The Hartford leads Alabama's workers' comp insurance market, having excellent coverage options and customer service. NEXT follows behind, while Simply Business rounds out the top choices for Alabama business owners.
Workers' Comp Insurance in Alabama
The Hartford is the top workers' compensation insurance provider in Alabama, with a 4.6 out of 5 overall score.
Compare top Alabama workers' comp insurance providers and find your ideal coverage.
Select your industry
Select state
Updated: September 10, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford, NEXT and Simply Business stand out as Alabama's top-rated workers' compensation insurance providers.
Your business type, number of workers, past insurance claims and available budget will point you toward the right workers' comp provider in Alabama.
To find the best workers' comp coverage in Alabama, start by collecting quotes, checking each provider's business expertise and reviewing its history of handling claims.
Best Workers' Comp Insurance Companies in Alabama
| The Hartford | 4.60 | 1 |
| NEXT | 4.59 | 2 |
| Simply Business | 4.51 | 3 |
| Coverdash | 4.44 | 4 |
| biBERK | 4.42 | 5 |
| Nationwide | 4.42 | 5 |
| Progressive Commercial | 4.38 | 6 |
| Hiscox | 4.36 | 7 |
| Thimble | 4.35 | 8 |
| Chubb | 4.26 | 9 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Select your industry
Select state
LEARN MORE ABOUT BUSINESS INSURANCE IN ALABAMA
Your company might need extra coverage. Here are resources to help you understand your options and explore other types of coverage:
- General Liability Insurance in Alabama
- Professional Liability Insurance in Alabama
- Employers' Liability vs. Workers' Comp
- How to Get Workers' Compensation Insurance
Learn more about protecting your business by exploring these other types of coverage options.
Best Alabama Workers’ Comp Insurance Reviews
The Hartford and NEXT emerge as the premier workers' compensation insurance providers for Alabama businesses.
The Hartford
Best Overall Provider
MoneyGeek Rating
4.6/ 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average monthly premium
$68Based on average costs for small businesses in AlabamaOur survey: Claims process
4.5/5Based on our annual survey of business insurance customersOur survey: Recommend to others
4.5/5Based on likelihood to recommend to other businesses
NEXT
Best for Customer Service
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average monthly premium
$67Based on our analysis of Alabama workers' compensation ratesOur survey: Claims process
3.9/5Score based on customer satisfaction with claims handlingOur survey: Recommend to others
4.8/5Percentage of customers who would recommend NEXT
Cheapest Workers' Comp Insurance Companies in Alabama
Alabama businesses can find the most affordable workers' comp coverage through NEXT for $67 monthly ($809 annually). The Hartford and Thimble provide competitive alternatives at $68 and $69 per month, respectively. The table below shows costs from all companies we analyzed:
| NEXT | $67 | $809 |
| The Hartford | $68 | $819 |
| Thimble | $69 | $825 |
| Progressive Commercial | $70 | $838 |
| Simply Business | $70 | $840 |
| Hiscox | $70 | $840 |
| Coverdash | $71 | $857 |
| biBERK | $74 | $884 |
| Nationwide | $79 | $954 |
| Chubb | $83 | $999 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Your actual premium depends on where your business is located, what industry you're in, how many employees you have, and other factors insurers consider.
Average Cost of Workers’ Comp Insurance in Alabama
Workers' compensation insurance in Alabama costs businesses an average of $72 monthly or $866 annually, running slightly below the national average of $74 per month. The Alabama's rates give local businesses a small advantage in operating costs. Your specific premium depends on your industry's risk level, number of employees, annual payroll and claims history.
Average Cost of Workers' Comp in Alabama by Industry
In Alabama, workers' compensation insurance costs vary by industry risk level. Speech therapists pay the lowest premiums at $6 per month, while roofing companies face the highest rates at $816 monthly. This substantial difference reflects the varying workplace injury risks across different professions.
| Accountants | $20 | $241 |
| Ad Agency | $16 | $187 |
| Auto Repair | $150 | $1,795 |
| Automotive | $115 | $1,381 |
| Bakery | $53 | $633 |
| Barber | $14 | $166 |
| Beauty Salon | $14 | $173 |
| Bounce House | $40 | $474 |
| Candle | $39 | $474 |
| Cannabis | $83 | $999 |
| Catering | $72 | $866 |
| Cleaning | $48 | $575 |
| Coffee Shop | $46 | $549 |
| Computer Programming | $28 | $333 |
| Computer Repair | $24 | $284 |
| Construction | $178 | $2,131 |
| Consulting | $29 | $353 |
| Contractor | $163 | $1,955 |
| Courier | $223 | $2,675 |
| DJ | $14 | $163 |
| Daycare | $13 | $158 |
| Dental | $11 | $132 |
| Dog Grooming | $64 | $764 |
| Drone | $26 | $314 |
| Ecommerce | $21 | $257 |
| Electrical | $56 | $677 |
| Engineering | $37 | $449 |
| Excavation | $105 | $1,262 |
| Florist | $61 | $726 |
| Food | $41 | $495 |
| Food Truck | $45 | $539 |
| Funeral Home | $26 | $317 |
| Gardening | $46 | $550 |
| HVAC | $62 | $746 |
| Handyman | $91 | $1,097 |
| Home-based | $10 | $120 |
| Hospitality | $68 | $815 |
| Janitorial | $48 | $571 |
| Jewelry | $30 | $355 |
| Junk Removal | $138 | $1,662 |
| Lawn/Landscaping | $37 | $443 |
| Lawyers | $51 | $613 |
| Manufacturing | $58 | $692 |
| Marine | $148 | $1,773 |
| Massage | $14 | $173 |
| Mortgage Broker | $14 | $164 |
| Moving | $256 | $3,069 |
| Nonprofit | $31 | $372 |
| Painting | $137 | $1,640 |
| Party Rental | $36 | $434 |
| Personal Training | $25 | $296 |
| Pest Control | $69 | $827 |
| Pet | $30 | $363 |
| Pharmacy | $6 | $74 |
| Photography | $17 | $202 |
| Physical Therapy | $7 | $81 |
| Plumbing | $63 | $756 |
| Pressure Washing | $83 | $999 |
| Real Estate | $29 | $353 |
| Restaurant | $62 | $743 |
| Retail | $35 | $416 |
| Roofing | $816 | $9,793 |
| Security | $51 | $615 |
| Snack Bars | $43 | $519 |
| Software | $26 | $311 |
| Spa/Wellness | $17 | $206 |
| Speech Therapist | $6 | $71 |
| Startup | $13 | $155 |
| Tech/IT | $27 | $318 |
| Transportation | $225 | $2,705 |
| Travel | $7 | $82 |
| Tree Service | $218 | $2,620 |
| Trucking | $265 | $3,175 |
| Tutoring | $10 | $119 |
| Veterinary | $19 | $230 |
| Wedding Planning | $28 | $337 |
| Welding | $115 | $1,376 |
| Wholesale | $40 | $479 |
| Window Cleaning | $203 | $2,439 |
How Much Workers' Comp Insurance Do I Need in Alabama?
Businesses with five or more employees in Alabama must carry workers' compensation insurance. This coverage pays medical expenses and lost wages if workers get injured or sick due to their job.
Employers who fail to provide required coverage face fines up to $1,000 per employee for each day without insurance. They can also be charged with a Class C misdemeanor.
Sole proprietors
Business owners who work independently can choose to opt out of workers' comp coverage for themselves while still maintaining it for any employees
Corporate officers
Executive officers owning at least 25% of company stock can file for exemption if they maintain separate health insurance coverage
Real estate agents
Licensed real estate professionals working on commission are typically classified as independent contractors and exempt from mandatory coverage
Domestic workers
Household employees working fewer than 40 hours per week or earning less than $750 per quarter may be exempt from coverage requirements
Agricultural workers
Small farms with fewer than five regular employees or seasonal workers may qualify for exemption from workers' comp requirements
Remote workers
Telecommuting employees working exclusively from home in another state may be exempt if covered under that state's workers' comp system
Professional athletes
Athletes in certain professional sports leagues often have separate injury coverage agreements that exempt them from standard workers' comp requirements
Religious organizations
Members of religious orders performing duties for their organization may be exempt when the order provides alternative medical coverage
How to Get the Best Workers' Comp Insurance in Alabama
There are ways to keep your business insurance costs in check. Compare rates, coverage details and claims handling from multiple providers to find the best choice for your business.
- 1
Check coverage requirements
Alabama law requires businesses with five or more employees to carry workers' compensation insurance.
- 2
Collect business details
Prepare accurate payroll records, employee counts, and job classifications before requesting quotes.
- 3
Get multiple insurance quotes
Contact at least three different insurance carriers for quotes. Premium rates in Alabama can vary between providers for the same coverage level.
- 4
Find industry-specific coverage
Select insurers who understand your industry's risks in Alabama. This helps you get the needed coverage.
- 5
Compare provider services
Review each insurer's claim processing times and complaint history. You should also look for extra benefits like workplace safety programs and injury prevention resources.
- 6
Review policy details
You should examine coverage limits and exclusions. Consider pay-as-you-go structures.
- 7
Schedule annual reviews
Changes in payroll, number of employees or business operations can affect your premium and coverage needs, so review your policy each year.
Alabama Workers’ Comp: Bottom Line
There are several strong workers' compensation insurance providers in the state. The Hartford, NEXT and Simply Business are the leading carriers in Alabama.
Alabama Workers' Comp Insurance: FAQ
We provide answers to the most common questions about workers' comp coverage and costs in Alabama.
Is workers' comp insurance required for all Alabama businesses?
Yes, Alabama requires workers' compensation insurance for businesses with five or more employees. Exempt groups include independent contractors, domestic workers, farm laborers and corporate officers who own 25% or more company shares. Noncompliant employers face fines up to $1,000 per employee and potential misdemeanor charges with up to one year in jail.
How much does workers' comp insurance cost in Alabama?
NEXT offers the lowest-priced workers' comp insurance in Alabama at $67 per month ($809 annually). Your actual premium costs will vary based on your industry risk level, number of employees, payroll, and claims history.
What does workers' comp insurance cover in Alabama?
Alabama workers' comp insurance covers medical expenses and lost wages for work-related injuries or illnesses. Benefits include necessary treatments, rehabilitation and partial wage replacement during recovery.
Which workers' comp insurance company is best in Alabama?
The Hartford leads Alabama's workers' comp providers with a 4.6 overall score, excelling in comprehensive coverage. NEXT follows at 4.59, featuring top-rated customer service, while Simply Business (4.51) offers the most extensive coverage choices.
What happens if I don't have workers' comp insurance in Alabama?
In Alabama, operating without workers' compensation insurance when legally required can result in fines up to $1,000 per employee and possible criminal charges. Employers must also pay injured workers' medical costs and lost wages directly. The Alabama Department of Labor enforces compliance.
Do sole proprietors need workers' comp insurance in Alabama?
Sole proprietors in Alabama are exempt from mandatory workers' compensation insurance. But, those in high-risk industries like construction or roofing must carry coverage.
How do I choose the right workers' comp insurance company in Alabama?
Get quotes from at least three Alabama workers' compensation insurance providers. Look for carriers with experience in your specific industry sector and strong financial ratings.
How We Scored the Best Workers' Comp Insurance Companies in Alabama
- Affordability (50%): Cost drives every small business insurance decision in Alabama's expensive market. We compared monthly premiums across all companies, since even comprehensive policies won't help if you can't afford them.
- Customer experience (30%): When your employee gets hurt, you'll need an insurer that handles claims quickly and treats injured workers fairly. We used J.D. Power ratings, Alabama Department of Insurance complaint data and independent reviews.
- Coverage options (15%): We evaluated each company's policy flexibility, add-on options and coverage limitations for specific Alabama industries and regulatory requirements.
- Financial strength (5%): Premium savings don't matter if your insurer struggles financially. We checked AM Best ratings to ensure recommended carriers can deliver on their promises.
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.