Best Workers' Comp Insurance in Pennsylvania

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.

These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.

Pennsylvania doesn't use the National Council on Compensation Insurance like most states. Instead, the Pennsylvania Compensation Rating Bureau sets workers' comp rates and updates class code rates each year. Here's where it gets interesting: insurers can adjust these rates up or down by 25%. That flexibility means the same business might get quotes that differ by 50% or more. Strong safety records and good management pay off here, so get quotes from several insurers.

Pennsylvania changed its Experience Rating Plan in April 2024. The state cut the threshold for an Experience Modification Factor from $10,000 to $5,000 in base premium over three years. More small businesses now qualify for Emod adjustments. A clean claims record lowers your rates. Pennsylvania also brought in variable split points between $10,000 and $300,000 based on payroll and class codes. Smaller businesses benefit from lower split points, which limits how much one serious claim can spike their rates. Small operations might see claims capped at $10,000, while larger employers deal with caps up to $300,000.

Can't get private insurance? Pennsylvania has you covered. The State Workers' Insurance Fund started in 1915 to help businesses that private insurers won't touch (startups without claims history, high-risk operations, companies with bad loss records). SWIF costs more though. You'll pay a $0.08 per $100 payroll terrorism endorsement, $0.04 per $100 for commercial catastrophe coverage, and a 2.22% assessment fee. That adds about 2.34% to what you'd pay for private insurance. SWIF keeps you legal and operational when you need it. But if your safety record is good, shop the private market first.

Set up a PCRB-certified workplace safety committee and Pennsylvania knocks 5% off your premium. Since 1994, over 13,000 certified committees have saved employers more than $875.9 million. On a $10,000 premium, that's $500 back each year. Plus, this discount stacks with others. You need representatives from management and employees, annual training, and regular safety meetings. Apply 30 to 90 days before your policy renews. The process is simple, and the 5% savings keep coming as long as you stay certified.

Pennsylvania cut loss costs by 3.33% for 2025. That's seven years in a row of decreases. Loss costs are the baseline insurers use for premiums, so when they drop, your rates drop. Better workplace safety and smarter claims management across the state made this happen. You don't need to do anything. These savings show up at renewal. A business with $100,000 in payroll at a $3 per $100 rate saves about $100 this year alone. Seven years of cuts add up. Pennsylvania businesses pay less now than they did in 2018 for the same coverage.

Pennsylvania requires all overtime wages when calculating workers' comp premiums, unlike some states that exclude overtime from calculations. Employees' total earnings (regular pay plus overtime) generate premium charges during annual audits. Consider a scenario where 10 employees each earn $10,000 in overtime and the rate is $2 per $100 of payroll. That overtime adds $2,000 to annual premiums. Construction, manufacturing, and hospitality businesses with heavy overtime usage often face larger audit bills than those in states with overtime exclusion. Accurate payroll estimates become critical to avoid unexpected charges when policy audits happen.

Pennsylvania rewards financially strong businesses that self-insure with security discounts up to 75% based on credit ratings from nationally recognized statistical rating organizations. Self-insured employers must post security through letters of credit, surety bonds or trust funds to cover potential claim liabilities. The 75% discount for businesses with excellent credit ratings (A or higher) reduces the capital needed for security requirements. This generous discount makes self-insurance practical for smaller Pennsylvania businesses than in other states. Companies paying $50,000 or more annually in premiums with solid balance sheets can potentially cut total costs by 15% to 30% through self-insurance.