How much is workers comp insurance?
Workers comp insurance costs $76 to $121 a month in 2026. What changes your price is below.
Progressive Commercial says its new small business customers paid a median of $76 a month for workers comp in 2025, and an average of $121. The Hartford says its small business customers average $86 a month, or $1,032 a year. The price is set from your payroll and how risky the work is.
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Is this price fair?
A fair price is $75.
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Middle of the range: $75
What you are paying for
How we calculate this
Prices are for the United States in 2026 from published cost guides, checked September 2026. This is an estimate, not a quote.
How much does workers comp cost?
| Median, Progressive customers, 2025 | $76 a month. |
|---|---|
| Average, Progressive customers, 2025 | $121 a month. |
| Average, The Hartford customers | $86 a month, $1,032 a year. |
| Payroll under $300,000, The Hartford | About $81 a month on average. |
| Lowest policies, The Hartford | From about $13 a month. |
| Construction crews | Often far above average. |
What pushes a quote up
| Job type | Each job has a class code with its own rate. |
|---|---|
| Payroll | Priced per $100 of payroll. |
| Claims history | Past injuries raise your experience mod. |
| State | Each state sets its own rules. |
| Safety program | Some insurers give credits. |
Workers comp insurance cost by region
| Lower cost states | $60 to $95. Alabama, Arkansas, Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, West Virginia and most rural areas. |
|---|---|
| Average cost states | $76 to $121. Arizona, Florida, Georgia, Michigan, North Carolina, Ohio, Pennsylvania, Texas, Virginia and most mid size cities. |
| Higher cost states | $100 to $155. California, Connecticut, Hawaii, Massachusetts, New Jersey, New York, Washington, plus big metros such as Chicago, Denver and Washington DC. |
These rows are our estimate. We took the typical national range and adjusted it for local labor costs, which run about 20 percent lower in the cheapest states and about 30 percent higher in the dearest ones. Each state sets its own rules, and 4 states run their own fund.
How the price is worked out
The Hartford shows the basic formula: your class code rate, times your experience mod, times your payroll divided by $100. The class code rate comes from your type of work. The experience mod goes up after claims and down after years with none.
NerdWallet notes yearly premiums can range from a few hundred dollars to a few thousand per $100,000 of payroll, depending on the job, state and claims.
State funds
The Hartford notes businesses in North Dakota, Ohio, Wyoming and Washington must buy workers comp from a state run fund, not a private insurer.
How to judge the quote in your hand
- Ask which class code you are in.
- Ask your experience mod.
- Ask how payroll will be audited.
- Ask if you can pay as you go.
- Ask what your state requires.
Ways to pay less
- Check your class codes are correct.
- Split payroll between office and field codes where allowed.
- Start a safety program.
- Report injuries fast to keep claims small.
- Get 3 quotes unless you are in a state fund state.
Before you decide
A worked example
Say you have $100,000 in office payroll and your class rate is $0.30 per $100 with a mod of 1.0. That is 1,000 units of $100, times $0.30, for about $300 a year before fees. A roofing crew with the same payroll and a rate of $8 per $100 would pay about $8,000. The rates here are only examples. Your state and insurer set the real ones.
End of year audit
Most policies start from your payroll estimate and check it after the year ends. If payroll grew, you may owe more. If it shrank, you may get money back.
This page is price information, not insurance or legal advice. Rules on required coverage differ by state and by contract.
About $76 to $121 a month for most small businesses. Class code rate times experience mod times payroll divided by $100. Most states require it once you have employees. Rules differ by state. North Dakota, Ohio, Wyoming and Washington. Related jobs people check next, with the usual 2026 price.Common questions
How much does workers comp cost?
How is workers comp calculated?
Is workers comp required?
Which states have a state fund only?
Other service costs
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