NEXT is Vermont’s best worker’s compensation insurance provider, scoring almost a perfect rating with 98 out of 100 points. The company offers reliable customer service, very low workers' comp rates and an extensive coverage selection. However, Pie and Thimble are good runners-up that you should also consider for coverage.
Cheapest Workers' Comp Insurance in Vermont
Updated: June 3, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, Pie, Thimble, biBerk and The Hartford are the best cheap workers' comp insurance providers in Vermont.
Workers compensation coverage costs an average of $949 per year or $82 per month for most small businesses in Vermont.
Workers' comp insurance is required in Vermont for all companies with employees to cover expenses from employees sustaining injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Vermont
| NEXT | 98 | $173 |
| Pie | 92 | $196 |
| biBerk | 90 | $351 |
| The Hartford | 90 | $439 |
| Thimble | 89 | $304 |
| Nationwide | 86 | $488 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Most affordable overall
Excellent customer service
Great savings opportunities
cons
May lack affordability for larger businesses
Slower quotes process than some competitors
COMPANY HIGHLIGHTS
With an outstanding 4.7 out of 5.0 customer service rating that ranks second-best overall, NEXT proves its commitment to Vermont employers goes beyond just competitive pricing. Their most affordable workers' comp rates in the state become even better with multi-policy discounts reaching up to 10%.
How Much Is Workers' Comp Insurance in Vermont?
For businesses in the Green Mountain State, workers' comp rates vary anywhere from $949 to $10,032 per year. However, this only represents software development companies, and your rates will vary depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
| Larger small businesses | $849 | $10,032 |
| Businesses with five or less employees | $82 | $949 |
| Medium-size small businesses | $205 | $2,416 |
Factors That Impact Workers’ Compensation Costs in Vermont
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs including the following: industry type, location, payroll size and claims history.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium.
Vermont Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task, so we've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Vermont
Below we detail the best steps to take to ensure you get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help inform your decision more personally.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers equally to find the best deal. Prices vary depending on how you get quotes, whether online comparison sites or by speaking with an agent. Use different methods and contact various companies to understand what's best for your business.
Do You Need Workers’ Compensation Insurance in Vermont?
All businesses in the state are required to carry workers’ compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.
WORKERS’ COMP PENALTIES IN VERMONT
Employers in Vermont need to follow the rules for workers' comp insurance. Here's what could happen if they break the law:
- $100 daily penalty (first seven days) - Civil penalty of $100 per day for the first seven days without coverage.
- $150 daily penalty (after seven days) - Increased to $150 for each day after the first seven days of non-compliance.
- Stop-work orders - The state can shut down business operations until proper coverage is secured
- Loss of lawsuit protection - Employers lose the ability to defend against workers' comp lawsuits and face employee lawsuits for medical costs and lost wages.
- Workers' comp fraud penalties - Fines up to $100,000 and three-year prison term for crimes involving $10,000+, or up to $10,000 fine and two years prison for crimes under $10,000.
What Does Workers’ Compensation Insurance Cover in Vermont?
Workers' compensation insurance provides benefits to employees with work-related injuries or illnesses. It covers medical care, disability benefits and lost wages, paying 66% of weekly wages plus $10/week per dependent child as per Vermont law. This protects employees and shields businesses from legal claims.
Best Workers' Compensation Insurance Vermont: Bottom Line
The top three best and most affordable workers' comp insurance providers in Vermont are NEXT, Pie and Thimble. While these companies are our recommendations, you should compare rates for yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Vermont: FAQ
Below are answers to frequently asked questions about Vermont workers' comp insurance from our MoneyGeek experts:
Which company has the best workers’ compensation insurance in Vermont?
In Vermont, NEXT stands out with its competitive pricing, averaging at $116 per month, coupled with a low complaint index. However, the ideal insurance choice should be informed by specific factors such as your industry, workforce size, and state mandates.
Which company has the cheapest workers’ compensation insurance in Vermont?
Pie is the most cost-effective workers' comp insurance provider for businesses in Vermont, regardless of size.
Does Vermont require businesses to have workers’ compensation insurance?
Yes, Vermont mandates that all businesses provide workers’ compensation insurance for their employees.
In Vermont, all enterprises must secure workers' comp insurance. Exceptions exist for sole proprietors, partners, and fully-owning corporate officers who may choose to be exempt.
How much does workers’ compensation insurance cost in Vermont?
In Vermont, a mid-sized business with 20 employees typically incurs a worker’s compensation insurance expense of $205 per month.
How We Rated Workers' Comp Insurance Companies in Vermont
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed June 3, 2025.