Workers' Compensation Cost

What does workers' compensation insurance cost?

In 2024, the median monthly cost of workers' compensation insurance for new Progressive Commercial customers was $80. That means most people paid around this amount. The average rate was higher — $125 per month — because a few businesses had much more expensive policies.

Workers' comp prices are calculated differently than other types of business insurance because each state has its own rules. It can cost more because it covers medical expenses and lost wages if someone gets hurt or sick because of their job.

Want to learn what you'll pay? Start an online quote to see your customized rate for workers' comp through Progressive Commercial.

What factors affect your workers' comp insurance cost?

Several factors influence your workers' compensation insurance cost, including your profession, payroll, claims history, and location:

Your profession

Some professions are higher risk than others. To set fair prices, the National Council on Compensation Insurance (NCCI) assigns a class code to each type of job. This rating is based on how risky the work is and helps determine workers' comp cost. The codes and rates can vary by state.

More dangerous jobs usually cost more to insure. For example, an electrician might have a more expensive policy than an accountant because they have a greater chance of getting hurt on the job.

Your payroll

Insurance companies calculate your annual workers' comp insurance cost per $100 of payroll. The higher your payroll, the more you can expect to spend. Be prepared to provide this information when getting your workers' compensation quote.

Your claims history

Has your business faced workers' compensation claims in the past? If so, you could see an increase in your workers' comp cost.

Insurance companies usually review your claims history and consider the number and severity of past accidents to help determine your rate.

Your location

Each state has a unique set of workers' compensation laws, so rates vary depending on where you live. Your state determines the number of employees you need to insure, the types of employment workers' comp covers, purchasing options, benefit payments, and more. For example, some states might require workers' comp for self-employed businesses and contractors.

Browse workers' comp insurance by state to learn about coverage where you live.

How do I get cheap workers' comp insurance?

Finding affordable workers' comp insurance can be challenging because many factors are out of your control. However, you can get a better rate by minimizing your risk of a claim. Fewer accidents typically mean a lower workers' comp insurance cost.

Here are a few tactics that can help small businesses get the lowest rates for workers' compensation insurance:

• Employee training: Properly training your employees on basic job functions could reduce their risk of injury. For example, a restaurant owner might train the kitchen staff on safe food preparation to avoid cuts and burns.
• Safety standards: Educating your employees about workplace safety might prevent slips, falls, and other bodily harm. For example, a manufacturing business might educate its workers on proper lifting and carrying techniques.
• Property maintenance: Providing a safe and healthy work environment can reduce employee illnesses and injuries. These improvements could include air duct cleaning, routine building inspections, and snow removal.

Progressive Commercial can connect you with competitive rates for workers' compensation insurance. Start a quote online to see how much you'd pay for workers' comp.

How is workers' compensation insurance cost determined in monopolistic states?

In most places, workers' compensation is sold through private insurance companies. But in a few monopolistic states, it's run by the state instead. The cost is still based on similar factors, like your business type and payroll.

One important difference is that workers' comp in monopolistic states usually doesn't include employers liability insurance (ELI), which helps protect you if someone sues over a workplace injury. If you want this coverage, often called stop gap insurance, you'll need to buy it separately from a private company. That means your total cost depends on two quotes: one from the state for workers' compensation and one from your insurer for ELI.

Get your customized workers' comp rate today

Progressive Commercial partners with select insurance companies to provide workers' compensation insurance. Our licensed professionals can walk you through this process and connect you with the right coverage for your business.

Call us today or get a quote online to learn your workers' comp cost.