MoneyGeek conducted a comprehensive analysis of workers' compensation insurance providers in Pennsylvania, evaluating key factors such as affordability, customer satisfaction, financial stability and the online quote process. Nationwide emerged as the top option in the state.
Pennsylvania law mandates that businesses must have workers' compensation insurance if they employ one or more individuals. This coverage protects your business from potential financial and legal liabilities that may arise from work-related illnesses or injuries sustained by your employees.
Best Workers’ Compensation Insurance in Pennsylvania
Best Workers’ Compensation Insurance in Pennsylvania
Nationwide offers the best workers’ compensation insurance in Pennsylvania. With an impressive MoneyGeek score of 96 out of 100 and a competitive average monthly cost of $91, it is the most affordable option. Note that actual costs may vary based on factors such as the number of employees.
How was this MoneyGeek score calculated?
- Costs $91 per month
- Receives relatively few customer complaints
- Solid financial strength
Nationwide offers the best workers’ comp insurance in Pennsylvania. It has affordable coverage with an average monthly cost of $91, making it the cheapest choice compared to its competitors. Nationwide's commitment to customer satisfaction is evident, as it receives minimal customer complaints, reflecting the high quality of service it delivers.
Nationwide demonstrates remarkable financial stability, indicated by its impressive AM Best rating of A+. However, it is worth noting that the company has a comparatively longer average quote time, taking approximately three minutes and 19 seconds to generate a quote.
- Offers insurance at $110 per month
- Highest AM Best financial strength rating of A++
- Quick online quote process
When it comes to dependable service and streamlined processes, biBERK emerges as an ideal choice for Pennsylvania businesses. The company holds the highest financial strength rating of A++ from AM Best, guaranteeing its ability to fulfill its commitments to clients.
While biBERK offers slightly higher rates at $110 per month, it compensates for it with a swift online quote process with an average time of just 1 minute and 22 seconds. biBERK also maintains a low average rate of complaints, according to NAIC data, demonstrating a remarkable level of customer satisfaction.
- Monthly cost is $176
- Offers quotes in 37 seconds
- A+ financial strength rating from AM Best
For workers’ compensation insurance in Pennsylvania, Thimble offers a standout feature with its impressively speedy quoting process, delivering quotes in just 37 seconds. The company also maintains a commendable A+ financial strength rating from AM Best, comparable to most other insurance providers.
However, it is worth noting that Thimble has received a relatively higher number of customer complaints on average, indicating a potential area for improvement in terms of customer satisfaction. Additionally, Thimble's coverage comes at a higher average monthly cost of $176, which is relatively expensive compared to other companies.
Cheapest Workers’ Compensation Insurance in Pennsylvania
In Pennsylvania, Nationwide stands out as the most affordable insurance provider, offering an average monthly premium of $91 for businesses with 20 employees and an annual payroll cost of $1,250,000. It is important to note that this rate may vary depending on the number of employees and the annual payroll of your specific business.
Nationwide sets itself apart by providing exceptional affordability, with an average monthly cost of $91 that yields substantial savings when compared to the alternatives. The most expensive option in the state carries an additional monthly expense of $85. Nationwide also excels in customer satisfaction, boasting a minimal number of customer complaints. However, the company has a slightly sluggish average quote time, averaging around three minutes and 19 seconds to generate a quote.
While we used average monthly costs as a basis for ranking the best workers’ compensation insurance in Pennsylvania, it is crucial to consider that the best option for your small business may depend on your specific priorities. Provided below is a table that ranks the companies we assessed in Pennsylvania, showcasing both annual and monthly costs for insuring a business with 20 employees.
Best Workers’ Compensation Insurance for Micro Businesses in Pennsylvania
biBERK emerges as the top choice for workers’ compensation insurance in Pennsylvania for businesses with five employees and an annual payroll of $312,500. With a monthly premium of $54, biBERK provides an outstanding insurance package.
Premiums may vary depending on the number of employees, but the payroll amount holds a more significant influence on determining the premiums. Note that businesses with one to nine employees are generally classified as micro businesses.
biBERK is the best choice for budget-conscious micro businesses in Pennsylvania seeking affordable workers' compensation insurance, with a monthly cost of just $54. The company boasts the second-fastest quote retrieval time among the three examined options, offering accessible and efficient solutions.
biBERK holds the prestigious A++ financial strength rating from AM Best, ensuring its capability to meet client obligations with utmost reliability. Additionally, it demonstrates a commitment to providing excellent customer service, further enhancing its appeal to prospective policyholders.
Best Workers’ Compensation Insurance for Midsize Businesses in Pennsylvania
biBERK is the leading choice for midsize businesses in Pennsylvania that employ 100 individuals, providing a monthly premium of $429. This premium is calculated based on an annual payroll amount of $6,250,000. Although the number of employees plays a role in determining workers' compensation insurance costs, the payroll amount typically carries greater weight when determining premiums.
biBERK emerges as the top choice for midsize businesses in Pennsylvania that are searching for affordable workers' compensation insurance. With appealing pricing options tailored for businesses employing 100 individuals and boasting an annual payroll of $6,250,000, biBERK charges a highly competitive monthly premium of $429 or a yearly premium of $4,543. This is the most cost-effective among the three providers considered. Additionally, biBERK excels in delivering prompt online quotes, facilitating efficient cost comparisons for prospective policyholders.
How Much Is Workers’ Compensation Insurance in Pennsylvania?
Businesses with 20 employees can expect to pay an average monthly cost of $125 for workers’ compensation insurance in Pennsylvania. This amount is notably lower than the national average, which stands at $168 per month.
We established these policy limits to calculate the associated costs:
- $1 million total policy limit
- $1 million per accident limit
- $1 million per employee limit
The total policy limit of $1 million represents the maximum coverage provided for all claims collectively under the workers' compensation insurance policy. The per-accident limit denotes the highest amount the insurer would reimburse for a single incident, while the per-employee limit signifies the maximum coverage accessible for each individual employee.
Referencing the table below, you can see the average expenses of workers' compensation insurance for businesses with five, 20 and 100 employees. This highlights the impact of employee count and payroll on the associated costs.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Pennsylvania
The cost of workers' compensation insurance can vary for each business and is influenced by several factors, such as previous claims history, the number of employees and the payroll costs involved.
Businesses are generally charged a rate for every $100 of payroll, with higher payroll costs leading to elevated premium amounts. In Pennsylvania, the average premium index rate for 2022 stood at $1.27 per $100 of payroll, aligning with the national median rate.
Number of employees
Companies that employ a larger workforce have greater risks and potential injuries, resulting in higher average insurance premiums.
Employee class code
This corresponds to the nature of work carried out by employees and establishes the rate applied for every $100 of payroll. Businesses operating in the construction industry typically face higher rates compared to industries with lower risk levels, such as consulting.
The previous claims history of a business can have an impact on insurance premiums, as a track record of workers' compensation claims may lead to increased costs. According to data from the U.S. Bureau of Labor Statistics, Pennsylvania reported 117,100 nonfatal workplace illnesses and injuries in 2021, while the private industry nationally reported over 2.6 million nonfatal workplace injuries and illnesses.
Do You Need Workers’ Compensation Insurance in Pennsylvania?
In Pennsylvania, businesses that employ one or more individuals, regardless of whether they are part-time or full-time employees, are required to have workers' compensation insurance. However, specific categories of workers, such as domestic employees and executive officers, are exempt from this coverage.
While there are exemptions in place, acquiring workers' compensation insurance in Pennsylvania is essential for safeguarding financial stability. It is advisable to verify the legal requirements with the state to ascertain the specific obligations for your unique circumstances.
Workers' compensation coverage can be obtained through various avenues in Pennsylvania, including private insurance carriers, agents, brokers or the state insurance fund. Another option is to self-insure.
Penalties for employers that don’t provide legally required workers' compensation insurance or comply with workers' comp laws in Pennsylvania include:
- Pursuit of reimbursement
- Prosecution against the uninsured employer
- Potential criminal charges for each day of failure to maintain continuous workers' compensation coverage
What Does Workers’ Compensation Insurance Cover in Pennsylvania?
Workers’ compensation insurance in Pennsylvania offers benefits to employees who experience job-related injuries or illnesses, with the employee serving as the policyholder. While the exact benefits can differ across states, they generally encompass:
- Medical care: Under workers' compensation insurance, the expenses related to work-related injuries or illnesses can be covered, including medical care costs such as doctor's visits, hospital stays and prescribed medications.
- Lost wages: Workers' compensation insurance can offer wage replacement benefits to employees who are unable to work due to work-related injuries or illnesses, ensuring they receive a paycheck during their period of incapacity.
- Death benefits: In the event of an employee's death due to a work-related injury or illness, workers' compensation insurance can offer both a lump sum payment and ongoing financial support to the dependents of the deceased employee.
Workers’ Compensation Insurance Resources for Employees in Pennsylvania
The Department of Labor and Industry oversees workers' compensation in the state. To file a claim and receive workers' compensation benefits in Pennsylvania, employees can follow these steps:
- Report the injury or illness to your employer.
- Seek medical attention from an approved healthcare provider.
- Complete the required claim forms.
- Submit the claim forms to your employer or their insurance carrier.
- Follow up with your employer regarding the claim.
- Cooperate with the insurance carrier's inquiries.
- Await a decision on your claim.
Frequently Asked Questions About Workers’ Compensation Insurance in Pennsylvania
To help you select the best workers’ compensation insurance provider in Pennsylvania, we answered commonly asked questions regarding finding suitable coverage. This information will aid you in making an informed decision.
About Melissa Wylie
- Bureau of Labor Statistics. "IIF Latest Numbers." Accessed May 29, 2023.
- Bureau of Labor Statistics. "State Occupational Injuries, Illnesses and Fatalities." Accessed May 29, 2023.
- Department of Labor & Industry. "Purchasing Workers' Compensation Insurance." Accessed May 30, 2023.
- Department of Labor & Industry. "PA Workers’ Compensation Employer Information." Accessed May 30, 2023.
- Oregon Department of Consumer and Business Services. "Premium Index Rates." Accessed May 30, 2023.
- U.S. Department of Labor. "State Workers' Compensation Officials." Accessed May 30, 2023.