The Hartford and NEXT tie for the best workers' comp insurance for small businesses, earning MoneyGeek scores of 4.58 out of 5 due to their strong combination of affordability and customer service. Our analysis of top workers' compensation insurance companies also found Simply Business, Coverdash and Progressive Commercial are excellent choices for small businesses.
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.
Get quotes from NEXT, The Hartford and other top workers' comp insurance providers below.
Select your industry
Updated: August 13, 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.
Verify state requirements, ensure correct classification codes and compare quotes from at least three carriers to find the best deal.
Best Workers’ Comp Insurance Companies
| The Hartford | 4.58 |
| NEXT | 4.58 |
| Simply Business | 4.50 |
| Coverdash | 4.47 |
| Progressive Commercial | 4.46 |
| Thimble | 4.45 |
| biBERK | 4.44 |
| Hiscox | 4.42 |
| Nationwide | 4.39 |
| Chubb | 4.21 |
LEARN MORE ABOUT WORKERS’ COMP INSURANCE
Check out these guides to find the best workers' comp insurance for small businesses:
Best Workers’ Comp Insurance Companies by State
Our analysis found NEXT has the best workers' comp insurance for small businesses across 33 states, with The Hartford leading in 13 states.
| 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 |
We analyzed 46 states where you can buy private workers' comp insurance. Four states (Ohio, North Dakota, Washington and Wyoming) only offer state-run coverage.
Best Workers’ Comp Insurance Review
To help you choose the best workers' compensation insurance, we've analyzed what makes our top providers stand out for different small business needs.
Best Overall: The Hartford
pros
Ranked first among carriers in MoneyGeek’s study
Second-highest score for customer service
Has competitive workers’ comp premiums
Over 200 years of experience in insurance
cons
Digital experience ranks last among providers analyzed
Not available in Hawaii and Alaska
COMPANY HIGHLIGHTS
The Hartford has been providing small businesses with financial protection since 1983. After 200+ years in business, it knows how to handle workers' compensation claims.
Its average monthly rate falls below the industry average, making it an affordable provider of workers' compensation insurance. You're also assured that your employees get their benefits if they're injured in the workplace. An A+ rating from AM Best speaks of The Hartford's financial strength.
Best for Customer Service: NEXT
pros
Ranked first in customer service
Top-rated digital experience and policy management
Most likely to be recommended by current policyholders to others
Available nationwide
Can have you covered in 10 minutes
cons
Has higher rates for workers' comp
Claims processing ranks lower than other carriers
COMPANY HIGHLIGHTS
NEXT is tied with Hartford as the best overall workers' compensation provider, but it stands out for its excellent customer service. While its $85 average monthly rate isn't the cheapest, you can expect a smooth digital experience.
Getting a quote and purchasing coverage only takes 10 minutes online, and you can access 24/7 chat support when you need help. Current policyholders say they will likely recommend it as a provider to others looking for coverage.
Best for Affordability: Progressive Commercial
pros
Most affordable workers' compensation rates nationwide
Strong financial stability with an A+ AM Best rating
Available in 49 states with online quotes
Offers a discount for bundling auto and business insurance
cons
Has the lowest customer service ratings among competitors
Digital experience is less satisfactory than other carriers
COMPANY HIGHLIGHTS
Progressive has extensive experience in commercial insurance, with over 50 years under its belt. We found it offers the most affordable workers' compensation rate at $71 per month among the companies we reviewed.
While their customer service leaves something to be desired, their A+ AM Best rating and 50+ years of commercial insurance experience ensure reliable claims payments. Cost-conscious business owners can bundle business insurance coverage with their auto insurance for additional savings.
How to Get the Best Workers’ Comp Insurance
Getting the best workers' comp insurance for small businesses requires understanding your industry risks and comparing multiple providers. Follow these steps to secure coverage that protects your employees and your budget.
- 1
Check your state requirements.
Every state has different rules for when you need workers' comp coverage. Most states require coverage with one employee, while Missouri requires it when you have five employees. In Texas and South Dakota, workers' compensation insurance is optional.
- 2
Assess your industry risks and coverage needs.
Different industries face varying levels of workplace hazards that affect premium and coverage requirements. For example, construction companies need higher limits than office-based businesses because workplace injuries tend to be more severe and costly.
- 3
Ensure you have the correct classification codes.
Your business type determines your premium rates through NCCI classification codes (industry risk categories that determine your rates). Make sure your insurer assigns the right codes for your actual work activities, as misclassification can lead to overpayment or audit penalties.
- 4
Research workers’ compensation insurance companies.
The best workers' comp insurance isn't always the cheapest. Evaluate insurers based on customer service ratings, claims processing speed, financial stability ratings from AM Best, and industry-specific experience for your business type.
- 5
Compare quotes from multiple carriers for the same coverage.
Rates can vary significantly between insurers for identical coverage. Getting quotes from traditional insurers, online providers and local agents helps you find the best rate.
- 6
Look for discount opportunities.
Ask about available discounts for safety programs, annual payments or pay-as-you-go options. Consider bundling with general liability and professional liability insurance for additional savings.
Once you get business insurance, focus on long-term cost management through workplace safety programs. Your experience modification rating (EMR) directly affects future premiums, so maintaining a strong safety record will reduce renewal costs.
Get your Certificate of Insurance immediately after purchasing. Many businesses need these certificates to work with clients, secure contracts, or meet vendor requirements.
Best Workers’ Comp Insurance: Bottom Line
The Hartford, NEXT and Simply Business top our list of providers for the best workers' comp insurance for small businesses, but your best choice depends on your industry, business size and budget.
Before shopping around, check what your state requires and make sure you're getting quotes for the right classification codes. Comparing rates from several carriers helps you find the best deal.
Best Workers’ Comp Insurance for Small Business: FAQ
We provided insights to frequently asked questions about the best workers' comp insurance for small businesses:
How much does workers' comp insurance cost for small businesses?
Progressive Commercial offers the cheapest workers' comp at $71 monthly. However, your actual cost will vary based on your industry. For example, workers' comp insurance for construction companies costs more than office-based businesses because the injury risks are higher.
Which states require workers' compensation insurance?
Almost every state requires workers' comp coverage once you hire your first employee. For Missouri, you don't need it until you have five employees. Workers' comp insurance is optional in Texas and South Dakota, and some business owners may qualify for workers' compensation insurance exemptions in other states.
Skipping coverage where it's required can result in hefty penalties. State requirements can change, so check with your state's department of insurance for current requirements.
What makes The Hartford and NEXT the best choices?
Both companies earned identical 4.58 MoneyGeek scores, but excel in different areas. The Hartford brings over 200 years of experience with competitive rates. NEXT has excellent customer service and can cover you in 10 minutes, though its $85 monthly rate is higher than other providers'.
How do different industries affect workers' comp rates?
Your industry classification code determines your rate, and some jobs are riskier than others. Construction workers face more workplace dangers than office employees, so they pay more. Make sure your insurer assigns the correct code for your actual work to avoid overpayment or audit headaches.
What should I look for when comparing workers' comp providers?
Price is important, but you'll also want to check customer service ratings, how quickly they process claims, and their AM Best financial rating. A cheap policy from a financially unstable company isn't worth the stress when you need to file a claim.
How quickly can I get workers' comp coverage?
NEXT can cover you in 10 minutes through their online process. Traditional insurers typically take several days to process applications. To speed things up, have your business information, employee details and industry classification ready before you start the application.
Can I bundle workers' comp with other business insurance?
Yes, and bundling is often a smart financial move. For better rates, you can combine workers' comp with other types of business insurance. The savings from bundling multiple policies can add up quickly, so ask every provider about their multi-policy discounts when you're comparing quotes.
What happens if I don't have workers' comp insurance?
Skipping required workers' comp coverage puts your business at serious risk. You'll face hefty state fines, potential lawsuits and even business closure. Without coverage, you become personally liable for employee injuries.
How do I determine the right coverage amount?
Your coverage needs depend on your industry's risk level and state requirements. Construction companies usually need higher limits than office-based businesses because workplace injuries are more severe and expensive. Your insurer will help determine appropriate limits based on your classification codes, payroll size and claims history.
What factors affect my workers' comp premium rates?
Your industry classification, payroll size, claims history and location affect your premium. Your experience modification rating (EMR) is critical because businesses with good safety records get lower rates.
How do state-run vs. private workers' comp programs differ?
Four states (Ohio, North Dakota, Washington and Wyoming) only offer state-run workers' comp programs with standardized rates and coverage. Private insurers compete for your business in other states, which often means more competitive pricing.
What's the difference between workers' comp and general liability insurance?
Workers' comp pays for your employees' medical expenses when they sustain injuries at work, plus lost wages. General liability protects your business from customer injuries and property damage claims.
How We Determined the Best Workers’ Comp Insurance Companies
We gathered thousands of quotes for workers' compensation insurance from 79 industries. Our research used a two-employee business with $300,000 annual revenue and $150,000 payroll, which reflects many small businesses navigating growth while managing costs.
Coverage included $1 million per claim and $2 million aggregate limits, which most businesses need for solid financial protection without overpaying.
Our Scoring Model
- Affordability (50%): Your bottom line drives every business decision. We compared each company's rates across all four insurance types because bundling can significantly impact your total insurance spend.
- Customer Experience (30%): When dealing with a claim, responsive service is essential for getting back to business. We used J.D. Power ratings, National Association of Insurance Commissioners complaint data and independent agency ratings.
- Coverage Options (15%): Every business faces unique risks. We assessed coverage breadth, policy limits and customization options because standardized policies don't fit.
- Financial Strength (5%): Great rates don't help if companies can't pay claims. We evaluated stability using AM Best and Moody's ratings to ensure your coverage is available when needed.
By testing identical business profiles, you can see how rates and services compare for businesses like yours.
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.
sources
- AM Best. "AM Best Affirms Credit Ratings of The Progressive Corporation and Its Subsidiaries." Accessed July 15, 2025.