Workers' Compensation Insurance

Geo depth: Class C

Workers' compensation insurance covers medical costs and lost wages for employees injured on the job, and it generally shields employers from most employee lawsuits over workplace injuries in exchange for that coverage. Nearly every state requires it once a business has employees, with rules varying by state.

Compare Workers' Compensation Insurance rates

What is workers' compensation insurance?

Workers' comp generally covers medical costs and a portion of lost wages for an employee injured or made ill on the job, regardless of fault, and in exchange, it typically limits an injured employee's ability to sue their employer directly over that injury — often called the "exclusive remedy" trade-off.

Nearly every state requires workers' compensation coverage once a business has employees, but the specific employee-count threshold, allowed exemptions (e.g., for sole proprietors or certain contractors), and whether coverage can be self-insured all vary meaningfully by state. {{VERIFY: your specific state's workers' comp requirement and thresholds}}.

What affects your workers' compensation insurance cost

Typical costs vary significantly by state, provider, and personal factors — {{VERIFY: national average workers' compensation insurance premium not yet sourced}}. Rather than a single number, the factors below are what actually move your quote up or down.

State where employees work (rules and rates vary significantly by state)
Industry classification code(s) for the work performed
Total payroll
Claims history (experience modification rating)
Safety programs and workplace injury-prevention measures in place
Number and type of employees (e.g., office vs. manual labor)

How to compare workers' compensation insurance providers

Price is only one part of the decision. Before choosing a provider, compare each of the following side by side:

Coverage limits, and exactly what's included or excluded
Deductible options and how a higher or lower deductible changes the premium
Financial strength ratings from an independent rating agency (e.g., AM Best, S&P, Moody's) — an indicator of an insurer's ability to pay future claims
Customer service and claims-handling reputation, including complaint-ratio data where a state Department of Insurance publishes it
Available discounts and bundling options
Confirmation that the carrier is licensed to write this coverage in your state

Related calculators

Workers' Comp Premium Estimator

Explore workers' compensation insurance by state

Coverage requirements and licensed carriers for workers' compensation insurance vary by state. Here are a few popular starting points, or browse the full state directory below.

Workers' Compensation Insurance FAQ

Do all businesses need workers' compensation insurance?

Nearly all states require it once a business has employees, but the exact employee-count threshold and available exemptions vary by state. {{VERIFY: your specific state's requirement}} — check directly with your state's labor or workers' comp agency.

Can an injured employee still sue their employer if workers' comp applies?

Generally, accepting workers' comp coverage limits an employee's ability to sue their employer directly for a workplace injury (the "exclusive remedy" principle), though exceptions exist, such as for intentional harm. Rules vary by state. {{VERIFY: state-specific exceptions}}.

How is my workers' comp premium calculated?

It's typically based on your payroll, the industry classification code(s) assigned to the work your employees do, and your experience modification rating — a factor reflecting your claims history relative to similar businesses — not a flat fee per employee.

Ready to see workers' compensation insurance options?

Compare providers side by side using the factors above, then see options tailored to your state and situation.