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How Much is Workers Comp Insurance? Cost & Quotes From $11

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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When a worker suffers a bodily injury or illness, workers’ compensation insurance kicks in to pay for things like medical bills and lost wages. This type of insurance is mandated by law in virtually every US state, except for sole proprietors with no employees or self-employed individuals

The US Department of Labor sets out requirements that determine what these insurance policies should cover. They also have several programs that are aimed at preventing work-related injuries and illnesses through proper training. If you are a business owner you might ask how much is workers comp insurance? The answer to that some policies can start as low as $12 per month. Of course, the pricing of workers’ comp can be more expensive for some businesses.

In this article, we will break down common questions and concerns that many have about workers’ compensation insurance. These include:

  • Cost of workers comp per employee

  • Workers comp rates by state

  • Workers compensation rates by class code

  • Factors that affect the cost of workers compensation insurance

  • What is a workers’ comp cost calculator?

  • What types of benefits are covered by workers’ compensation insurance?

  • What is a monopolistic state?

  • What is a workers’ comp ghost insurance policy?

How Much Does Workers Comp Cost Per Employee?

So you want to know how much is workers comp insurance for one employee? On average, workers’ comp costs $377 per employee to employers nationwide. This represents less than 1% of total payroll expenses on average. It is easy to find affordable workers comp coverage by looking at our guide for best workers comp insurance companies of 2023

When someone is trying to figure out “how much does workmans comp cost?” they will come to find that the average cost of $377 per employee might be different from their own experience. This is okay, the situation of every employer and employee is unique. 

How Much Does Workers Comp Cost For Small Business?

How much does workmans comp cost for small businesses? That answers varies depending on the number of employees and how risky the jobs they do are.

Small business workers comp insurance cost will typically be less because they will have fewer active employees driving up payroll costs. Small businesses typically spend between a few hundred to a few thousands dollars every year on workers’s comp.

However, everyone's situation is different, so be sure to do your research so you can pick the best policy. The answer to anyone asking “how much is workmans comp?” will always depend on their personal situation and the unique risks of their business. 

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Workers Comp Rates by State

Workers’ compensation rates will vary by state. The reason these rates vary by the state is that each has a unique claims history with different industries and its own economies. They use an index rate, which tells you the cost per $100 in payroll. A rate of 2.44 would mean that a business with $100,000 in payroll spends $2,440 yearly on workers' comp premiums.

How much is workers compensation insurance? To answer this adequately, we must examine the cost of workers' compensation insurance in all 50 states.

StateIndex Rate
New Jersey2.44
Hawaii2.27
California2.26
New York2.15
Lousiana2.13
Vermont1.98
Wyoming1.86
Wisconsin1.67
Maine1.67
Connecticut1.64
Rhode Island1.62
Minnesota1.55
Missouri1.54
Iowa1.52
Montana1.46
Idaho1.43
Oklahoma1.41
New Hampshire1.39
Illinois1.39
Alabama1.38
Alaska1.37
South Carolina1.35
Delaware1.34
Washington1.31
South Dakota1.30
Pennsylvania1.27
New Mexico1.27
Florida1.26
Nebraska1.25
North Carolina1.16
Georgia1.15
Massachusetts1.05
Maryland1.04
Tennessee1.03
Kansas1.02
Virginia1.01
Nevada1.00
Michigan1.00
Mississippi0.98
Colorado0.93
Oregon0.93
Texas0.88
Arizona0.87
Utah0.86
Kentucky0.83
Ohio0.77
Indiana0.86
Arkansas0.65
West Virginia0.63
North Dakota0.58


Workers Compensation Rates by Class Code

Workers compensation insurance quotes will be significantly affected by an industry's class code. That said, another way to figure out how much is workers comp insurance for one employee is to use the class code rates imposed in the state where you’re doing business. 

As an example, we will use some of the notable class codes of North Carolina to illustrate how the rate varies. There are nearly 800 unique class codes developed by the National Council on Compensation Insurance. It would take too much time to explain them all, as each state has an average of 327 classes with over 1000 different descriptions.

Industry GroupCodeJob DescriptionRate
011438Smelting - Electric Process & Drivers$6.48
020042Landscape Gardening & Drivers$7.19
038748Automobile Sales Persons$0.95
040008Farm - Vegetable & Drivers$3.33
051005Coal Mining$11.07
069403Garbage Collection Drivers$11.93
076826US ACT Marina & Drivers$7.31