Best Workers’ Comp Insurance for Small Business 2024
Every state except South Dakota and Texas requires employers to offer workers compensation (and there are exceptions even for those two states). When considering workers’ comp coverage, small business owners should look for insurance companies that offer preventive services to reduce risk, a smooth premium audit process, and a strategy to help injured employees return to work.
Using our proprietary rubric focusing on customer service, convenience, offered policies, and the provider’s financial strength, we researched over 20 insurers to find the best workers’ compensation companies:
- The Hartford: Best overall provider for workers’ comp insurance
- Simply Business: Best for comparing quotes online
- Next Insurance: Best for construction and retail industries
- Nationwide: Best for claims management
- Thimble: Best for growing businesses
Best Workers’ Compensation Companies Compared
The Hartford: Best Overall Provider for Workers’ Compensation
Pros
- It offers online quoting.
- It has no down payments or monthly fees with The Hartford’s payroll billing process.
- It has an account portal for injured employees to manage medical claims.
Cons
- You may have to call to purchase a policy.
- It does not have an app for commercial lines.
- Salary cap varies between $2 million and $5 million for most industries.
Standout Features
- It can bundle workers’ comp with other coverages a small business needs, like a business owner’s policy (BOP), professional liability, and even commercial auto insurance.
- It offers a prescription program with minimum out-of-pocket expenses for the employee.
- It is the leading provider in employee benefit and disability insurance and has a large dataset on workplace injuries to accurately calculate premiums.
- It provides access to XactPAY® through the online account to manage and update payroll or change payment plan frequency.
Financial Stability: The Hartford is the oldest insurance company in America. The Hartford’s AM Best rating is A+ (Superior).
Every provider on this list is best for something, but here’s the deal: The Hartford offers nearly all the services offered by other companies in this roundup, like medical management, pharmacy support, expert claims adjusters, and risk management.
It offers numerous services for policyholders to reduce the risk of injury and help injured employees return to work quickly and safely. Plus, it features an accessible website for injured employees to manage their claims.
If you want to compare quotes, check out the only broker on this list, Simply Business. Or, if you want to purchase workers’ comp insurance online, then look into Thimble or Next Insurance.
The Hartford shares a simple online calculator that gives you an idea of the premium cost for workers’ comp insurance.
We received a sample quote for a lawn care company with five full-time employees for $10,137 annually. One factor in determining this quote was our estimated payroll. The Hartford offers a pay-as-you-go format: instead of using an estimated annual payroll to calculate the premium, this option uses real-time payroll data, resulting in more accurate payments.
If you are injured, The Hartford offers My Workers’ Comp Connection, a one-stop shop to help injured workers manage their claims. They can check the status of the claim, review payments, sign up for direct deposits, obtain a medical services card, and more. Users can also manage their accounts or file a claim online or over the phone, 24/7.
With the online account, you can change class codes, payroll amounts, or employer liability limits.
The Hartford has a network of 65,000 pharmacies across the country, a prescription benefit program to help reduce costs, and nurse case managers to help injured workers return to work. It also has an online provider database to make it easier for your employees to find a doctor. Medical bills can be submitted via fax or mail.
Simply Business: Best for Comparing Quotes Online
Pros
- It provides quick online quotes.
- It offers same-day coverage.
- You can purchase a policy online.
Cons
- It does not have a 24/7 call center for claims or customer service.
- Workers’ comp claims are handled by the provider.
- Providers share minimal information on medical management.
Standout Features
- It compares quotes for multiple lines of coverage, including workers’ compensation insurance.
- It tailor quotes in real time by adjusting limits and deductibles to make sure the coverage is right for you.
- The brokerage works with top-rated carriers to provide workers’ comp and other coverages.
- General and professional liability and inland marine insurance are available.
Financial Stability: Simply Business is owned by Travelers. AM Best rating of Travelers is an A++ (Superior).
It’s no secret that inflation is impacting the bottom line of businesses. A great way to save some money on your insurance premium is by comparing quotes from multiple providers—and Simply Business, a digital broker, lets you do just that.
After choosing the right coverage, you can then purchase a policy online. It even offers ghost policies to satisfy a contract or bid on a project. Its target customers are smaller businesses, including startups and ecommerce retailers, with one to three employees.
If you are a larger business or want to work with just one company, including for claims, a company like The Hartford may be a better fit for you.
We received a quote for $414 annually or $82.80 down and then $36.80 monthly for nine months. The policy was from biBERK and carried $100,000 for each accident injury, $100,000 per disease, and $500,000 per employee.
While Simply Business normally generates multiple quotes, for this article, we only received one. However, we were also given an option to call and speak with a licensed agent to find more coverage for the business elsewhere. The brokerage can work with you to find insurance, both online or over the phone.
Once you purchase a policy, you will receive an email from the provider with all of the policy documents and your certificate of insurance (COI).
Even though the provider manages the workers’ comp side of the policy when you have a claim, you have control over the policy through your Simply Business account. You can make changes, pay your bills, and file a claim.
Next Insurance: Best for Construction & Retail Industries
Pros
- You can save up to 10% when bundling workers’ comp with other coverage.
- It offers online premium audits with flexible timeline.
- You can get a quote and purchase a policy online.
Cons
- It does not have a 24/7 call center for claims.
- It offers minimal information available on medical management.
- Businesses that do more than 15% work on roofing or have serious OSHA violations in the last three years are ineligible.
Standout Features
- It’s targeted professions include contractors, general contractors, and lawn care.
- Median monthly cost for workers’ comp for a general contractor is $283. 69% of Next customers pay $100 or less per month for workers’ comp.
- Partnership with Gusto to track real-time payroll. When you pay employees, payroll data is shared automatically with Next to keep the premium accurate.
- EPLI automatically included with workers’ comp gives employers protection from lawsuits.
Financial Stability: Next Insurance has a solid financial position. AM Best rated Next Insurance an A- (Excellent).
Next Insurance has the best workers’ comp insurance for small businesses in the construction and retail industries. It has developed customized coverages specifically for those industries that take into account the risk, necessary limits, and support services that businesses need for general liability and BOP. As a benefit for contractors, through its app, you can generate and share proof of insurance almost instantly and at no added cost.
If knowing what type of medical management services are available is important, then consider Nationwide with its robust medical and claims management services.
Workers’ comp quotes are available online. Unfortunately, we were unable to obtain one due to some potential risks involved with the roofing side of our general contractor business. However, it does save all of the information entered, and an agent will call you within one business day. It will also let you know a specific reason why it could not provide a quote online so that you are ready when an agent calls.
The target business size for its workers’ comp is 1–20 employees, with a payroll limit of $1 million. Its available limits range from $100,000 per accident for bodily injury to $1 million.
While Next Insurance is unavailable 24/7, its app functions like a 24/7 call center. The premium audit process is entirely online. When the policy term is up, you will receive an email to complete the audit. If documents are needed, they can be emailed directly to Next. If no documents are required, then the entire premium audit is very quick, and results are available within minutes.
If a premium increase is necessary, the card on file will be charged within 30 days, and if it is a premium refund, then the card will be refunded within 30 days.
Next Insurance recently partnered with Gusto to offer pay-as-you-go workers’ compensation plans. This streamlined process gives you control over your cash flow—it helps you save money by limiting the risk of overpaying for your workers’ comp and then having to wait on the audit to get a refund. For more information on the partner, read our review of Gusto.
Nationwide: Best for Claims Management
Pros
- It has a 24/7 call center for claims.
- It is available in all nonmonopolistic states.
- It provides online premium audits.
Cons
- It does not have an app for commercial lines.
- It does not provide online quote for workers’ comp.
- You cannot purchase a policy online.
Standout Features
- 24/7 nurse triage line is staffed with nurses with a minimum of three years of acute care experience; if you call the triage line, you do not need to file a claim.
- It has a program that helps provide prescriptions with no out-of-pocket expense for injured employees.
- It offers loss-control services to mitigate risks and loss.
- Online search for local providers makes it easy for an injured employee to find and see a doctor quickly without having to wait as a new patient.
Financial Stability: Nationwide’s AM Best rating is A+ (Superior).
Nationwide, bolstering its support for workers’ comp, offers a state-by-state claims tool kit that helps small businesses respond to a claim. The kits include contact information, provider lists, state-specific forms, instructions on how to bill, and the next steps. Nationwide also has excellent customer service and 24/7 availability for a nurse triage line if a worker gets injured. Bilingual prescription cards, providers, and claims addresses are all available as well.
However, Nationwide doesn’t offer an app for claims. This lack of convenience and an underdeveloped digital experience hurt the provider’s score in our evaluation. If you are interested in a provider that lets you purchase the policy online and offers an app to manage your policy and claims, then consider Next Insurance—you can get a quote and a policy online and manage your policy through the app.
You can begin a quote on Nationwide’s website—but to finish it, you will need to contact the provider directly or reach out to a local agent.
Nationwide offers endorsements for its workers’ comp policy but does not provide specifics online. Workers’ comp requirements include medical reimbursement and lost wage payments.
In line with its lower-than-average complaints, Nationwide is No. 1 in customer satisfaction in J.D. Power’s 2023 survey. It has zero complaints, per the National Association of Insurance Commissioners (NAIC).
Nationwide has partnered with Coventry to provide a 24/7 nurse hotline. You can call the number if the worker’s injury is non-life-threatening to receive treatment direction and assistance in filing the claim with Nationwide on your behalf.
Thimble: Best for Growing Businesses
Pros
- It offers flexible policy terms.
- The site is easy to navigate and use.
- It offers affordable policies.
Cons
- It provides minimal details on medical management services.
- Claims are managed by another party.
- It is difficult to reach anyone over the phone.
Standout Features
- It has an app to easily manage your policy and claims.
- It offers multilingual 24/7 claims reporting for workers’ comp.
- It offers return-to-work programs to ease the transition.
- It partners with top-rated carriers.
Financial Stability: Thimble works with A- to A (Excellent) rated companies, and the workers’ comp policy is underwritten by Employers Insurance Company of Nevada (EICN). AM Best’s rating of EICN is an A- (Excellent).
Thimble has developed a very intuitive and easy-to-use website and app to manage your policy. Through either platform, it provides a quick and smooth online quote system for workers’ comp. From there, you can change coverages, add additional insureds, generate a COI, and file a claim.
The company is a great option for anyone who has a growing business that may not need workers’ comp just yet, but likely will in the future. Through the app, you can get a quote and add workers’ comp almost instantly to your policy or increase the limits at any time.
One downside to Thimble is that it is not an actual carrier, so programs like medical management or return to work are unavailable. Likewise, it doesn’t handle claims. It is very difficult, if not impossible, to reach Thimble’s general customer support line, which is only available on weekdays. If you want a traditional carrier that provides online quotes and handles claims, consider Next Insurance.
We received a quote for a two-person operation in Texas. The cost was $75.58 monthly and included a $10 processing fee. Or if you prefer an annual payment, then the policy cost would be $787.
The policy carried limits of $1 million per injury and $1 million per employee. The employer’s liability insurance was automatically included in the workers’ comp quote. You can then purchase the policy online.
Thimble is available in all nonmonopolistic states and works well for smaller businesses with the intent to grow. You can add workers’ comp to an existing policy right through the app whenever you reach your state’s requirement for carrying the coverage.
In terms of workers’ comp services, some of the specifics are difficult to find. However, it does offer a 24/7 multilingual claims line for workers’ comp claims reporting, or you can also file the claim in the app. It has partnered with nonprofits to offer off-site transitional work for injured employees.
How We Evaluated Providers of the Best Workers’ Comp Insurance for Small Businesses
We determined which insurance companies would be the best for workers’ comp using our in-house proprietary evaluation system. We reviewed over 20 providers and presented the six with the highest scores. In evaluating, we focused on the customer’s needs. We also paid particular interest to convenience, financial ratings (AM Best), customer service, types of policies offered, and the overall experience as a policyholder with a specific provider.
Frequently Asked Questions (FAQs)
Workers’ compensation insurance is coverage that pays medical bills, rehabilitation costs, and lost wages for employees injured on the job or who experience a work-related illness. It can also provide protection if the injury leads to litigation. You can obtain workers’ compensation insurance from a state fund, an assigned risk pool, or workers’ comp insurance carriers.
Yes, you do, because every state—except for South Dakota and Texas—requires workers’ comp. However, even in those states, industry-specific requirements for workers’ comp may exist. Remember, every state is different and classifies workers differently. It is important to know your specific state requirements.
Some workers are exempt from workers’ comp, meaning they are ineligible for the coverage. Generally, these are immediate family members of the business owner; independent contractors (since they are, technically, self-employed); and LLC members and corporate officers, though this varies depending on the state law.
The answer depends on the outcome of the formula providers use to calculate the cost:
Your class code and payroll must be correct to get an accurate price. Because the premium is directly related to the payroll, many businesses use a pay-as-you-go option tied to your payroll.
A premium audit determines whether the estimated payroll ended up being correct or if an adjustment to the premium is required. At the end of your workers’ compensation policy period, your provider will usually perform a premium or payroll audit. Many state regulations require this.
Workers’ comp is only for employees or persons who could be categorized as insureds, so it doesn’t cover injuries to customers or another third party on business property. For employees, the policies exclude coverage for injuries from incidents that were intentional or the result of illegal activities or intoxication.
Bottom Line
Workers’ compensation is essential because it takes care of injured employees and protects your business. It is also required in every state except for South Dakota and Texas—and not carrying it can result in penalties for your business. We evaluated over 20 insurers to find the six best workers’ comp insurance for small businesses and determined that The Hartford is the best overall.
