Best Workers’ Compensation Insurance Companies

biBERK Insurance tops our list due to ease of use and potential savings

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As a business owner, it’s your responsibility to provide a safe work environment for your employees, but accidents and injuries may still happen. According to the Bureau of Labor Statistics, 2.1 million workers in private industry were injured on the job in 2020. 

To protect your staff, workers’ compensation insurance is essential and is even a legal requirement in most states. It provides financial support and medical benefits to employees who are injured or who become sick due to their employment. In addition, it prevents you from paying costly expenses; the average cost per workers’ compensation claim is $42,008. 

We looked at 19 top workers’ compensation insurance companies to help you find an insurer for your business. We selected the best companies based on their coverage options, reputations, and ratings with AM Best, the credit rating agency that focuses on the insurance industry. 

Best Workers’ Compensation Insurance Companies

Best Overall : biBERK Insurance Services


biBERK

biBERK

Why We Chose It

biBERK Insurance Services is our choice as the best overall workers’ compensation insurer because users can purchase policies online in a matter of minutes, bundle workers’ compensation with other business insurance policies, and save a significant amount of money over buying plans from other companies. 

Pros & Cons
Pros
  • Save up to 20% compared to other companies

  • Top-rated insurer

  • Get a quote entirely online

Cons
  • No additional discounts for bundling policies

  • Seasonal workers may not be covered in all states

Overview

As part of Warren Buffett’s Berkshire Hathaway Group, biBERK Insurance Services combines decades of experience with a technology-driven approach to insurance, allowing you to get a policy within minutes. Business owners can use biBERK’s platform to get a price quote and purchase workers’ compensation insurance entirely online, without ever having to talk to a representative or go through extra hurdles. Your exact quote will vary based on factors like industry, location, and coverage limits.

biBERK isn’t an insurance broker or middleman; it insures businesses directly, so it’s able to offer lower rates than some other companies. According to the company, its rates are up to 20% less than you can get with policies from other companies. 

It does offer other insurance products, such as general liability, professional liability, and umbrella insurance. However, it does not offer any discounts for bundling policies. 

biBERK offers workers’ compensation insurance in almost all states. The only exceptions are North Dakota, Ohio, Washington, and Wyoming. Berkshire Hathaway Group has an “A++” rating from AM Best, its highest designation.

Best for Micro-Businesses : CoverWallet


CoverWallet

CoverWallet

Why We Chose It

CoverWallet is best in our review for startups, people with side gigs, and microbusinesses. You can get a policy even if you have just one part-time employee, and your coverage can start immediately. 

Pros & Cons
Pros
  • Policies available for just one employee

  • Workers’ compensation can be bundled with professional and general liability coverage

  • Coverage can start immediately

Cons
  • Instant, online quotes not available for everyone

  • Pay-as-you-go options not always available

Overview

For micro-businesses—companies with fewer than 10 employers—CoverWallet is an excellent option for workers’ compensation insurance. CoverWallet allows you to get coverage for just one employee if you wish, even if that worker is part-time, and you can bundle workers’ compensation insurance with professional or general liability coverage, too. 

Depending on where you live, your industry, your past claims history, and other factors of your business, you may be able to get an instant quote online. However, that may not be an option for everyone, and some users may have to call and speak to a representative to get an insurance quote. 

When you submit your information, CoverWallet will match you with one of its insurance partners. You may be eligible for pay-as-you-go premiums, rather than making upfront payments based on projected payroll. If satisfied with your quote, you can contact CoverWallet to activate your policy and get covered right away. 

CoverWallet is a subsidiary of the Aon Corporation.

Best for Medical Providers : The Hartford


The Hartford

The Hartford

Why We Chose It

The Hartford stands out as the best choice for medical providers because of its expertise working with outpatient offices and its unique benefits. Under your plan, your workers get access to dedicated case managers and pharmacy networks, helping them get the care they need when they need it most. 

Pros & Cons
Pros
  • Workers have access to experienced nurse case managers

  • Specifically offers needlestick protection

  • Pay-as-you-go billing options

Cons
  • Does not offer medical malpractice insurance

  • Not all users can purchase policies online

Overview

Established in 1810, The Hartford is well-known for its service and reliability. In fact, it’s the second-largest workers’ compensation insurer in the country based on direct written premiums. It’s our top pick for medical providers as it has experience catering to healthcare professionals, insuring over 105,000 outpatient small businesses nationwide. 

As a medical provider, workers’ compensation coverage is especially important. You may face risks like needlestick injuries, injuries from moving patients, or examining patients under the influence of medications. 

Workers’ compensation insurance from The Hartford includes a preferred medical provider network and over 65,000 U.S. pharmacies where your workers can get necessary care. They’ll have access to nurse case managers to help coordinate their care, and you can take advantage of pay-as-you-go billing options. 

The Hartford offers multiple insurance products, including general liability and cyber insurance. However, it does not have medical malpractice insurance, so you’ll have to work with another company to get coverage

While some users can purchase insurance policies online, not everyone is eligible. You may have to call an insurance specialist to get a quote and to complete your enrollment. 

The Hartford has an “A+” rating from AM Best. 

Best for Professional Offices : Progressive


Progressive

Progressive

Why We Chose It

If you run a professional office, you likely have multiple insurance needs. That’s why Progressive is our choice for the best workers’ compensation insurer for professional offices. Not only does it offer affordable workers’ compensation insurance, but it allows you to purchase professional liability and other policies as well.

Pros & Cons
Pros
  • Other business insurance policies available

  • Update your policy at any time

Cons
  • Workers’ compensation insurance offered by a partner carrier

  • Payment terms and down payment requirements can vary by insurer

Overview

In professional offices, workers’ compensation is still important. There are unique issues that your employees may face, such as carpal tunnel syndrome.

Progressive is an excellent choice for professional offices for workers’ compensation because of its reputation, the ability to easily combine other coverages, and great prices.

Progressive’s policies are affordable. According to the company, the average cost of a new policy starts at $46 per month for professional liability coverage and $86 per month for workers’ compensation insurance. 

With Progressive, you can bundle workers’ compensation insurance with professional liability insurance, general liability, commercial auto insurance, and a business owner’s policy. You can change and adjust your policy at any time. 

However, you should know that your workers’ compensation policy isn’t directly through Progressive. Instead, Progressive will connect you with a third-party carrier. Each carrier has its own payment terms and requirements, so you may not have a pay-as-you-go option, and you may have to make a down payment to activate your policy. 

Progressive has an “A+” rating from AM Best.

Best for Construction and Contractors : Nationwide


Nationwide logo

Nationwide logo

Why We Chose It

Nationwide has a suite of insurance products uniquely designed for the construction industry, making it our top choice for construction and contractors. Along with workers’ compensation, you can bundle other insurance policies like business liability and equipment breakdown to protect your business. 

Pros & Cons
Pros
  • Available to small and large businesses

  • Workers’ compensation can be bundled with business liability, general liability, and employment practices liability

  • Specialized support and services for the construction industry

Cons
  • May need to speak with a representative for an accurate quote

  • Available discounts and rates can vary by location

Overview

Nationwide is one of the largest insurance companies in the country and it offers workers’ compensation insurance for small and large businesses. It has insurance options specifically designed for construction and contracting businesses that can be bundled along with workers’ compensation coverage, such as general liability, business auto, construction equipment insurance, and equipment breakdown coverage. 

As a Nationwide customer, you have access to a suite of free business resources, including fleet safety seminars, courses on preventing slips and falls, and tips on handling payroll and taxes. 

While some users can get a quote online, rates and discounts can vary by location and area of specialization. To get an exact quote, you may want to call Nationwide directly and speak with a representative. 

Nationwide has an excellent reputation and a history of success and customer satisfaction. The company was founded in 1926 and has an “A+” rating from AM Best. 

Best for Household Employers : GTM Payroll Services


GTM Payroll Services

GTM Payroll Services

Why We Chose It

As one of the only national insurance brokers for domestic workers, GTM Payroll Services is our selection for the best workers’ compensation company for household employers. You can purchase workers’ compensation coverage separately or bundle it with payroll and tax management services to streamline your household operations. 

Pros & Cons
Pros
  • Available across the U.S.

  • Take care of your payroll services with the same company

  • Online client portal

Cons
  • Not rated by AM Best

  • Will need to speak to a representative for full details

Overview

If your family has hired domestic workers like a nanny or adult caregiver, you may have to get workers’ compensation coverage for that employee. Workers’ compensation requirements for household workers can vary from state to state, so there are very few national providers. 

One highly regarded resource is GTM Payroll Services, a licensed insurance broker. With GTM, workers’ compensation insurance can be bundled with payroll and tax services. However, you cannot purchase it alone and must be a payroll client.

GTM Payroll Services has been in operation since 1991. Today, it processes more than $1 billion in payroll every year for more than 44,000 employees who work for businesses and families nationwide. 

As a broker, GTM will shop around to find coverage that works for your needs and includes pay-as-you-go premiums based on your actual payroll. To get a policy, you will need to call GTM Payroll Services directly; you can’t sign up for workers’ compensation coverage online. 

GTM Payroll Services is not rated by AM Best.

Frequently Asked Questions

What Is Workers’ Compensation Insurance?

Unfortunately, accidents do happen, no matter how many precautions you take to ensure your workplace is safe. Workers’ compensation insurance provides business owners with protection from claims by employees who experience work-related injuries or illnesses. 

Workers’ compensation typically covers the employee’s medical expenses, rehabilitation expenses, and a portion of their lost wages. If an employee passes away while working, workers’ compensation insurance will also pay for funeral expenses.

Who Is Exempt From Workers’ Compensation Insurance?

Workers’ compensation requirements vary by state. However, sole proprietorships and partnerships generally don’t have to carry workers’ compensation insurance until they hire employees who aren’t partners. Employees are considered to be people performing services for the company for pay, even if they’re minors or non-citizens.

Do I Need Workers’ Compensation Insurance for One Employee?

In most states, employers who have at least one part-time employee must have workers’ compensation insurance. There are some states, such as Alabama, where coverage isn’t required for businesses with four or fewer regular employees, but those are the minority. Texas is the only state where workers’ compensation coverage is optional for employers, with some exceptions. 

To learn about the requirements in your area, visit your state’s workers’ compensation department website.

What Is a Workers’ Compensation Insurance Audit?

When you purchase workers’ compensation insurance, your policy is valid for one year, and your premium is typically based on the annual compensation you anticipate paying that year. During the workers’ compensation insurance audit, also known as a payroll audit, auditors will review how much your payroll changed from the projected amount at the beginning of the year so the final premium can be adjusted accordingly. In some states, workers’ compensation insurance audits are a mandatory legal requirement.

What Is a State Fund?

State funds are state-sponsored workers' compensation insurance programs. Some states are monopolistic, meaning there is no private workers’ compensation insurance available. States with monopolistic insurance requirements include North Dakota, Ohio, Washington, and Wyoming.

In monopolistic states, you cannot shop for the best deal and you cannot provide coverage for out-of-state employees. Instead, you’ll have to purchase a separate insurance policy for them from the state in which they work. You may also have to purchase a separate employer liability policy to cover you against lawsuits and other workers’ compensation case costs that result from an injured employee. 

In other states, there is a competitive state fund where you can choose insurance from the state or a private carrier. With this option, you can choose the coverage that fits your needs and you can comparison shop to get the best deal, though the state fund may be a better option for new or hard-to-insure businesses.

How Much Is Workers’ Compensation Insurance?

How much you’ll pay for workers’ compensation insurance is dependent on your state, business size, industry, employees’ type of work, and your claims history. 

Your cost is calculated per $100 of payroll, so the larger your payroll, the higher your workers’ compensation costs. 

If you don’t have a past history of claims, you’ll have a low experience modification number, or “mod.” If you have a history of claims, your number will be higher. A number over “1.00” reflects a history of claims. 

The National Council on Compensation Insurance has a database of over 700 class codes that describe jobs’ risks and has a corresponding rate. For example, a copywriter’s position is less risky than a welder’s, so workers’ compensation insurance will likely cost less. 

To estimate your costs, use this calculation: 

Worker’s class code rate x experience modification number x (Payroll / $100) = Premium

According to the National Academy of Social Insurance, employer costs for workers’ compensation insurance range from $0.55 per $100 of covered payroll in Texas to $2.25 per $100 of covered payroll in Alaska.

Methodology

To select the top six workers’ compensation insurance companies, we researched major insurers and identified 19 well-known companies that specialize in different industries. We evaluated each company on its business options, transparency, available discounts, ease of obtaining a quote, and its AM Best rating. Particular emphasis was placed on a company’s AM Best rating; companies with less than an “A” rating were disqualified. 

The one exception was GTM Payroll Services. There are no other national companies that offer workers’ compensation coverage for nannies and domestic workers. Because GTM is a broker and connects customers with insurance partners, we decided to include it on the list even though it has not been ranked by AM Best. 

Article Sources
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