To find the best workers’ compensation insurance in Rhode Island, MoneyGeek evaluated each insurer’s affordability, customer satisfaction, financial stability and online quote process. Based on these factors, The Hartford outshined other insurers in our analysis.
Rhode Island requires that employers carry workers’ comp to protect them from shouldering the cost of medical treatments and lost wages if an employee suffers a work-related injury or illness.
Best Workers’ Compensation Insurance in Rhode Island
Best Workers’ Compensation Insurance in Rhode Island
With a MoneyGeek score of 95 out of 100, The Hartford offers the overall best workers’ compensation insurance in Rhode Island. An average policy from this insurer costs $148 per month, but this may differ based on factors unique to your business.
How was this MoneyGeek score calculated?
- Average monthly cost of $148
- Exceptional customer service
- A+ rating from AM Best
For over 200 years, The Hartford has provided people and businesses with financial protection against unexpected challenges. Among its insurance products is workers’ compensation insurance for employers, which costs an average of $148 per month in Rhode Island — the second-cheapest rate in the state. The Hartford also boasts excellent customer satisfaction and financial strength. It receives the lowest rate of complaints out of five other insurers and has an A+ (Superior) financial stability rating from AM Best. Interested insurance buyers can get an online quote in roughly one and a half minutes.
- Monthly premiums average $159
- A++ financial stability rating from AM Best
- High customer satisfaction
Founded in 2015, biBERK is a small business insurance company backed by the Berkshire Hathaway Insurance Group. It has an A++ (Superior) rating from AM Best, the highest available, signifying that biBERK can pay insurance claims without any issue. Furthermore, the company receives a low rate of customer complaints, indicating it provides excellent service. Although biBERK is not the cheapest option, its workers’ comp insurance is still affordable at about $159 per month. When getting online quotes from this insurer, expect the process to take around a minute and a half.
- Costs an average of $102 per month
- Fast online quote system
Pie Insurance has offered workers' comp insurance to business owners since 2017. On average, its policies in Rhode Island cost $102 per month — the lowest rate in the state. Getting quotes online from this insurer takes less than a minute. Pie Insurance has an A- (Excellent) financial stability rating from AM Best, meaning it's very likely to be able to pay claims. However, based on our analysis of the National Association of Insurance Commissioners (NAIC) complaint index, the company has poor customer service.
- Coverage costs $200 per month on average
- Excellent customer satisfaction record
Next Insurance has offered tailored policies for small businesses since 2015. It has an excellent record of meeting customer expectations based on the low rate of complaints it receives. Although its A- financial stability rating from AM Best is lower than most competitors, Next Insurance still has excellent financial strength. That said, the company’s average premium for workers’ comp insurance is expensive at $200 per month in Rhode Island, and getting online quotes takes almost two minutes.
- Average monthly premiums cost $256
- Quality customer service
Nationwide, established in 1925, has grown into one of the largest insurance companies in the world. It has an A+ (Superior) rating from AM Best, indicating strong financial stability. This insurer has also built a reputation for providing excellent service, given its low rate of customer complaints. That said, Nationwide is the most expensive option for workers’ comp insurance in Rhode Island, costing about $256 monthly. Getting online quotes also takes roughly three minutes, longer than other companies.
- Average cost of $209 per month
- Financially sound
Founded in 2016, Thimble was initially called "Verifly." It provides workers’ comp insurance in Rhode Island at an average cost of $209 per month, one of the highest rates in the state. While Thimble has an excellent ability to meet ongoing financial obligations, it sometimes falters at providing good customer service based on the higher-than-average rate of complaints it receives. Still, employers in Rhode Island who want coverage from this insurer may obtain quotes online in less than a minute.
Cheapest Workers’ Compensation Insurance in Rhode Island
Based on our analysis, Pie Insurance offers the most affordable workers’ compensation insurance in Rhode Island at an average of $102 per month.
The amount you’ll pay for a policy depends on factors like employee count and payroll. Our winner in this category is the cheapest company for businesses with 20 employees and annual payroll costs of $1,250,000.
As our top pick, Pie Insurance offers the lowest average rate for workers’ comp insurance in Rhode Island at $102 per month or $1,223 per year. It’s ideal for small businesses just starting out that want affordable coverage. Plus, Pie Insurance has excellent financial stability and can pay claims. But based on the high rate of complaints it receives, its customer service is not as good as other insurers in our analysis.
In the table below, we ranked insurance companies by average monthly cost to find the cheapest option in Rhode Island. However, the cheapest provider for you may vary depending on other factors.
Best Workers’ Compensation Insurance for Micro Businesses in Rhode Island
The best workers’ comp provider for Rhode Island businesses with five or fewer employees is The Hartford, costing an average of $58 per month.
Businesses with less than nine employees are considered micro businesses. While employee count affects insurance costs, payroll tends to have a more significant impact on premiums. We selected our top pick in this category by gathering quotes for a business with five employees and annual payroll costs of $312,500.
The Hartford is our choice for the best workers’ comp insurance for micro businesses in Rhode Island because of its overall blend of affordability and quality service. An average policy from The Hartford costs $58 per month or $695 per year for businesses with five employees and annual payroll costs of $312,500 — the second-cheapest rate in the state. The company also receives the fewest customer complaints, meaning it consistently provides excellent service.
Best Workers’ Compensation Insurance for Midsize Businesses in Rhode Island
For Rhode Island businesses with 100 employees, The Hartford offers the best workers’ compensation insurance at roughly $627 per month.
Employee count and payroll play a significant role in the cost of insurance. We selected our winner by collecting quotes for a business with 100 employees and an annual payroll of $6,250,000.
The Hartford offers the best workers’ comp insurance for midsize businesses in Rhode Island. It is also the second-most affordable option, with policies costing an average of $627 per month or $7,523 per year. Additionally, The Hartford has superior financial strength and can pay its insurance claims. Employers can obtain a quote online in about a minute and a half, slower than some competitors.
How Much Is Workers’ Compensation Insurance in Rhode Island?
The average cost of workers’ comp insurance in Rhode Island for businesses with 20 employees is $179 per month, higher than the national average of $168 per month. We used a sample policy with the following limits:
- $1 million total policy limit
- $1 million per accident limit
- $1 million per employee limit
The insurance provider will pay out a maximum of $1 million per any given accident and $1 million per employee, up to the total policy limit of $1 million.
Employee count and payroll amount play a significant role in the cost of workers’ comp insurance. See how the average policy price in Rhode Island changes by employee count in the table below.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Rhode Island
The cost of workers’ compensation insurance differs from one business to another based on several factors such as payroll, employee count, employee class code and claims history.
Typically, insurance companies charge a rate for every $100 of payroll, which is set at the state level and varies by industry. Businesses with high payroll expenses tend to pay more for coverage than those with lower payroll costs. The average premium index rate in Rhode Island in 2022 was $1.62 per $100 of payroll, slightly higher than most states.
Number of employees
The amount you pay for workers’ comp depends on the number of employees you have. Having a larger employee count increases your rate.
Employee class code
Insurance providers usually use class codes to categorize the type of work employees perform, such as consulting or construction. These codes are also used to determine the rate charged for every $100 of payroll. Businesses in industries with a higher risk of injury, like construction, often pay a higher premium.
Businesses that have filed workers’ compensation claims before are often considered risky to insure and charged higher premiums. The U.S. Bureau of Labor Statistics (BLS) recorded over 2 million nonfatal private-industry workplace injuries and illnesses across the country in 2021.
Do You Need Workers’ Compensation Insurance in Rhode Island?
In Rhode Island, businesses with one or more employees must carry workers’ compensation insurance. Sole proprietors, partners and independent contractors are exempt from having coverage. The Rhode Island Department of Labor and Training (DLT) defines an independent contractor as an individual who maintains an independent business and is available for hire.
Certain real estate, agricultural and domestic service employees may also be exempt from obtaining workers’ compensation insurance, as well as any individual appointed as a corporate officer between January 1, 1999, and December 31, 2001, who was not previously an employee of the corporation.
Employers in Rhode Island who fail to obtain workers’ compensation coverage could be subject to civil and criminal penalties, such as:
- A fine of $1,000 per day for each day without workers’ compensation insurance.
- Employers are subject to a felony charge and, if convicted, face a $10,000 penalty and two years in prison.
- Closure of business operations under the authority of the DLT Director.
What Does Workers’ Compensation Insurance Cover in Rhode Island?
Workers' compensation insurance helps cover the medical expenses of employees suffering work-related injuries or illnesses. These include hospital stays, medical treatments, medicine and rehabilitation. It also covers a portion of the income the employee loses while unable to work due to injury or illness.
For employers, workers’ compensation insurance helps avoid financial losses when an employee suffers an injury or contracts an illness in the workplace. The insurance covers medical expenses, lost wages and other costs. Additionally, workers’ comp offers protection against lawsuits by injured workers.
Workers’ Compensation Insurance Resources for Employees in Rhode Island
Employees in Rhode Island can find resources on workers’ compensation insurance through the DTL’s Workers' Compensation Division.
To receive workers’ comp benefits, employees injured on the job or have an illness caused by their workplace must first inform their employer. Then, the employer will notify their insurance provider to file a First Report of Injury with the Division of Workers' Compensation within 10 days of the injury or diagnosis. If the injury is fatal, a First Report of Injury must be filed within 48 hours.
Frequently Asked Questions About Workers’ Compensation Insurance in Rhode Island
We addressed some commonly asked questions about workers’ compensation insurance in Rhode Island to help you determine the best option for your business needs.
About Melissa Wylie
- biBERK. "About biBERK." Accessed May 29, 2023.
- Nationwide. "About Us." Accessed May 29, 2023.
- Pie Insurance. "Timeline." Accessed May 30, 2023.
- RI Department of Labor and Training. "Basic Questions about Workers' Compensation." Accessed May 30, 2023.
- RI Department of Labor and Training. "For Employers." Accessed May 30, 2023.
- The Hartford. "Our History." Accessed May 30, 2023.
- Thimble. "Thimble Makes Insurance Simple." Accessed May 29, 2023.