Workers' Compensation Insurance
Workers' compensation pays for medical treatment and a portion of lost wages when an employee is injured or becomes ill because of their job, regardless of who was at fault. In exchange for this no-fault coverage, employees generally give up the right to sue their employer directly for the injury. Almost every U.S. state requires workers' comp once a business has even one employee (a few states carve out exceptions for very small owner-only businesses), and it's one of the most heavily enforced insurance requirements — missing coverage can mean stop-work orders and personal liability for the owner.
Workers' Comp: what it costs, what it covers, who needs it
Rates vary by state, revenue, and claims history — always compare multiple quotes.
Required in nearly every state once you have employees — thresholds and exceptions vary by state, so confirm your state's specific rule.
What's covered
- Medical treatment for a work-related injury or illness
- A portion of lost wages while the employee recovers
- Disability benefits for injuries causing lasting impairment
- Death benefits and funeral costs for fatal workplace accidents
- Employer's liability (legal defense if an employee sues around the edges of the no-fault system)
What's excluded
- Injuries to independent contractors (unless separately elected)
- Injuries from intoxication, horseplay, or self-inflicted harm
- Commuting accidents (generally, with limited exceptions)
- Injuries to the public — that's general liability's job
The requirement doesn't scale in gradually with headcount — it applies in full at employee number one in nearly every state.
What drives the price
- State-set base rate per job classification code
- Total annual payroll (premium is rated per $100 of payroll)
- Your business's claims/experience modifier over time
- Job risk level — office staff cost far less to cover than field technicians
Real claim example
A field technician strains their back lifting equipment and is out of work for six weeks.
Workers' comp covers physical therapy and roughly two-thirds of the technician's wages during recovery — about $12,000 total.
Workers' Comp is legally required for businesses of any size. At $45–$180/mo, it is one of the most cost-effective ways to protect against a potentially six-figure claim.
Where to get a quote
We don't have partnerships with these providers yet — these are direct links to their public sites, not affiliate links.
Digital-first small-business insurer with instant online quotes across most trades.
Long-established commercial carrier with broad small-business coverage lines.
Well known for commercial auto, with bundled small-business coverage options.
Workers'-comp specialist with usage-based pricing for small employers.
Online broker comparing quotes across multiple carriers in one place.
FAQs
Do I need workers' comp if I only have 1-2 employees?
In most states, yes — the requirement typically kicks in at your very first employee. A few states set a small headcount threshold, so check your state's rule.
Am I covered if I'm the only owner and have no employees?
Owners are often excluded by default and can elect to opt in for their own coverage — worth doing if you do the physical work yourself.
How is my premium calculated?
It's based on your payroll, multiplied by a rate tied to your job classification code, then adjusted by your claims history (experience modifier).