How Much Is Workers’ Comp Insurance?

Workers' compensation insurance costs you an average of $443 annually per employee. If you run a consulting firm with $150,000 payroll, expect to pay around $1,773 yearly since office workers rarely get hurt.

A roofing company with identical payroll will pay nearly 15 times more. Its employees face constant fall risks, equipment accidents and weather-related injuries. How much you pay for business insurance depends on how insurers assess your industry risk, claims history, payroll amounts and location.

Your industry determines your workers' comp rates more than any other factor. If you own a restaurant, you'll pay 15% below the $443 average, while construction companies face costs 140% higher due to equipment hazards and fall risks.

Manufacturing and auto repair businesses, which involve heavy machinery and repetitive motion injuries, pay 20% to 60% above average. Office-based industries like consulting cost much less since workplace injuries rarely occur. When you get workers' compensation coverage, your actual premium depends on your specific classification code and individual risk factors.

Note: These state averages show monthly costs per employee based on regional wage levels and regulatory requirements. Your rate will vary based on your industry, claims history, payroll amount and other business-specific factors.

New York has the highest rates at $43 monthly per employee due to expensive medical care and strict regulatory requirements. North Carolina, which has the most affordable workers' comp insurance, offers rates 25% lower.

Regional patterns show that the Northeast and West Coast states cost 10% to 20% more than the Southeast and Midwest regions. Differences in medical costs, wage levels and state regulations cause these disparities.

Note: These state averages show monthly costs per employee based on regional wage levels and regulatory requirements. Your actual premium depends on your industry, claims history, payroll amount and business-specific factors.

Workers' comp insurance costs range from $3 to $419 monthly, depending on your industry and state. Insurers calculate your premium using your business classification, claims history, payroll and location, which creates these wide variations. You can secure more affordable workers' comp insurance by paying annually, bundling policies, comparing quotes and verifying your classifications.

We've compiled answers to the frequently asked questions small business owners have about workers' compensation insurance cost:

We gathered workers' comp insurance quotes for small businesses across 79 industries and 46 states. Each quote used the same business profile to make accurate comparisons:

• 2 employees (3 people total, including the owner)
• $150,000 annual payroll
• $300,000 annual revenue
• Already insured status

This business size reflects most companies that need workers' comp coverage. We selected insurers with nationwide availability and online quoting systems.