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 sets workers' comp rates through the Pennsylvania Compensation Rating Bureau instead of using the National Council on Compensation Insurance like most states. PCRB updates class code rates annually. Insurers can adjust filed rates up or down by 25%, creating significant rate differences between carriers for identical businesses. Quotes may vary by 50% or more for the same coverage. This variation rewards businesses with strong safety records and solid management practices, making it essential to compare multiple insurers in Pennsylvania.

Pennsylvania overhauled its Experience Rating Plan in April 2024, changing how claims history affects premiums. The state lowered the threshold for receiving an Experience Modification Factor from $10,000 to $5,000 in base premium over three years. More small businesses now qualify for Emod adjustments. Clean claims records translate into lower rates. Pennsylvania also introduced variable split points ranging from $10,000 to $300,000 based on payroll and class codes. Smaller businesses get lower split points, capping how much one serious claim can damage rates. A small operation might see claims capped at $10,000 in the calculation, while larger employers face caps up to $300,000.

Pennsylvania created the State Workers' Insurance Fund in 1915 to guarantee coverage for businesses that private insurers turn down. SWIF accepts startups without claims history, high-risk operations and companies with poor loss records. SWIF charges more due to mandatory add-ons: a $0.08 per $100 payroll terrorism endorsement, $0.04 per $100 for commercial catastrophe coverage and a 2.22% assessment fee. SWIF charges add approximately 2.34% to premiums compared to private insurance. SWIF serves as a fallback option when businesses need coverage to stay legally compliant and operational. Businesses with good safety records will find better rates in the private market.

Pennsylvania offers a 5% premium discount when businesses establish a PCRB-certified workplace safety committee. This discount program has delivered results since 1994, with more than 13,000 certified committees saving employers over $875.9 million in premiums. Businesses save $500 annually on a $10,000 premium, and the discount stacks with other rate reductions. Setting up a certified committee requires representatives from both the employer and the employee, as well as annual training and regular safety meetings. Submit certification applications between 90 and 30 days before policy renewal dates. The requirements are straightforward, and the 5% savings continue year after year as long as businesses maintain certification.

Pennsylvania approved a 3.33% loss cost reduction for 2025, marking the seventh consecutive year of rate decreases. Loss costs form the foundation insurers use to calculate premiums. When loss costs drop, rates follow. The steady decline reflects better workplace safety across Pennsylvania and improved claims management. Businesses see these savings automatically at renewal without taking action. A business with $100,000 in payroll at a $3 per $100 rate saves approximately $100 from this year's reduction alone. Seven years of cuts mean Pennsylvania businesses pay less in 2025 than in 2018 for equivalent 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.