MoneyGeek identified the top providers of workers' compensation insurance in Louisiana by evaluating affordability, financial stability, customer satisfaction scores and the time it takes to obtain a quote online. Based on the findings, Thimble offers the best coverage.
Workers’ comp insurance in Louisiana minimizes liability costs for small business owners by covering employee-related injuries, ongoing care and lost wages and death benefits, among others.
Best Workers’ Compensation Insurance in Louisiana
Best Workers’ Compensation Insurance in Louisiana
We ranked Thimble as the overall best workers’ comp insurance provider in Louisiana, with a MoneyGeek score of 94 out of 100. The company’s policies cost an average of $161 per month, although actual rates may vary due to several factors, including the business size, number of employees and industry of operation.
How was this MoneyGeek score calculated?
- The lowest average monthly cost of $161
- High financial stability rating from AM Best
- Reasonably fast quotes
Thimble tops our list of the best overall workers' compensation insurance carriers in Louisiana for various reasons. The company’s average monthly rate of $161 is the lowest in the state compared to its competitors. Moreover, a financial stability rating of A implies that the company does okay in terms of paying out claims.
Getting a quote from Thimble's website takes about one minute and 40 seconds, only a few seconds longer than other competitors.
However, the insurer's complaint ratio is the highest among profiled companies, meaning the insurer is less likely to handle and respond to customer concerns well.
- Affordable rates of $207 per month
- A++ financial stability rating is the highest among all insurers
- Quick quotes
biBERK is our runner-up for workers’ comp insurance in Louisiana. The company offers the second-lowest average monthly cost of $207, which is average compared to other insurers in our ranking system.
An exceptional financial stability rating of A++ from AM Best makes biBERK the best go-to provider for potential customers interested in a trustworthy option. The company also receives fewer customer complaints than Thimble but more than other competitors. The quote process is the second fastest at one minute and 18 seconds.
- Coverage costs about $253 per month
- Offers exceptional customer satisfaction
- The quote process is the shortest compared to its competitors
- Rates well for financial stability
The Hartford provides reliable products and services to small businesses, including workers’ compensation insurance. In Louisiana, the company ranks third in our scoring system.
Despite charging the highest monthly cost of $253, The Hartford offers the fastest online quote processing time to its customers. It will take you an average of one minute and 12 seconds to obtain a cost estimate through the insurer’s website. Importantly, The Hartford also has a reputation for receiving the least customer complaints, implying its overall customer satisfaction compatibility.
- The average cost of coverage is $246 per month
- Receives very few customer complaints
- The online quote process takes slightly more than one minute
Workers' compensation insurance in Louisiana from Next costs about $246 per month, the second-highest compared to other top providers in the state. The company has a low customer complaint ratio, showing a likelihood of providing quality service and an exceptional customer experience. Next also allows you to generate online quotes within an average of one minute and 31 seconds.
Potential customers may need to note Next’s AM Best rating of A-, indicating low financial stability and the potential to fail in meeting its financial obligations on customer claims.
Cheapest Workers’ Compensation Insurance in Louisiana
The most affordable workers’ comp insurance in Louisiana is from Thimble, with coverage costing an average of $161 per month. The insurer has the lowest premium for businesses with $1,250,000 in annual payroll costs and 20 employees, but actual premiums will vary for different employee counts and payroll costs.
Thimble could be a suitable provider for businesses with limited financial resources. The company offers the lowest premium of about $161 per month, for businesses with only 20 employees and $1,250,000 in annual payroll costs. Rates will generally increase with increased payroll amounts and number of employees.
Thimble is ideal for business owners looking for a financially stable provider. With an A+ rating from AM Best, the insurer is not likely to fail in its financial obligations. One drawback is that the insurer has the highest number of complaints compared to other insurers in our study.
Although we rated workers’ insurance comp providers in this category based on the monthly premiums, the most affordable company for your business may vary depending on many other factors. The following table can help you compare monthly costs across different providers for a business with 20 employees in Louisiana.
Best Workers’ Compensation Insurance for Micro Businesses in Louisiana
For Louisiana micro businesses with an employee count of five and $312,500 as the annual payroll cost, biBERK outshines other workers’ compensation insurance providers in our scoring system. The insurer earned a MoneyGeek score of 97 out of 100, with an average monthly premium of $77.
Although the employee count influences workers' insurance costs, payroll costs impact the rates more. Micro businesses typically feature between one and nine employees.
biBERK offers the second-lowest monthly premium for micro businesses with five employees in Louisiana, costing approximately $77 per month. The insurer's excellent AM Best rating of A++ assures you of its capability to meet its financial obligations once you file a claim.
The insurer’s online quote process ensures you receive your cost estimates in approximately one minute and 18 seconds. biBERK excels in most areas and has an above-average complaint score, which indicates its good reputation for providing excellent customer satisfaction.
Best Workers’ Compensation Insurance for Midsize Businesses in Louisiana
Thimble is our top pick for the best workers’ compensation insurance in Louisiana if you run a midsize business with approximately 100 employees. Coverage from this insurer costs an average of $716 per month based on rates for a business with an annual payroll amount of $6,250,000.
Although the cost of workers’ compensation insurance fluctuates with the employee count, payroll generally has more influence in determining the monthly premiums.
Scoring 94 out of 100 in our analysis, Thimble excels in various aspects contributing to its top ranking for Louisiana’s midsize businesses with about 100 employees. Its average monthly cost of $716 is the lowest of the insurers we compared. The company has a strong rating from AM Best and is capable of compensating its customers financially promptly.
Thimble receives the highest number of customer complaints than other companies in our rating system, according to NAIC’s scores. It also has the longest online quote process, taking around a minute and 40 seconds.
How Much Is Workers’ Compensation Insurance in Louisiana?
The average monthly workers' compensation insurance premium for a business with 20 employees in Louisiana is $217. This average rate is slightly higher than the national monthly average of $168.
For this analysis, our sample policy limits were as follows:
- $1 million total policy limit
- $1 million per accident limit
- $1 million per employee limit
The total policy limit refers to the maximum amount the insurer covers within the policy period, which is $1 million for our sample profile. The same maximum amount applies to a single accident and each employee. Any costs above these limits get covered out-of-pocket.
Employee count and annual payroll costs are two of the primary factors that influence workers’ compensation insurance rates. The following table indicates how average premiums vary for businesses with five, 20 and 100 employees.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Louisiana
Workers’ compensation insurance rates differ for each business based on factors like the annual payroll costs, number of employees, employee class code and claim history.
Businesses get charged a specific rate for every $100 of payroll. The rate varies in each state based on the industry. As such, high payroll costs translate to more monthly costs for the business. In Louisiana, the average premium index rate in 2022 was $2.13 for each $100 of payroll, which is higher than most states.
Number of employees
Businesses with a larger employee count face a higher risk of injuries and other liabilities, resulting in increased workers’ compensation insurance premiums than those with fewer employees.
Employee class code
The class code represents the type of work an employee does. Some jobs involve more risk than others, resulting in higher costs for every $100 of payroll. For instance, premiums will be higher in the construction industry due to a high risk of injuries than in the consulting industry.
Insurers consider a business’ claim history when determining its workers' compensation coverage costs. If your business has a record of severe or frequent claims, you will pay higher premiums. Based on the U.S. Bureau of Labor Statistics (BLS), Louisiana recorded 23,700 nonfatal workplace illnesses and injuries in 2021 within private-industry businesses, significantly lower than the over 2.6 million cases at the national level in the same year.
Do You Need Workers’ Compensation Insurance in Louisiana?
Businesses with at least one employee require workers’ compensation insurance in Louisiana, with the exemption of the following:
- Certain private residences and private unincorporated farm employees
- Certain performers or musicians
- Employees who are covered by specific federal regulations
- Railroad employees and those in foreign or interstate commerce
- Employees engaged in spraying or dusting operations within airplanes
- Board directors and uncompensated officers for some non-profit organizations
Although your business may legally not require workers' compensation insurance, it is recommended that you purchase the coverage to ensure you are safeguarded from liabilities associated with workplace injuries.
Businesses can purchase coverage through the private market or via a state fund. Some employers in Louisiana may also become self-insurers if they have sufficient financing by formulating a self-insurance plan and submitting it to the Department of Insurance for review.
Louisiana employers who do not purchase workers’ compensation insurance can face various penalties, including:
- A fine of up to $250 for each employee for the initial violation.
- $500 for every employee for additional violations for a maximum of $10,000.
- The employer may get charged with a criminal violation for failing to offer workers’ compensation insurance or falsifying information about having the coverage to reduce premiums.
Those caught violating the law may receive an injunction barring them from conducting further business until proof of coverage is provided to the Office of Workers’ Compensation.
What Does Workers’ Compensation Insurance Cover in Louisiana?
Workers' compensation insurance in Louisiana provides various benefits to the business and employees by covering the following:
- Medical costs: If an employee becomes ill or gets injured while at work, workers’ compensation pays the medical expenses, including ambulance rides, treatment, surgery and prescription drugs.
- Lost wages: If an incident happens at work that makes employees incapable of working for weeks or months, this coverage may offer a parietal wage replacement during the recovery period.
- Ongoing care: Employees with injuries that need long-term care may have their workers’ comp cover the cost of ongoing care if they file a claim and it gets approved.
- Death benefits: If an employee passes away due to an incident at work, workers' compensation insurance may cover funeral costs and other death benefits.
Note that the employer is the policyholder for this type of insurance.
Workers’ Compensation Insurance Resources for Employees in Louisiana
The Louisiana Workforce Commission handles workers’ compensation activities for businesses in the state. Employers and employees may use the commission's website to find resources about their coverage, report injuries and file claims. You can use the following steps to file a claim through the commission's website:
- Click the enroll now link under LWCC Interactive
- Complete the enrolment process using your policy number and security code
- Finalize account setup to file your claim
Employees may also obtain guidance regarding the claims process from their employer.
Frequently Asked Questions About Workers’ Compensation Insurance in Louisiana
The best ideal workers' compensation insurance provider for your needs depends on various factors. Here are some answers to common questions about obtaining the best workers' compensation insurance in Louisiana.
About Melissa Wylie
- biBERK. "About biBERK." Accessed May 25, 2023.
- Louisiana Workforce Commission. "FAQ - Workers’ Compensation Coverage for Employers." Accessed May 25, 2023.
- Oregon Department of Consumer and Business Services. "Premium Index Rates." Accessed May 25, 2023.
- The Hartford. "Workers Compensation in Louisiana." Accessed May 25, 2023.
- Thimble. "About Us." Accessed May 25, 2023.
- U.S. Bureau Of Labor Statistics. "IIF Latest Numbers." Accessed May 25, 2023.
- U.S. Bureau Of Labor Statistics. "State Occupational Injuries, Illnesses, and Fatalities." Accessed May 25, 2023.