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Workers’ compensation or workman’s comp is one of the most integral forms of business insurance in the U.S. Workers Comp is a way for both employer and employee to shield themselves financially should the worst happen while on the job.
If you’re a business owner, you want to shop around for workers comp insurance to find the absolute best one for your business. In this guide we run through the best workers comp insurance companies.
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Overview Of Best Workers Comp Insurance
The average worker’s comp claim is $41,003 while the average cost of workers com insurance is $1.85/$100 of payroll. Clearly, it pays to have coverage, but who offers the best worker’s comp policy. Let’s compare top providers and evaluate them objectively on the ease of their website, types of insurance, ease of getting a quote, and JD Power metrics.
Note: Insurers are not ranked in a particular order. Their rank does not determine that one service is better than another. Our article should be used as a starting point for your research.
1. Nationwide
JD Power–a trusted consumer intelligence company–ranked Nationwide number one for worker’s comp insurance with a high score of 868. Their website is very user-friendly with an ease of use score of 5 out of 5. The types of insurance they have available also represent a good variety of policies earning them another 5 out of 5. They also scored a 5 on ease of getting an insurance quote which earns them a perfect score across the board. They provide a quote via AI so you don’t have to wait for an agent or make any calls either.
2. Chubb
Chubb is the largest publicly traded insurance company of its kind (P&C) in the entire world. They’re also the largest commercial insurance provider of any kind in the United States. Reach and resources like that are probably why they have a website that’s so easy to use with such good insurance options available. It’s harder to get a quote and their site will connect you to an agent to do so. JD Power ranked them second with a score of 858 though, so they must be a customer-focused company.
3. State Farm
“Like a good neighbor, State Farm is there.” That’s their motto and their mission. Let’s check their scores to see if they live up to it. They ranked third on JD Power’s list with a score of 854 which is just a few points away from Chubb’s score. Their website was okay. They have an average ease of use score, but nothing special. Their insurance options were better, a 4 out of 5. They too could make it easier for prospective customers to get a quote, but they’ll connect you to an agent if you want one.
4. The Hartford
They report that a people-first philosophy is at the heart of everything they do at the Hartford insurance company. Their mission is to supply great insurance. More than that though, they aim to support their community and the people in it to cause real and lasting change. Despite their touching mission statement JD Power, a trusted consumer advocate, ranked them fifth place with a score of 830, significantly lower than the others. Their website was pretty easy to use but it could be better, and the quote button failed to work at all. Their insurance options are very good, though.
5. Hiscox
The company was founded way back in 1901. For over 100 years Hiscox has been striving to “encourage courage” by covering small business owners so they can afford to take the risks that can help their business grow. They have almost half a million small business owners as customers. Their site is well organized and easy to use with a wide array of insurance options for small business owners to choose from. Getting a quote is an automated process. You enter your state, profession, insurance type, and answer 21 questions about your business details, so it could be easier.
6. Allstate
You’re in good hands with Allstate is their motto. They aim to help their communities and make a difference. They go out of their way to aid after natural disasters, and they do other community outreach. Unfortunately, their scores tell a different story. Their website has average usability as does their available insurance. Getting an AI quote is relatively easy giving them a score of 4 out of 5. In spite of their seemingly customer and community-focused approach, the consumers that rated them for JD Power gave them a score of 848 and put them 8th on the list of providers.
7. Liberty Mutual
Liberty Mutual–or Liberty Butumal as it’s amusingly called in their commercial–is another insurance company that puts social issues front and center on their about page. They want to help move society forward by helping others make social progress a reality and using their financial resources to help drive innovation. Their website also has average ease of use and receiving a quote. The types of insurance available were better though. Overall JD Power ranked them 11th with a score of 836. It seems they too could afford to make some progress of their own.
Is Workers Comp Mandatory?
Workers comp is highly dictated by the state in which the company does business so different states have different standards for who is required to provide it. Many states dictate whether workers comp is mandatory based on the number of employees you have.
For example, in Ohio if you have more than one employee you must have workers comp. In Montana on the other hand, it wouldn’t be mandatory until you hit at least five employees. To see a full list of state by state laws you can see it here.
The bottom line is though that if you’re a small business with employees you should want to get workman’s comp anyway because of how much protection it gives you.
If an employee gets hurt on your watch, your company could be liable for tens or maybe hundreds of thousands of dollars. That’s enough to ruin any small business.
Who Is Exempt From Workers Compensation Insurance?
In certain, but rare circumstances, a company may not need workers comp insurance. For example, the following may be exempt:
- Sole proprietors
- Businesses with fewer than X employees
- Employers of domestic workers
- Farm labor employers
- Executives of non-profits
- Part-time childcare givers
- Armature sports officials
- Some entertainers
- Independent & Casual workers
Examples of variation by state include:
- Texas – Optional for all employers other than the government when employing construction workers
- Ohio – All businesses with employees, no exemption, owners, partners, and sole proprietors don’t count as employees
- Utah – All businesses with employees, with few exceptions. Owners, partners, and sole proprietors count as employees but may be excluded through the insurance company.
What Does Workers’ Comp Cover?
Workers comp shields business owners financially from any accidents that happen on the job. That includes injuries and illness. Her are a few of the things that workman’s comp can cover:
- Medical costs – Medical bills related to workplace injury or illness.
- Long-term care – If the employee’s injury or illness requires hospitalization or physical rehabilitation, they cover the cost.
- Lost wages – They’ll pay a portion of the employee’s usual pay while you recover.
- Workplace accommodations – If special equipment, like an ergonomic chair or keyboard, for example, is required for the employee to return to work, they’ll pay for it.
- Job training – If the injury makes the employee incapable of resuming their former job, they’ll pay to train them in a new skill.
- Disability benefits – If the injury causes a disability that doesn’t allow the employee to return to work at all, either temporarily or permanently, they’ll pay out disability benefits.
- Death benefits – If the employee is killed on the job, the next of kin can receive compensation.
How Much Does Workers Comp Cost In Every State?
Like we said, workers comp is highly dictated by the state you operate in. States set how much workers comp insurance you need to buy, thus influence the minimum amount you should expect to pay. In the table below you can see the average rate of workers comp insurance per $100 of revenue.
| State | Minimum Workers Comp Rate | Maximum Workers Comp Rate |
|---|---|---|
| Alabama | $0.15 | $22.80 |
| Alaska | $0.41 | $15.85 |
| Arizona | $0.20 | $20.61 |
| Arkansas | $0.13 | $10.96 |
| California | $0.40 | $33.57 |
| Colorado | $0.13 | $13.53 |
| Connecticut | $0.14 | $16.75 |
| Delaware | $0.22 | $14.71 |
| Florida | $0.26 | $19.40 |
| Georgia | $0.12 | $38.83 |
| Hawaii | $0.21 | $10.54 |
| Idaho | $0.28 | $18.04 |
| Illinois | $0.11 | $37.24 |
| Indiana | $0.11 | $7.69 |
| Iowa | $0.30 | $16.45 |
| Kansas | $0.11 | $12.49 |
| Kentucky | $0.10 | $18.15 |
| Louisiana | $0.17 | $15.93 |
| Maine | $0.25 | $14.00 |
| Maryland | $0.24 | $13.89 |
| Massachusetts | $0.07 | $9.77 |
| Michigan | $0.16 | $11.04 |
| Minnesota | $0.10 | $20.49 |
| Mississippi | $0.20 | $21.96 |
| Missouri | $0.15 | $19.64 |
| Montana | $0.37 | $22.84 |
| Nebraska | $0.13 | $7.40 |
| Nevada | $0.21 | $11.55 |
| New Hampshire | $0.16 | $15.87 |
| New Jersey | $0.27 | $19.72 |
| New Mexico | $0.24 | $27.61 |
| New York | $0.07 | $29.93 |
| North Carolina | $0.10 | $34.06 |
| North Dakota | N/A | N/A |
| Ohio | N/A | N/A |
| Oklahoma | $0.20 | $19.49 |
| Oregon | $0.10 | $24.48 |
| Pennsylvania | $0.12 | $26.39 |
| Rhode Island | $0.15 | $13.57 |
| South Carolina | $0.18 | $36.19 |
| South Dakota | $0.16 | $23.29 |
| Tennessee | $0.11 | $21.47 |
| Texas | $0.07 | $13.29 |
| Utah | $0.90 | $20.66 |
| Vermont | $0.21 | $13.37 |
| Virginia | $0.08 | $14.03 |
| Washington | N/A | N/A |
| West Virginia | $0.12 | $5.47 |
| Wisconsin | $0.24 | $20.40 |
| Wyoming | N/A | N/A |
Bottom Line
Workers compensation insurance is one of the most important purchases a business can make. It is fairly inexpensive and will shield you and your employees from financial ruin caused by an accident which was out of anyone’s control
