If you own a business with employees, one of the most important types of coverage you’ll need is workers’ compensation insurance. Not only is it required in most states, but it also protects your business from costly lawsuits and helps employees get the medical care and benefits they deserve after a work-related injury.
But how do you get the right workers’ compensation insurance quote? And what factors affect the price you’ll pay? This guide breaks down everything you need to know—from how much it costs, to how to compare quotes and save money.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance (also called “workers’ comp”) is a state-mandated insurance program that covers employees who are injured or become ill due to job-related duties. It typically covers:
- Medical expenses
- Lost wages
- Disability benefits
- Rehabilitation services
- Death benefits (for fatal incidents)
In return, employees usually waive the right to sue their employer for workplace injuries—offering protection on both sides.
Why You Need a Workers’ Comp Insurance Quote
Not all workers’ comp policies are created equal. Each quote is customized based on your business, number of employees, type of work, and claims history. Comparing quotes helps you:
- Find the best rate
- Ensure compliance with state laws
- Get adequate coverage for your specific risks
- Avoid overpaying for unnecessary features
Average Workers’ Compensation Insurance Cost
In 2025, the average cost of workers’ compensation insurance in the U.S. ranges between:
- $0.70 to $2.00 per $100 of payroll
That means if your business has a $100,000 payroll, you could pay between $700 to $2,000 annually—depending on the level of risk associated with your industry.
Sample Workers’ Comp Insurance Cost by Industry
| Industry | Payroll | Avg. Rate | Estimated Annual Cost |
|---|---|---|---|
| Retail Store | $100,000 | $1.00 | $1,000 |
| Office-Based Business | $100,000 | $0.75 | $750 |
| Landscaping Company | $100,000 | $1.80 | $1,800 |
| Restaurant | $100,000 | $1.50 | $1,500 |
| Construction | $100,000 | $2.00+ | $2,000+ |
Note: Rates vary based on state, claims history, and classification codes.
What Affects a Workers’ Compensation Quote?
When you request a quote, insurers calculate the premium using several factors:
1. Payroll Size
The more you pay in wages, the higher your premium. That’s because more payroll = more exposure to potential claims.
2. Job Classification Codes
Jobs are assigned a classification code that reflects their risk level. A construction worker will be rated higher (and cost more) than an office assistant.
3. State Requirements
Each state has its own workers’ comp laws. For example, California and New York tend to have higher average premiums than Texas or Florida.
4. Claims History
A clean record can help you qualify for lower rates. Frequent claims or past lawsuits can drive up your premiums.
5. Coverage Limits
Basic plans cover the minimum, but you can opt for higher limits or additional services like return-to-work programs, which may affect cost.
How to Get a Workers’ Compensation Insurance Quote
✅ 1. Use Online Quote Tools
Insurance marketplaces like NEXT Insurance, The Hartford, biBERK, and Simply Business let you compare quotes in minutes. Just provide basic info like:
- Number of employees
- Annual payroll
- Business type and location
- Industry classification
✅ 2. Work With a Licensed Broker
A broker can help you find competitive quotes and explain the fine print—especially if you’re in a complex industry like healthcare or construction.
✅ 3. Bundle Policies
Some insurers offer discounted bundles that include general liability, commercial property, and workers’ comp insurance in one package.
How to Lower Your Workers’ Comp Premium
Here are a few smart strategies to reduce your quote:
- Implement a safety program: Fewer accidents = lower premiums over time.
- Classify employees correctly: Avoid misclassification errors that lead to overpaying.
- Review payroll accurately: Don’t estimate too high—pay only for what you need.
- Shop around annually: Insurance rates change. Get new quotes every year to stay competitive.
Final Thoughts: Get the Right Workers’ Comp Quote Today
Securing the right workers’ compensation insurance quote isn’t just about checking a legal box—it’s about protecting your people and your business. The good news? Getting covered is easier and more affordable than many business owners think.
Whether you’re running a local restaurant, managing a remote tech team, or overseeing a construction crew, don’t wait for an accident to happen. Start by comparing quotes online, understanding your state’s requirements, and locking in the best coverage at the best rate.
