Workers’ comp insurance helps your employees if they experience a work-related injury or illness. It helps make up for their lost wages, pays for their medical care, and may assist them with vocational rehabilitation if they need to retrain for new employment. It also pays a death benefit to employee families in the event of a fatality. That’s why having the best worker’s comp insurance is so important.
Businesses with employees are required to purchase workers’ compensation in every state except Texas. In addition to being a requirement, ensuring your employees are supported if they’re hurt on the job is the right thing to do.
Quick Look at the Best Workers’ Comp Insurance:
Best Workers’ Comp Insurance
Which workers’ compensation insurance company is the best for your industry? Here are Benzinga’s recommendations.
The Hartford
Founded in 1810, The Hartford has a long history of insuring businesses. It’s the No. 2 workers’ compensation insurer in the country with high ratings from AM Best, an organization that rates insurance companies.
The Hartford has specifically been working with construction firms since 1975. It’s familiar with the risks posed by construction, and its risk engineering specialists can provide advice and guidance on improving worksite safety. It offers job site surveys, safety manual assistance, OSHA training, safety management workshops and more.
It has high ratings from its customers citing its easy claims process and flexible billing options, including pay-as-you-go.
It also has an extensive medical network with over 1 million providers and a Nursed Back to Health Program. That program uses experienced nurse case managers to coordinate care and support your employees.
Why We Love It: It’s a hassle-free, entirely paperless process. You’ll get an assigned representative for each case who is easy to reach — a major plus in the world of insurance.
Simply Business
Simply Business offers a comprehensive suite of business insurance that specializes in making it easy to insure your business.
Whether you’re looking for construction workers’ insurance or insurance for your startup, Simply Business helps you find the right coverage at the right price.
Tell Simply Business a little bit about your business and you’ll get almost-instantaneous affordable quotes from top insurance providers. You can look into workers’ comp insurance that will cover everyone on your team, and you can get covered in accordance with state law without overspending.
Building your business is hard enough. Let Simply Business make it easier. Get a quote from Simply Business today.
Why We Love It: This insurance marketplace allows you to get quotes from multiple providers on one site. It also has an excellent resource library and offers a variety of third-party insurance options.
Progressive
Repairs and maintenance services often require being out and about, which means workers’ compensation and commercial auto insurance are an essential part of your insurance package. According to the Insurance Information Institute, transportation-related accidents were the leading cause of workplace deaths in 2019.
Progressive makes it easy to get both of these types of coverage and more. It offers the Progressive Advantage Business Program. With 1 call or a few clicks, you can secure a business owners policy, professional liability insurance, commercial auto insurance and workers’ compensation insurance. Progressive is the top commercial auto insurance company in the country, and for the lines it doesn’t directly offer, it works with reputable carriers it’s selected.
Whether you contact it by phone or online, its experts are ready to help you choose the right workers’ comp policy for your business.
Why We Love It: Progressive is an established name in reliable insurance. It allows you to bundle various business insurance policies, making it a one-stop business insurance shop. However, you’ll get workers’ comp from another provider vetted by Progressive.
Liberty Mutual
The coronavirus pandemic has shown the immense risks that healthcare organizations face. Liberty Mutual has a dedicated healthcare team that knows the ins and outs of these risks and how to support organizations and their employees.
It offers workers’ compensation that’s tailored to these needs and includes coverage for communicable diseases. It can also help your organization lower risks by assisting you in addressing issues like employee fatigue and burnout, needle stick accidents and safe patient and resident handling.
Liberty Mutual has safety and risk mitigation guidance available, and its dedicated health care claims team ensures your employees have the support they need to recover.
Why We Love It: Liberty Mutual offers coverage for complex risks. You’ll work with a team skilled at addressing workplace challenges and improving safety, and you’ll have good workers’ compensation insurance.
Hiscox
Hiscox is an excellent choice for retail businesses because of its century of experience and expertise in working with small businesses. It works with more than 400,000 small business customers and has stellar reviews from those customers.
Hiscox offers flexible payment options, which are critical for retail businesses. When you file a workers’ compensation claim, it assigns a dedicated claims representative to ensure your employee is taken care of.
Hiscox offers fast online workers’ compensation quote estimates. In addition to workers’ comp coverage, Hiscox also offers business owners policies, general liability coverage and more.
Why We Love It: Hiscox makes the insurance application process easy, with a wide availability of policy types for small businesses. It has good online features, including claim filing, quotes, certificates of insurance, and policy changes.
biBERK Workers Compensation Insurance
biBERK is part of the Berkshire Hathaway Insurance Group and has over 40 years of insurance experience. It offers a streamlined online application process and the option of speaking with an insurance expert on the phone for personalized service.
biBERK is a solid choice for small businesses who need to ensure their worker’s compensation policies are compliant with state and federal law as they grow.
biBERK also makes it easier for businesses to get their Certificate of Insurance, or COI. You have access to your free COI at any time. Just visit biBERK’s website to get one if you need it.
Why We Love It: Many customers report good support and a simple claims process. Its rates can be competitive for many industries. You can get instant coverage and instant certificates of insurance online.
CoverWallet
CoverWallet is an Aon company that offers a wide range of business insurance, included workers compensation coverages. Policyholders get coverage for things like self-inflicted injuries, pain and suffering, injuries incurred off the job and actions that violate company policy. CoverWallet provides business insurance using technology, meaning your coverage is customized and optimized based on your specific needs.
Workers’ comp through CoverWallet will help protect you and your employees.
Why We Love It: It has an A+ Better Business Bureau Rating. Many customers were satisfied with fair settlements and good customer service.
Tivly
Tivly offers 1-stop shopping for workers compensation policies using its convenient online website. Fill in the criteria online and get a quote. Tivly is partnered with over 200 providers and will match you with the one that fits your needs.
Tivly works with providers on our list like Progressive, The Hartford, Liberty Mutual and Gallagher.
Why We Love It: It has an easy quote process that allows you to compare 200 providers to match with the one that fits your needs. Get a customized quote for different types of business insurance.
Is Workers’ Comp Insurance Required?
Workers’ compensation insurance is required in all states except for Texas. In addition to needing the insurance, you will need a certificate of insurance available. In most states, you must post this certificate in the place of business. If you’re a sole proprietor or self-employed and don’t have any employees, whether you need workers’ comp insurance depends on state laws.
Additionally, some states require you to purchase workers’ comp insurance from a state fund. These states are North Dakota, Ohio, Washington, and Wyoming. Several states, including California, New York, Illinois, and Pennsylvania, have severe penalties for not carrying workers’ comp insurance. Penalties involve fines, imprisonment, or both.
How Much Does Workers’ Compensation Insurance Cost?
How much workers’ comp insurance costs depends on the industry, size of your business, location, and claim history. Here are the factors that affect total costs:
- Type of work or business: Your business will be assigned a business class code from the National Council on Compensation Insurance, which is linked to your industry.
- Business Location: State laws vary, so insurance costs vary as states may add taxes and fees.
- Payroll size: Generally, the larger the payroll, the greater your coverage needs and the higher your insurance premium.
- Claims history: If you have a claims history, your costs may increase or decrease depending on how your claims compare to similar businesses.
| Industry | Average Cost Per Year |
| Construction | $4,101 |
| Hotels and motels | $1,586 |
| Real estate | $255 |
| Transportation and warehousing | $3,300 |
| Wholesale trade | $1,800 |
How to Choose
When choosing the best insurance companies for workers’ compensation, key considerations include:
Understand Policies for Coverage Across Different States
You might need different policies depending on where your business is located and the states in which it operates. It’s essential to learn the state requirements to meet compliance for your business and all areas of operation.
Compare Different Insurance Providers
When comparing insurance providers, check flexible payment options, bundling options, financial ability to pay claims, a network of health care providers, and positive customer and third-party reviews. You can use Tivly to compare various providers easily.
Work With an Experienced Insurance Broker or Agent
Working with an experienced insurance broker or agent can be a practical solution, especially if you have a large business and need someone to help you compare all available options. An experienced insurance broker can also suggest which insurance you need to protect your business.
What Does Workers’ Compensation Insurance Cover?
Workers’ compensation insurance covers a variety of risks related to your business’s operations, including direct liability and the employee’s lost wages or medical costs.
Employers Liability
Employers’ liability includes workplace dangers that cause accidents, injuries, or illnesses. Workers’ compensation offers protection if an employee claims your business is liable for damages.
Lost Wages
Workers’ comp will cover the lost wages if an employee is injured or ill due to workplace issues. This can include cash payments made directly to the employee.
Medical Expenses
If your employees need medical care due to workplace injury, even if they have other health insurance, workers’ comp insurance is designed to cover this medical care. The medical expenses portion of a workers’ compensation policy includes medical treatment for a work-related illness or injury. It covers emergency room visits, surgery costs, prescriptions, and therapies.
Temporary and Permanent Disability Benefits
Temporary disability pays for lost wages while employees cannot work during short-term recovery. It also makes payments if an employee can only return to work on a limited basis or perform limited duties at a lower wage. Permanent disability pays for lost wages when an employee cannot return to work continuously.
| Classification | What It Means |
| Temporary total disability | The employee cannot perform any job functions but is expected to recover. |
| Temporary partial disability | The employee may be able to do some light work but not all of their previous work. They’re expected to recover. |
| Permanent total disability | The employee cannot do any work due to serious illness or injuries and isn’t expected to return to work. |
| Permanent partial disability | The employee can perform light tasks but isn’t expected to return to their previous workload. |
Rehabilitation
This can include physical therapy or other therapies, medicines, and treatments necessary for the employee to recover. This may also include an inpatient rehabilitation facility.
Retraining or Supplemental Job Displacement Benefits
This coverage helps employees unable to return to their previous work due to work-related injuries to acquire new skills or training to reenter the workforce. This is usually training in a new area to pursue a different career.
Survivor Benefits
Survivor benefits are paid to the surviving spouse or family member. This is usually a cash payment. In some states, the surviving spouse or minor children or dependents are entitled to weekly cash benefits.
Death Benefits
When death benefits are added by endorsement, the policy pays financial support to the deceased’s family and covers funeral and burial expenses.
What Isn’t Covered By Workers’ Comp Insurance?
Sometimes, you’ll need to add specific coverage or a rider. Generally, workers’ comp insurance won’t cover:
- Employee-caused accidents: For example, injuries caused by horseplay or fooling around. Injuries that occur while intoxicated also aren’t covered.
- Self-inflicted injuries: Related to the above, it won’t be covered if the employee inflicts the injury.
- Off-duty injuries: Injuries during a voluntary, off-duty recreational activity aren’t covered.
- Previous employees’ injuries: Injuries after being laid off or terminated aren’t covered.
- Illegal hires: In some cases, workers’ comp insurance won’t cover injuries to illegally employed individuals.
Workers Compensation Laws
Business owners are not subject to federal workers compensation laws. State laws exclusively outline the requirements for businesses in their states.
The federal government offers workers compensation to federal employees.
State laws specify the circumstances where businesses have to carry workers compensation.
Depending on the state laws, specifications may include:
- Insuring all employees for workers compensation
- Providing coverage for businesses that have 1, 3, 4, 5 or more employees
- Excluding requirements for limited exemptions (agricultural, for example)
- Providing coverage for part-time or seasonal employees
- Insuring on a self-insured basis
Texas is the only state where workers compensation insurance is not required. Businesses may only purchase workers compensation coverage from state programs in North Dakota, Ohio, Washington and Wyoming.
Failure to obtain workers compensation where it is mandated can result in fines or jail time.
Frequently Asked Questions
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Yes, all employees are covered by workers’ compensation insurance as long as they work for the company.
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Employers in Texas aren’t required to have workers’ compensation insurance. In addition, some self-employed individuals may not be required to have workers’ comp.
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Yes, usually, even with one employee, your business will need workers’ comp. Most state laws require small businesses with at least one employee to carry workers’ compensation insurance.
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You might not be required to have workers’ compensation insurance as a self-employed individual, but you could choose to get coverage.
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How long workers’ compensation benefits last varies by state. It also depends on whether it’s a temporary disability, permanent disability, or a full or partial disability.
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A workers’ comp audit is an annual confirmation that your premium matches your actual payroll and you have the necessary coverage. The insurance company checks and compares your business metrics to your last year’s audit or estimates.