Quick Look: The Best Workers’ Comp Insurance Providers
- #1 Provider of Workers Comp for Small Businesses: The Hartford
- Best for Tailored Coverage: Simply Business
- Best for Bundling Commercial Policies: Progressive
- Best for Industry-specific specialized protections: Liberty Mutual
- Best for Small Businesses with Both Part and Full-Time Employees: Hiscox
- Best fort Staying Compliant With State and Federal Regulations: biBERK
- Best for Reviewing Quotes From Trusted Providers: Tivly
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.
Learn more about how this essential insurance coverage works and the best workers’ compensation insurance providers.
Best Workers’ Comp Insurance
Which workers’ compensation insurance company is the best for your industry? Here are Benzinga’s recommendations.
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.
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.
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.
securely through Progressive Workers Comp's website
Bundling commercial policies
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.
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.
securely through Hiscox's website
Small businesses with both part and full-time employees
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.
securely through biBERK's website
Staying compliant with state and federal regulations
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.
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.
get started through Tivly’s website
Matching you to the provider that fits your needs
What Is Workers Comp Insurance?
Businesses can purchase a workers compensation policy directly through an insurance carrier or a state government fund.
Today, businesses can easily purchase workers compensation online. However, business owners who know little about workers compensation may find it confusing. It is generally better to speak with a licensed insurance agent who can explain the coverages and benefits.
How to Compare Workers Compensation Insurance Plans
In comparing workers compensation policies, make sure the policy is specific to your industry. For example, roofers and heavy equipment operators have greater risk than office workers. Be sure to get a policy that is tailored to the risks in your industry.
The National Council on Compensation Insurance breaks jobs out by 700 job classification codes to help determine rates. This handy workers compensation calculator gives you an indication of rates.
Ask about the underwriting process. Certain commercial insurers are more willing to insure for certain types of risks than others.
You only need your workers compensation policy if you have a claim. Learn when and how to file a claim and get a good understanding of the process.
Explore the benefits and supplemental coverages each policy provides and get the most coverage for the least premium.
Workers’ Compensation Coverage
In general, workers compensation policies provide coverage for medical expenses and liability. The policy wording spells out precisely what is and is not covered under the policy. Each state and each insurance carrier offer different coverages and benefits, so it is crucial for business owners to review the coverages before applying for a policy.
Workers compensation policies include the following coverages at a minimum:
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.
The following workers compensation benefits are optional and may be added to a basic workers compensation policy by endorsement with or without an additional premium:
If an employee alleges negligence, the liability portion of your workers compensation covers attorney costs, court fees and the costs associated with a judgment or settlement.
Workers compensation policies may or may not include a provision for all or partial lost wages. Lost wages coverage pays employees’ wages if they need to miss work to recover from a work-related illness or injury.
In cases where an employee dies due to a work-related accident or illness, the widow, widower or dependents would be paid a part of the worker’s average weekly wage. The rate typically changes depending on the worker’s date of death, and it usually has a cap.
Temporary Disability Benefits
Temporary partial disability pays for lost wages while an employee 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 Benefits
Permanent disability pays for lost wages when an employee cannot return to work on an ongoing basis.
When death benefits are added by endorsement, the policy makes payments to the deceased’s family for financial support. Death benefits also cover funeral and burial expenses.
Retraining or Supplemental Job Displacement Benefits
Workers may not always be able to return to their previous job after a serious illness or injury. Policies may cover all or part of the costs of a retraining program to help workers re-enter the workforce.
Typical exclusions for workers compensation policies include losses caused by intoxication, drug use, company violations, OSHA fines and other losses. Workers compensation policies may also exclude losses for independent contractor injuries and injuries a worker claims after being fired or laid off.
Workers Compensation Laws
Business owners are not subject to federal workers compensation laws. State laws exclusively outline the requirements for businesses in their states.
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.
What Workers’ Compensation Does Not Cover
Each state defines what isn’t covered by workers’ compensation, so check your state’s department of labor to find out specifics as to what isn’t covered. Typically, workers’ comp doesn’t cover these:
- Injuries caused by horseplay (fooling around)
- Injuries caused during a criminal or illegal act
- Self-inflicted injuries
- Injuries that occurred while intoxicated
- Injuries during a voluntary, off-duty recreational activity
- Injuries that occur after being laid off or terminated
Additionally, workers’ compensation may not cover injuries to employees who were knowingly hired illegally. Those injuries become the responsibility of the employer. Similarly, injuries that arise from employee harassment or discrimination may be the employer’s responsibility and not workers’ comp insurance.
Average Workers’ Compensation Cost
- The type of work: Insurers look at the risks involved in the work you do. They assign your business a class code from the National Council on Compensation Insurance.
- How much employees are paid: Workers’ comp insurance is priced based on each $100 of payroll. The higher your payroll, the more your workers’ compensation will cost.
- Where your business is located: State laws vary, so insurance costs vary as well. States may also add taxes and fees.
- Your claims history: If you have a claims history, your costs may increase or decrease depending on how your claims compare to other similar businesses. This is called an experience modifier.
The formula for determining workers’ compensation insurance costs is:
Class Code Rate X Experience Modifier X (Payroll/$100) + State Taxes and Fees
How to Buy Workers Compensation Insurance
Most companies offer the convenience of applying for workers compensation online. Your application goes through an underwriting process, and it may come back with a few more questions. Answer them honestly. You will receive a notification once your policy has been issued.
One of Benzinga’s partners shown here will be happy to help you understand the laws in your state, get the best quote and guide you through the claims process.
Do You Need Workers’ Comp Insurance?
Workers’ comp insurance protects your employees and your business. More than that, it’s the right thing to do. Workers’ comp protects injured employees, helps them return to work, provides for them when they can no longer work and pays death benefits in the event of an unimaginable tragedy. As a result, you are getting more value from this sort of insurance than any other.
While many states allow you to self-insure, this requires you to show you have enough funds to cover workers’ comp claims. That can be cost-prohibitive. Workers’ compensation insurance takes care of your employees while preserving your cash flow. Contact one or more of our recommended providers to get started with a quote today.
Frequently Asked Questions
There is no standard price for workers’ compensation insurance. Pricing is based on your particular business, the type of work you do and the risks you face, your claims history and the state where your business is located. The best way to find out how much it costs is to reach out to carriers and ask for a quote.
Most businesses with employees will need workers’ compensation insurance, regardless of how the business is structured. Texas is the only state where workers’ comp isn’t mandatory for businesses, and some states have exceptions for businesses with very few employees.
The purpose of workers’ compensation insurance is to help employees recover from work-related injuries or illnesses by paying for medical care and compensating them for lost wages. It also helps the families of workers in the event of a fatality. Workers’ comp insurance also protects businesses from lawsuits arising from most work-related accidents. In most cases, employees cannot sue over work-related injuries if their workplace has workers’ comp insurance.
The main factors that influence your premiums are payroll, type of operations and past claims history.
Class codes are based on the level of risk for specific job duties. They determine the rate per $100 of payroll that makes up the workers compensation coverage premium.