Workers’ compensation insurance covers lost wages, medical bills, and rehabilitation for employees who are injured on-the-job or suffer a work-related illness. This type of coverage also typically provides liability protection for the business, since workers agree not to sue in exchange for the benefit. In most states, workers’ compensation insurance is required for companies with one or more part-time or full-time employees.
The best workers’ compensation insurance provider for you will depend on your industry and the size of your business, and to get the lowest premium, you’ll need to compare personalized quotes. To narrow down your options, we evaluated companies based on their reputation for customer service, financial strength, policy offerings, available resources and services, and other features. Read on for our expert-chosen list of the best workers’ compensation insurance providers.
The Best Workers' Compensation Insurance Companies of 2021
- Best Overall: Travelers
- Best for Small Businesses: Next Insurance
- Best for Medical Offices: The Hartford
- Best for High-Risk Industries: Nationwide
- Best Customer Service: Chubb
- Best for Quick Coverage: biBERK
Best Overall : Travelers
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Travelers
Why We Chose It: Travelers has a great reputation for financial strength and is the top writer of workers’ compensation policies in the U.S., providing coverage for any industry.
A++ financial strength rating from AM Best
Fewer than average number of complaints with the NAIC
Provides safety resources and in-house medical professionals
About average ranking in J.D. Power’s 2020 Small Commercial Insurance Study
No online quotes
Founded in 1853, Travelers is the top writer of workers’ compensation policies in the nation by market share, and the insurer provides unique solutions for each industry. Travelers offers safety resources to help companies mitigate risk, and when it’s time for your employee to return to work after a claim, the team of nurses and medical professionals help to make that transition as smooth as possible. Travelers also has an A++ financial strength rating from AM Best, so you can trust their ability to pay claims.
In addition to workers’ compensation insurance, Travelers offers a variety of other types of insurance for businesses, including general liability insurance, commercial auto insurance, and umbrella insurance. The biggest downside is that you can’t get a quote or apply for a policy online; you’ll need to contact a local agent.
Travelers has less than half the average number of complaints for a company of its size with the National Association of Insurance Commissioners (NAIC), indicating relatively strong customer satisfaction with the claims process, even though their overall score in J.D. Power’s 2020 Small Commercial Insurance Study was just average.
Best for Small Businesses : Next Insurance
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Next Insurance
Why We Chose It: Next provides an easy and affordable way to buy workers’ compensation insurance for small businesses along with discounts for bundling their products.
Policies backed by Munich R.E., rated A+ for financial strength from AM Best
Easy online quotes and application
10% discount for bundling policies
Fewer resources than other companies for reducing risk
Not rated by J.D. Power
If you’re an independent contractor or you only have a few employees, you might find that Next Insurance can offer you an affordable workers’ compensation policy that is easy to obtain. Policies start at $14/month and you can look up quotes and apply for coverage online in as little as 10 minutes. You can also add other types of business insurance such as general liability insurance and commercial auto insurance and get a 10% discount for bundling your policies.
Next Insurance is a startup founded in 2015 but their policies are backed by Munich R.E. which has an A+ financial strength rating from AM Best. Next Insurance is not rated by J.D. Power, but customer reviews about the company are generally favorable. However, since Next Insurance is a smaller insurer, they don’t provide the same safety resources or employ medical staff like some other companies. As such, Next Insurance is ideal for small businesses that don’t need the extra support.
Best for Medical Offices : The Hartford
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The Hartford
Why We Chose It: The Hartford has expertise in providing insurance to medical businesses, a strong financial strength rating, and a great reputation for claims satisfaction.
A+ financial strength rating from AM Best
Nurse case managers
Access to free prescriptions and preferred providers
Lower than average ranking in J.D. Power’s 2020 Small Commercial Insurance Study
Founded in 1810, The Hartford is the second largest provider of workers’ compensation policies by market share. The insurer has specific experience insuring medical businesses, providing coverage to more than 105,000 medical offices across the country.
When filing a claim, your employee will have access to a nurse case manager, a network of medical providers, thousands of pharmacy locations offering no out-of-pocket costs, and reimbursement for needle stick testing. And you can trust The Hartford to pay claims with good service as well; the provider has an A+ financial strength rating from AM Best and a much fewer than average number of complaints with the NAIC for a company of its size. However, it’s important to note that The Hartford has a below-average customer satisfaction rating in J.D. Power’s 2020 Small Commercial Insurance Study.
You can start a quote online, but some businesses may be required to speak to an agent to complete the application. You may be eligible for a discount if you bundle your workers’ compensation policy with professional or general liability insurance, commercial property insurance, or business income insurance.
Best for High-Risk Industries : Nationwide
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Nationwide
Why We Chose It: Nationwide has the robust resources needed to support high-risk businesses along with great financial strength ratings.
A+ financial strength rating from AM Best
Nurse triage hotline
One-time prescription processing prior to establishing a claim
Lower than average ranking in J.D. Power’s 2020 Small Commercial Insurance Study
Accurate quotes require speaking to an agent
Nationwide provides specific solutions for the construction industry, one of the highest-risk industries, along with comprehensive resources and support for any industry. Founded in 1926, Nationwide is a reputable provider with an A+ financial strength rating from AM Best and a fewer than average number of complaints for a company of its size with the NAIC. The company offers a bundling discount for adding other policies such as professional liability or business auto coverage.
What’s most appealing about Nationwide is the availability of resources and support. As a policyholder, you’ll get access to educational materials such as safety seminars, advice from the 24/7 nurse triage hotline, free one-time prescription processing prior to establishing a claim, and Nationwide’s unique Successful Return-to-Work program.
While you can start a quote online to get an idea of your premium, you’ll need to speak to an agent to get an accurate quote and finish enrollment.
Best Customer Service : Chubb
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Chubb
Why We Chose It: Chubb was top-rated in J.D. Power’s 2020 Small Commercial Insurance Study and fewer complaints with the NAIC than average for a company of its size.
Full suite of business insurance products and customized policies for businesses of all sizes
Contact within 24 hours for lost time claims
Fewer complaints than average with the NAIC
No online quotes
Founded in 1882, Chubb is one of the top business insurance providers by market share and has a fantastic reputation for both customer service and financial strength. Chubb has an A++ financial strength rating from AM Best and is the top-rated provider in J.D. Power’s 2020 Small Commercial Insurance Study. What’s more, the company’s complaint index with the NAIC is only 0.6, indicating fewer complaints than average for a company of its size. Chubb is also committed to responding to customers within 24 hours for lost time claims and provides easy online claims reporting and management.
Employees will have access to a preferred provider network for affordable care, and there’s a Return-to-Work program that helps keep costs low. Furthermore, Chubb offers a range of insurance products to meet the needs of business owners. You can add worker’s compensation to the Chubb business owner’s policy for broad protection, and supporting products such as commercial auto insurance are also available. This allows for a great degree of customization, but you’ll need to speak to an agent to get a quote and apply for a policy.
Best for Quick Coverage : biBERK
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biBERK
Why We Chose It: biBERK, a Berkshire Hathaway company, offers direct insurance with savings up to 20% compared to competitors and an easy online quote and application process that takes five minutes.
A++ financial strength rating from AM Best
Very few complaints with the NAIC in recent years
Quick and easy online application process
No bundling discounts
Fewer resources than other companies
Not available in all states
If you want to secure coverage online without having to speak to an agent, biBERK may fit the bill. It uses an automated, online system for generating quotes and issuing policies and since biBERK provides insurance directly, the company claims it can save you up to 20% when compared to competitors. However, biBERK doesn’t offer additional bundling discounts, even though they do offer a range of other insurance products.
Although biBerk has only been around since 2015, Berkshire Hathaway was founded in 1839 and has an A++ financial strength rating from AM Best and very few complaints with the NAIC in recent years. The company’s complaint index for 2019 was only 0.07, the lowest of the providers we compared.
Although biBERK doesn’t offer the same resources as some other companies, such as safety training and access to a nurse hotline, it’s a great option for quick coverage, especially for small businesses and independent contractors.
Final Verdict
Picking the right workers' compensation policy for your company can be a difficult process, especially with all of the options available. Of all the companies we evaluated, Travelers stood out because of its range of solutions for all businesses, its great reputation for financial strength, and its support offerings.
However, any of the workers’ compensation companies we featured would be a great choice for a small business since they all have great reputations for financial strength and customer service, but some do more for your business than others. For example, both Next Insurance and biBERK, which each offer easy online quotes and applications, are lacking some of the support resources that other companies have. And some insurers aren’t able to offer bundling discounts.
Compare Providers
| Provider | Why We Picked It | Financial Strength Rating (AM Best) | Online Quotes? |
|---|---|---|---|
| Travelers | Top insurer by market share with a great reputation | A++ | No |
| Next Insurance | Affordable insurance with bundling discounts for small businesses | A+ | Yes |
| The Hartford | Expertise in workers’ compensation for medical offices and nurse case managers | A+ | Yes |
| Nationwide | Robust resources and support services for high-risk industries | A+ | Yes |
| Chubb | Excellent reputation for customer satisfaction | A++ | No |
| biBERK | Quick online quotes and application process | A++ | Yes |
Frequently Asked Questions
How Do I Choose Workers’ Compensation Insurance?
To choose the best workers' compensation insurance for your business, start by comparing customized quotes and eliminate the providers that won’t work for you.
To do so, first narrow down your options by selecting the companies that work with your industry and have a good reputation. Next, look at ratings for financial strength and customer satisfaction and also compare coverage, benefits, other insurance products, and resources between companies. Finally, contact the company or, if available, use an online quote generator to get prices and compare them side by side. Once you have all of this information, you'll be in a position to determine the best policy for your company.
How Much Is Workers’ Compensation Insurance for a Small Business?
Workers’ compensation insurance costs depend on several factors, including:
- The size of your business and how much you pay your employees
- Your state laws
- Your industry
- Your claims history
- The coverage requirements in your state
Most states use National Council on Compensation Insurance (NCCI) class codes to determine your industry’s risk and resulting premium. The rate for your class code will be multiplied by your experience modification number, which expresses the number of previous claims you’ve filed, and then multiplied by your payroll amount divided by $100. The formula looks like this:
Classification code rate x Experience Modification Number x (Payroll/$100)
State laws also affect insurance rates. Workers’ compensation insurance rates vary from $0.57/$100 payroll in Texas to $2.32/$100 payroll in Alaska.
Do I Need Workers’ Compensation for One Employee?
In most states, you need workers’ compensation insurance if you have at least one part-time employee. There are exceptions, however. If you want to look up workers’ compensation laws in your state, the National Federation of Independent Businesses (NFIB) has a state-by-state list of requirements.
What Are the Four Types of Workers’ Compensation Benefits?
If an employee becomes injured or ill due to a work-related cause, there are four types of benefits they may receive:
- Medical expense coverage
- Compensation for lost wages
- Vocational rehabilitation coverage
- Death benefits or funeral costs
Most insurance companies provide all four types of coverage in one policy, but requirements for coverage amounts vary by state.
How We Chose the Best Workers’ Compensation Insurance Companies
We evaluated more than 20 insurance companies to select the best six. Since getting claims paid is of the utmost importance for businesses and their employees, we assessed each company’s financial strength ratings and investigated complaints about each insurer with the NAIC. We also paid attention to companies that provide support to businesses, such as safety training, and those that made the application process easy.
All of the companies we chose have a great reputation for financial strength and customer satisfaction, and many have unique features that set them apart from the pack.