Best Workers' Compensation Insurance in Alabama (2024)

MoneyGeek analyzed Alabama insurers based on their average premiums, customer satisfaction, financial stability and ease of online quote applications to determine the state’s best workers’ compensation insurance provider. The Hartford beat out its competitors by scoring excellently in all categories.

Alabama requires most small business owners to carry workers' compensation insurance. This coverage can protect you and your employees from financial and legal repercussions. Workers' compensation insurance can pay for medical costs, lost wages and potential lawsuits if an employee suffers a work-related illness or accident.

MoneyGeek ranked The Hartford as Alabama’s best workers' compensation insurance carrier due to its solid financial stability and excellent customer service. Its average monthly rate is $153, though your rate will depend on your company’s size, payroll expenses and industry sector.

With rates starting at about $108 per month for businesses with 20 employees and an annual payroll expense of $1,250,000, Pie provides the most affordable workers' compensation insurance in Alabama. This company is your best option if you prioritize affordability above all else.

We examined workers’ compensation insurance companies based on average monthly costs to find the cheapest insurers, although the best provider for your small business [may differ depending on other factors] (#factors-that-impact-workers-comp).

The average monthly and annual premiums for each Alabama insurer we examined for a company with 20 employees are available in the table below.

The Hartford is Alabama’s top workers' compensation insurance provider for businesses with five employees. It costs $57 per month on average.

Your employee count influences your workers' compensation insurance rate, although payroll is typically the most relevant factor. We gathered quotes from businesses with five employees and annual payroll costs of $312,500 to determine the state’s best workers' compensation for micro businesses (businesses with fewer than 10 employees).

Pie provides Alabama’s best workers' compensation insurance for midsize companies. For companies with about 100 employees and a $6,250,000 annual payroll, the average monthly premium is $377.

Payroll is typically the most significant factor in workers' compensation rates, although insurers will also consider your number of employees.

In Alabama, companies with 20 employees pay about $154 per month for workers' compensation insurance, which is less than the national average of $168 per month. For our research, we applied the following sample policy limits:

• $1 million total policy limit
• $1 million per accident limit
• $1 million per employee limit

These limits mean that the insurer will pay up to $1 million for each specific accident and a maximum of $1 million for each employee, subject to the $1 million policy period limit.

The annual payroll expenses and employee count influence workers' compensation insurance rates. The impact of employee count on Alabama's workers' compensation costs is depicted in the table below, showing the average cost of insurance for companies with five, 20 and 100 employees.

Workers' compensation insurance premiums vary significantly between businesses. Several factors affect rates for a workers’ compensation policy, including the size of the workforce, employee class code, payroll costs, state legislation and claims history.

The law mandates that businesses with five or more employees obtain workers' compensation insurance. This requirement exempts domestic employees, farm laborers and casual employees. Officers of a corporation, members of an LLC and all other full- or part-time workers are considered employees.

Even if you are exempt, Alabama workers' compensation insurance is essential to secure your company’s financial future. By opting out of workers’ compensation insurance, you agree to bear full financial responsibility for any work-related injuries, including medical expenses. Hurt workers can also initiate a lawsuit, which could be much more expensive than an average monthly insurance premium.

Workers' compensation insurance guarantees that injured workers receive medical care and compensation for some of the income they lose while unable to work. It also typically protects employers, the policyholders for this type of insurance, from lawsuits brought by workers injured at work.

Workers' compensation insurance can assist individuals in keeping their jobs if they cannot work due to a sickness or injury that occurred at work. To facilitate a speedy return to work, injured employees may also have access to rehabilitation programs that include physical treatment and career training. Dependents of a deceased employee may get death benefits through workers' compensation insurance.

Alabama workers can submit insurance claims and request assistance at the Alabama Workers' Compensation Division.

According to Alabama Code 25-5-78, employees who need workers' compensation benefits must first tell their employers in writing of their job injuries within five days of the incident. Your employer must submit a First Report of Injury Form or WCC Form 2 after you make your report. The insurance company can start looking into your claim after it gets the WCC Form 2. Your claim will either be accepted or rejected upon the conclusion of the investigation.

Unlike most states, Alabama does not have a court system available to hear workers' compensation cases. Instead, you can approach the Alabama district court with a lawsuit or work with the Ombudsman to try and settle the issue.

The best workers' compensation insurance for you will depend on your company’s particular needs. Here are some frequently asked questions about Alabama’s top workers' compensation insurance providers.