Best Workers' Comp Insurance in Vermont (2026)

The Hartford tops our analysis for the best workers' comp insurance in Vermont, delivering competitive rates, outstanding customer support and comprehensive coverage options. ERGO NEXT and Coverdash round out the top three, both providing reliable alternatives for Vermont business owners.

The Hartford has the cheapest workers’ compensation insurance in Vermont at $82 monthly per employee ($984 annually). ERGO NEXT follows closely at $83 monthly, while Coverdash ranks third at $96.

The pricing difference between providers can have a major affect on long-term costs for small businesses in our analysis. For example, the gap between The Hartford ($82) and Thimble ($109) equals roughly $324 more annually per employee. Businesses with multiple employees and lower-risk operations benefit most from these savings, while pricing differences narrow in higher-risk industries where underwriting plays a larger role in final premiums.

The Hartford has the lowest workers’ compensation rates in more Vermont industries than any other provider in our analysis, ranking cheapest in 12 of the 25 industries we reviwed. Its strongest pricing appears in lower-risk, office-based industries.

ERGO NEXT is the more affordable option for most Vermont businesses in physically demanding or higher-risk industries, including construction and contracting ($202 a month), transportation and logistics ($253 a month) and agriculture and natural resources ($138 a month). Coverdash has the lowest rates in two industries, including childcare services ($30 a month) and fitness services ($55 a month).

Our analysis of Vermont workers’ compensation rates shows that industry classification has a much bigger impact on pricing than many businesses expect. Vermont businesses pay about $107 monthly per employee on average, roughly 45% above the national average of $74, but actual costs range from $15 monthly for beauty and wellness businesses to $322 for transportation companies.

For most employers, statewide averages provide limited insight into real insurance costs. A consulting firm may pay around $22 monthly per employee, while a trucking company can pay more than $300 for the same required coverage. Industry risk classification is the primary factor driving workers’ compensation premiums in Vermont.

Vermont workers' comp rates are set under the NCCI class code system and regulated by the Vermont Department of Financial Regulation. The state's private competitive market structure, combined with above-average benefit levels, is the primary driver of Vermont's cost position above the national average of $74 a month.

Vermont law mandates workers' compensation coverage for all employers with one or more employees, including part-time workers. You don't select coverage amounts since Vermont sets statutory benefits your policy must provide: unlimited medical coverage, two-thirds of average weekly wages for temporary disability, and permanent disability benefits based on injury severity.

Coverage costs are based on your payroll and industry classification code, not a limit you choose. Penalties for noncompliance include up to $100 daily for the first seven days without coverage, $150 daily thereafter, and potential stop-work orders shutting down your business.

You're required to have coverage in Vermont, but some business categories are exempt from workers' comp requirements:

• Agricultural/Farm Employers with Less Than $10,000 Annual Payroll: Vermont exempts farm employers whose aggregate payroll is less than $10,000 in a calendar year from carrying workers' comp insurance.
• Corporate Officers and LLC Members (With Approval): Corporate officers and LLC members are automatically covered in Vermont, but may elect exclusion with prior approval from the Vermont Department of Labor.
• Independent Contractors Meeting Vermont Criteria: An independent contractor who meets Vermont's specific criteria under 21 V.S.A. § 601(14)(F) is exempt when they have a written agreement, work independently with no employees, and haven't contracted with other independent contractors.
• Sole Proprietors and Partners: A sole proprietor or partner in an unincorporated business is automatically excluded from Vermont workers' comp coverage but may elect to be covered.
• Self-Employed Individuals: Self-employed business owners in Vermont are not required to carry workers' comp insurance for themselves, but can voluntarily purchase coverage.
• Casual Workers: Workers performing casual services in or about a private dwelling that are not part of the employer's usual Vermont business operations are exempt from coverage.
• Domestic Service Workers: Individuals employed in domestic service in or about a private home in Vermont are exempt from workers' comp requirements.
• Family Members: Family members of Vermont employers who reside in the employer's household are exempt from mandatory workers' comp coverage.
• Real Estate Professionals: Licensed real estate brokers and salespersons in Vermont who meet independent contractor criteria are exempt from workers' comp coverage requirements.
• Agricultural/Farm Workers (Small Farms): Workers employed by Vermont agricultural employers with less than $10,000 annual aggregate payroll are exempt from workers' comp coverage.

The Hartford, ERGO NEXT and Coverdash are Vermont's top  workers' comp options. Research each company's service quality, maximize discounts and select coverage that fits your budget. The best choice balances monthly rate, claims support quality and alignment with your business's NCCI class codes.

Use these resources to move forward with Vermont workers' comp coverage. Rates vary by NCCI class code, so getting a personalized estimate is the most reliable way to confirm your actual premium.