	$127
North Carolina	$117
Virginia	$112
New Jersey	$108
Tennessee	$102
Florida	$99
New York	$76
Texas	$75

³Data from Simply Business customers in the identified States who purchased a WC policy from July 1st, 2024 to December 31st, 2024.

Number of employees

If you have employees, most states require you to carry workers’ comp. And the more employees you have, the more chances there are for something to go wrong. That’s why insurers may ask how many people work for you when calculating your premium.

Payroll

Workers’ comp premiums are often calculated as a percentage of your total payroll — the higher your payroll, the higher your premiums:

Average workers’ comp premium by payroll.

Annual Employee Payroll Band

Median Workers’ Comp Monthly Cost⁴

Less than $50,000

$92

$50,000 to $250,000

$132

$250,000 to $500,000

$212

$500,000 to $1,000,000

$161

$1,000,000 to $2,500,000

$226

⁴Data from Simply Business customers with the identified annual payrolls who purchased a WC policy from July 1st, 2024 to December 31st, 2024.

Policy limits

Higher coverage usually means a higher premium. But it also means more protection if something goes wrong.

And don’t forget the deductible — that’s what you pay out of pocket before the insurance kicks in. In many states, employers can choose to participate in workers’ compensation deductible programs, where they agree to cover a portion of each claim in exchange for a reduced premium. For more information, consult with a legal professional in your state or with one of our licensed agents on the phone.

What else can affect the price?

Your claims history. If you’ve had past claims, that might bump up your rate.
Your experience. Have you been in business for years with no claims? That could work in your favor.

How to Save on Workers’ Comp Insurance

Prioritize workplace safety

Fewer injuries mean fewer claims — and lower workers’ comp costs. Here are a few simple ways to improve safety:

Train your team: Cover safe-lifting techniques, handling hazardous materials, and job-specific best practices.
Gear up: The right protective equipment — like hard hats and non-slip shoes — can prevent costly injuries.
Conduct regular safety checks: Routine inspections can help catch hazards before they lead to accidents.

Having fewer claims over time also can help keep your premiums from increasing.

Review past claims

Looking at previous workers’ comp claims can reveal patterns. Use those insights to help prevent similar incidents in the future.

Consider a minimum premium policy

If you run a low-risk business with only a few employees, you may qualify for a minimum premium policy — the most affordable option available to businesses with strong safety records.

Shop around

Simply Business provides customized coverage options from top-rated small business insurers — all in just 10 minutes. We do all the legwork so you can sit back, compare quotes, and save.

Workers’ Comp

Coverage for the Risks Small Businesses Face

Find out what workers’ comp covers, why you might need it, and how we can help – all in just 60 seconds.

As a business owner, you’re the one making it all happen. But as your business grows, you’re likely to have to bring on some people to help get the job done. And in most states once you have employees, you may need workers’ compensation insurance. Workers’ comp can help cover if an employee gets sick or injured while working for your business, that can include medical rehab, bills loss, wages, and even death benefits. Carrying a workers’ comp insurance policy can prevent an injured employee from suing your business. Workers’ comp laws differ by state, which can make it difficult to figure out what coverage you need. Not to worry, if you need coverage, our high-tech online quote tool is designed to help you get what you need for the state or states you work in. Plus we’ve got helpful licensed agents you can speak to on the phone. Workers’ comp can help take care of your employees and we can help you take care of workers’ comp.

Trusted by Over 1 Million Small Businesses Worldwide.

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More Workers’ Comp FAQs

What is workers’ comp insurance?

It’s a type of insurance that can protect your business and help take care of employees who get sick or injured on the job.

Why do I need workers’ comp insurance?

Because even a single accident or lawsuit could cost your business thousand dollars out of pocket. If workers’ comp is required and you don’t have it, you could be looking at fines, lawsuits, or even criminal charges, depending on your state’s guidelines.

What if I’m just working for myself and have no employees?

Business owners are generally not required to have workers’ comp coverage. However, you may need it to land jobs in certain higher-risk fields, such as construction or roofing. And if you’re a sole proprietor, it can be good to have if a work-related injury or illness puts you out of action.

What does it cover?

Typically covered

If an employee gets sick or injured on the job, workers’ comp typically covers medical payments, lost wages, rehabilitation expenses, and death benefits.

Typically not covered

Client or vendor accidents, OSHA fines, work safety improvements, or wages for a worker who replaces the injured employee.

What if I already have health insurance?

A standard health insurance plan may not cover a work-related illness or injury. Plus, many health insurance plans won’t cover lost income as a result of your injury or rehabilitation and retraining costs.

Is it required in my state?

Workers’ compensation insurance is generally required by law in all states except Texas.* For more information, check out our helpful state guides for California, Colorado, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Wisconsin.

*Texas state law requires that you provide certain notices to your employees.

Is it tax deductible?

Yes, workers’ comp premiums are usually considered a business expense. But always check with your accountant to be sure.

How fast can I get a quote?

You can get a full quote in about 10 minutes — and an estimate even faster, with just 3 quick questions.

What other insurance might I need?

That depends on your business. You can explore more here.

The Simply Business Difference

Simply Business is a digital insurance brokerage. That means we’re not tied to one insurer. Instead, we partner with a range of top-rated carriers and use smart technology to match you with policies that fit your specific business, your risks, and budget.

Maybe you’re just starting out and want solid protection without overspending. Or maybe you’re growing fast and need coverage that can grow with you. Either way, we’re here to help — with a choice of affordable policies and small business expertise to help you get the coverage you need.

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