NEXT and The Hartford both earned top MoneyGeek scores of 4.58 out of 5 for the best workers' comp insurance for small businesses, but NEXT has a lower monthly rate of $69. That's $5 below the industry average of $74. We also found that Simply Business and Coverdash are strong alternatives for workers' compensation coverage.
Best Workers’ Comp Insurance for Small Business
The Hartford and NEXT tie for the best workers' comp insurance for small businesses, earning MoneyGeek scores of 4.58 out of 5.
Discover the best workers’ comp insurance for small businesses from NEXT and other providers below.
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Updated: September 11, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford, NEXT and Simply Business have the best workers' comp insurance for small businesses.
The best workers' comp insurance for you depends on your industry, business size and budget.
To get the best workers' comp insurance, determine your coverage needs based on your business structure and industry risks, then compare policies from multiple carriers, leveraging discount programs and bundling opportunities.
Best Workers’ Comp Insurance Companies
| NEXT Insurance | 4.58 | $69 |
| The Hartford | 4.58 | $70 |
| Simply Business | 4.50 | $71 |
| Coverdash | 4.47 | $73 |
| Progressive Commercial | 4.46 | $71 |
| Thimble | 4.45 | $71 |
| biBERK | 4.44 | $75 |
| Hiscox | 4.42 | $72 |
| Nationwide | 4.39 | $81 |
| Chubb | 4.21 | $85 |
Disclaimer
We gathered these quotes for a small business with two employees and $150,000 in payroll, but your actual rates depend on your industry, location, safety record and claims history. Your quotes will likely differ since every business has unique risk factors.
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Best Workers’ Comp Insurance Companies by State
We found that NEXT is the best workers' comp insurance provider in 33 states, while The Hartford is the top provider in 13 states. These rankings exclude Ohio, North Dakota, Washington and Wyoming, which only offer state-run workers' compensation programs.
| Alabama | The Hartford | 4.60 |
| Alaska | NEXT | 4.62 |
| Arizona | NEXT | 4.62 |
| Arkansas | The Hartford | 4.61 |
| California | NEXT | 4.59 |
| Colorado | The Hartford | 4.64 |
| Connecticut | NEXT | 4.61 |
| Delaware | NEXT | 4.61 |
| Florida | NEXT | 4.58 |
| Georgia | NEXT | 4.59 |
| Hawaii | NEXT | 4.59 |
| Idaho | NEXT | 4.61 |
| Illinois | The Hartford | 4.61 |
| Indiana | The Hartford | 4.60 |
| Iowa | The Hartford | 4.62 |
| Kansas | NEXT | 4.62 |
| Kentucky | NEXT | 4.60 |
| Louisiana | NEXT | 4.58 |
| Maine | NEXT | 4.61 |
| Maryland | The Hartford | 4.63 |
| Massachusetts | NEXT | 4.60 |
| Michigan | NEXT | 4.59 |
| Minnesota | NEXT | 4.60 |
| Mississippi | NEXT | 4.61 |
| Missouri | The Hartford | 4.60 |
| Montana | The Hartford | 4.60 |
| Nebraska | The Hartford | 4.61 |
| Nevada | NEXT | 4.61 |
| New Hampshire | NEXT | 4.62 |
| New Jersey | NEXT | 4.60 |
| New Mexico | The Hartford | 4.63 |
| New York | NEXT | 4.60 |
| North Carolina | NEXT | 4.60 |
| Oklahoma | The Hartford | 4.61 |
| Oregon | NEXT | 4.59 |
| Pennsylvania | NEXT | 4.60 |
| Rhode Island | NEXT | 4.60 |
| South Carolina | NEXT | 4.61 |
| South Dakota | NEXT | 4.59 |
| Tennessee | NEXT | 4.60 |
| Texas | NEXT | 4.62 |
| Utah | NEXT | 4.61 |
| Vermont | NEXT | 4.61 |
| Virginia | NEXT | 4.61 |
| West Virginia | NEXT | 4.59 |
| Wisconsin | The Hartford | 4.59 |
Best Workers’ Comp Insurance Review
Finding the right workers' comp insurer means looking beyond just price. We evaluated the top providers based on what matters most to your business: affordable rates, responsive customer service when you need to file a claim, and coverage availability in your state. Here's how NEXT, Progressive Commercial and Simply Business stack up.
NEXT
Best for Customer Service
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Cost of Workers’ Comp
$69/monthlyWe analyzed thousands of workers' compensation quotes from insurers operating in California across 79 industriesOur Survey: Claims Process
3.9/5Our Survey: Likely to Recommend to Others
4.8/5
Progressive
Best for Affordability
MoneyGeek Rating
4.5/ 5
4.7/5Affordability
4.1/5Customer Experience
4.3/5Coverage Options
Average Cost of Workers’ Comp
$71/monthlyWe analyzed thousands of workers' compensation quotes from insurers operating in California across 79 industriesOur Survey: Claims Process
3.6/5Our Survey: Likely to Recommend to Others
4.2/5
Simply Business
Best for Coverage Options
MoneyGeek Rating
4.5/ 5
4.6/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Cost of Workers’ Comp
$71/monthlyWe analyzed thousands of workers' compensation quotes from insurers operating in California across 79 industriesOur Survey: Claims Process
3.7/5Our Survey: Likely to Recommend to Others
4.2/5
How to Get the Best Workers’ Comp Insurance
Choosing workers' comp insurance can feel overwhelming when you're not sure what your business actually needs. We analyzed requirements across business structures, industries and payroll sizes to simplify the process. Check your state's workers' comp requirements first, then use our personalized recommendations to get the right coverage while controlling costs.
Workers' Comp Insurance Needs by Business Structure
Your business structure determines whether you need workers' comp insurance and who gets protected. Rules vary between business structures, so knowing your specific requirements helps you avoid unexpected legal and financial problems.
Sole Proprietorship | You don't need coverage without employees, but once you hire anyone (including family or part-time help), you're required to get it. | Your regular health insurance won't cover work injuries, so consider whether you want voluntary coverage. Construction business owners in some states, like Colorado, must formally reject coverage if they don't want it. |
Corporation/LLC | Corporate officers are usually covered automatically, while LLC members aren't considered employees unless you have other workers. | Exemption rules vary widely by state. Massachusetts lets officers with 25% ownership opt out, but New Jersey covers all officers. Check your state's specific rules before assuming you're exempt. |
Partnership | Partners are exempt, but you must cover any non-partner employees. | If an employee gets injured without coverage, someone can sue the partners personally for medical bills and lost wages. Those judgments can target your personal assets, not just business property. |
Independent Contractors | Contractors handle their own coverage, but hiring them creates risk if they're actually employees under the law. | The Department of Labor has recovered over $41 million since 2021 for misclassified workers. Signing a contractor agreement doesn't determine legal status. What matters is whether they're economically dependent on your business. |
Workers' Comp Insurance Needs by Industry
Different industries face different workplace risks, which means your workers' comp costs vary dramatically depending on what your business does. Construction companies pay more than accounting firms because their workers get hurt more often. Here's what to expect based on your industry.
Construction or Trades | More than $2 million per occurrence, more than $5 million aggregate (total amount the insurer will pay for all claims in a policy period). | Falls from heights, ladder accidents, heavy equipment injuries and material handling incidents create the highest workplace fatality rates. |
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Health Care or Medical | Moderate limits ($1 million to $2 million per occurrence, $2 million to $3 million aggregate). | Lifting injuries from patient care, needle stick exposures, back strains from transfers and workplace violence incidents create ongoing hazards. |
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Manufacturing | Moderate to higher limits ($1 million to $3 million per occurrence, $2 million to $5 million aggregate), depending on equipment and processes. | Heavy equipment accidents, repetitive motion injuries, chemical exposures and material handling incidents create significant injury risks. |
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Office or Professional Services | Lower limits acceptable ($500,000 to $1 million per occurrence, $1 million to $2 million aggregate) for desk-based work. | Ergonomic injuries from computer work, slip-and-fall incidents and occasional contractor accidents create low but consistent claim patterns. |
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Restaurant or Retail | Standard limits ($1 million per occurrence, $2 million aggregate). | Burns from kitchen equipment, cuts from knives, slip-and-fall incidents from wet floors and sore joints from repetitive work. |
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Workers' Comp Insurance Needs by Payroll Size
Your annual payroll size affects workers' comp premium calculations and coverage scaling more than employee count alone. We analyzed how businesses at different payroll levels approach coverage to help you plan appropriate protection as wages and staffing grow.
Small Payroll (Under $100,000) | Basic coverage limits ($500,000 per occurrence, $1 million aggregate) with accurate classification codes. Pay-as-you-go options help manage cash flow. | Small businesses often hit minimum premium thresholds because insurers have fixed costs to cover regardless of payroll size. If your revenue swings with the seasons, expect surprises at your year-end audit that can strain your cash flow. |
Medium Payroll ($100,000 to $500,000) | Standard coverage limits ($1 million per occurrence, $2 million aggregate), focusing on experience modification rating (EMR), which is a multiplier based on your claims history that increases or decreases your workers' comp premium. Implement safety programs to maintain favorable rates. | Report large payroll changes during your policy to minimize audit surprises and better manage premiums. Medium-sized businesses often qualify for dividend plans and group programs that can reduce costs. |
Large Payroll ($500,000 and more) | Higher coverage limits ($2 million or more per occurrence, $3 million or more aggregate) with experience rating focus. Consider safety certifications and return-to-work programs for cost management. | Self-insurance becomes an option requiring $5 million net worth and $500,000 annual income with state approval. Group self-insurance pools offer alternatives for companies in similar industries. |
How to Get the Best Deal on Workers' Comp Insurance
Insurance costs can eat into your budget, but understanding what drives your premiums helps you find real savings. We analyzed discount programs and premium factors to help you secure affordable workers' comp coverage without cutting corners on protection.
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Understand Your Premium Factors
Your experience modification rating (EMR) compares your claims history to similar small businesses and directly impacts what you pay. Even one workplace injury can affect your rates for three years, so knowing how classification codes and payroll size factor into calculations helps you plan better.
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Find State Discount Programs
Some states, like Colorado, offer safety certification programs that cut small business premiums up to 10% when you demonstrate workplace safety commitment. Small businesses earn 10% to 40% discounts in Washington by maintaining injury-free workplaces for three years.
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Shop Multiple Carriers
Get quotes from at least three insurers since they evaluate small business risks differently and may offer varying rates for your industry. Compare identical coverage levels rather than just premiums to ensure you get financial protection that fits your business size and employee count.
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Consider Deductible and Payment Options
Higher deductibles can reduce your premium, but choose an amount you can handle if multiple employees get injured in one year. Pay-as-you-go programs help small businesses manage cash flow by spreading costs throughout the policy period instead of large upfront payments.
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Bundle for Additional Savings
Bundling workers' comp with your general liability or commercial property coverage often provides multi-policy discounts that add up quickly for small businesses. Choose insurers experienced with businesses your size since they better understand your claims handling needs and won't unnecessarily inflate future premiums.
How to Choose the Right Workers’ Comp Policy
Selecting the right workers' comp policy goes beyond comparing premiums. Use this checklist when reviewing insurers to ensure you get coverage that protects your small business.
Industry Experience Verification
Find out if the insurer works with businesses like yours and understands your workplace risks. Some insurers have eligibility requirements, such as years in business, preferred classifications or minimum premium size, that prevent them from providing quotes to all employers. Ask how many businesses in your industry they insure and what safety resources they offer.
Financial Stability Check
Check the insurer's financial rating through organizations such as AM Best, Standard & Poor's, Fitch, Moody's and Weiss Ratings to ensure they can pay claims when needed. Look for A- ratings or higher since you need an insurer that handles claims promptly without financial stress affecting service.
Policy Feature Comparison
Compare coverage beyond basic benefits. Make sure the policy includes both workers' compensation (Part One) and employers' liability coverage (Part Two), as this combination provides broader protection against workplace injury claims. Ask about safety consulting or return-to-work programs that can reduce future premiums.
Exclusions Review.
Understand which workers are excluded and how the insurer defines "employee" under their policy terms. Pay attention to gaps affecting contractors, seasonal workers or part-time employees, since workers' comp exclusions could leave you personally liable for injuries.
Service Evaluation
Research how quickly they process claims and how responsive their customer service team is to small business needs. Your state insurance department maintains complaint records and financial information about insurers that can help you evaluate their reliability. Find out if they have medical providers near you and whether you can report claims outside regular business hours.
Other Business Insurance to Consider by Industry
Workers' comp protects your employees, but other risks can threaten your business operations and assets. We analyzed industry-specific insurance needs to help you understand other types of coverage your business requires beyond workers' compensation.
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Professional liability (malpractice). Covers treatment errors, misdiagnosis and negligent acts that could result in patient harm lawsuits against your practice. Cyber liability. Protects your patient data from breaches and ensures HIPAA compliance since you handle sensitive personal health information. Business interruption. It covers your lost income when equipment failures or other covered events force you to close temporarily. | |
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General liability. Covers customer injuries in your store, like slip-and-falls or injuries from falling merchandise displays. Commercial property. Protects your inventory, fixtures and equipment from theft, fire, vandalism and natural disasters. Business interruption. Covers your lost sales and ongoing expenses when covered events like fires or storms force temporary closure. | |
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Best Workers’ Comp Insurance: Bottom Line
The Hartford, NEXT Insurance and Simply Business offer the best workers' comp coverage for small businesses. The right choice comes down to your industry, your business size and what you can afford. To get the best rates, figure out what coverage your business structure requires, get quotes from several insurers and look for discounts through bundling and safety programs.
Best Workers’ Comp Insurance for Small Business: FAQ
Small business owners have questions about workers' comp insurance requirements, costs and coverage options. Here are the frequently asked questions about finding the best workers' comp insurance:
How much does workers' comp insurance cost for a small business?
Most small businesses pay $69 to $74 monthly for workers' comp insurance. NEXT offers the lowest rate at $69 monthly, while the industry average is $74. Your actual cost depends on your industry classification, payroll size and claims history.
Do I need workers' comp insurance if I'm a sole proprietor with no employees?
You don't need workers' comp as a sole proprietor without employees. However, once you hire anyone (including family or part-time help), you're required to get coverage. If you're in construction in states like Colorado, you must formally reject coverage if you don't want it.
Which workers' comp insurance company is best for small businesses?
NEXT and The Hartford both earned top MoneyGeek scores of 4.58 out of 5. Simply Business ranks third with a 4.50 score and a competitive $71 monthly rate.
What coverage limits do I need for workers' comp insurance?
Construction businesses need higher limits (more than $2 million per occurrence, more than $5 million aggregate) while office-based businesses can use lower limits ($500,000 to $1 million per occurrence). Restaurant and retail businesses typically need standard limits ($1 million per occurrence, $2 million aggregate). Your industry risk level determines appropriate coverage amounts.
Can I get workers' comp insurance if I only have contractors?
Contractors handle their own coverage, but hiring them creates risk if they're actually employees under the law. The Department of Labor has recovered over $41 million since 2021 for misclassified workers. It matters whether they're economically dependent on your business, not just signed agreements.
How can I reduce my workers' comp insurance costs?
You can reduce costs through state safety programs (up to 10% in Colorado), bundling policies and maintaining injury-free workplaces (10% to 40% discounts in Washington). Shop multiple carriers since they evaluate risks differently, and consider higher deductibles if you can handle potential out-of-pocket costs.
What industries need workers' comp insurance the most?
If you're in construction or trades, you face the highest risk, with 64.4% of fatal falls occurring from heights between six and 30 feet. Health care, manufacturing, and restaurant businesses also face significant workplace injury risks requiring comprehensive coverage. Office-based businesses have lower risk levels but still need basic financial protection.
How We Determined the Best Workers’ Comp Insurance Companies
We got thousands of workers' compensation insurance quotes from 79 industries using a two-employee business with $300,000 annual revenue and $150,000 payroll. We set coverage at $1 million per occurrence and $2 million aggregate limits.
How We Score Companies
- Affordability (50%): We compared what you'd actually pay since bundling different policies affects your total bill.
- Customer Experience (30%): We checked J.D. Power scores, state complaint files, and agent feedback to see which companies help the fastest when you file claims.
- Coverage Options (15%): We checked what protection each company offers because different businesses face different risks.
- Financial Strength (5%): We reviewed AM Best and Moody's ratings so you know these companies can pay when you need them.
You can see how rates and service compare for businesses of your size.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
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- U.S. Department of Labor. "Making an Impact for Misclassified Workers." Accessed September 8, 2025.
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