What Is Workers' Compensation Insurance?

Workers' compensation insurance covers medical expenses, lost wages, and rehabilitation costs when an employee is injured or becomes ill due to their job. It also protects employers from lawsuits related to workplace injuries.

Is Workers' Comp Required?

Workers' compensation is legally required in almost every state once you have employees. Requirements vary by state — some require it with just one employee, others at three or five. Penalties for non-compliance include fines, criminal charges, and personal liability for injuries.

What Does Workers' Comp Cover?

Medical expenses — doctor visits, surgery, prescriptions, physical therapy
Lost wages — typically 60-70% of salary during recovery
Disability benefits — temporary or permanent disability payments
Rehabilitation — vocational retraining if needed
Death benefits — funeral costs and survivor benefits
Employer liability — legal defense if an employee sues

How Much Does Workers' Comp Cost?

Workers' comp premiums are based on:

Classification codes — your industry and job types
Payroll — total annual payroll by classification
Experience modification rate (EMR) — your claims history vs. industry average
State rates — each state has its own rating system

For low-risk office jobs, expect $0.20–$0.50 per $100 of payroll. High-risk trades like roofing or logging can be $5–$15+ per $100 of payroll.

Compare Top Workers' Comp Carriers

Workers comp rates vary significantly between carriers. See how the top options compare:

Pie Insurance vs biBERK — Two budget workers comp specialists compared
Employers vs Hartford — WC specialist vs full-service carrier
Employers vs Travelers — Workers comp specialists head-to-head
Next Insurance vs Pie Insurance — Digital carriers compared on WC and GL
Progressive vs Pie Insurance — Traditional vs WC-focused carrier
Travelers vs Liberty Mutual — Two major carriers compared on WC and more

Cheapest workers comp: Pie Insurance and biBERK start around $20/mo. Compare WC rates →