Last updated: March 2026
How Much Does Workers' Compensation Insurance Cost?
Cost Breakdown by Type
| Type / Procedure | Without Insurance | With Insurance |
|---|---|---|
| Office/Low-Risk (monthly per employee) | $0 – $0 | $15 – $50 |
| Retail/Moderate-Risk (monthly per employee) | $0 – $0 | $30 – $100 |
| Construction/High-Risk (monthly per employee) | $0 – $0 | $75 – $300 |
What Affects the Cost
- Your age, location, and health status
- Coverage level and deductible chosen
- Provider or carrier
- Claims history
- Credit score (for some insurance types)
- Discounts available (bundling, loyalty, safe driver, etc.)
Insurance Coverage
Typical coverage: Workers' compensation insurance covers employee medical expenses and lost wages for work-related injuries and illnesses. Required by law in most states.
Insurance costs vary widely based on coverage level, location, age, and claims history. Shopping around and comparing quotes is the single most effective way to save money on insurance premiums.
How to Save Money
- Compare quotes from at least 3-5 providers
- Bundle policies (home + auto) for 10-25% discounts
- Choose higher deductibles for lower monthly premiums
- Ask about all available discounts
- Review coverage annually during open enrollment
- Consider employer-sponsored plans which subsidize 50-80% of premiums
Related Procedures & Costs
Frequently Asked Questions
Workers' comp costs vary by state and industry. Rates are typically $0.75 to $2.50 per $100 of payroll for low-risk jobs and $5 to $30 per $100 for high-risk occupations.
Workers' compensation is required in nearly all states if you have employees. Texas and a few states allow opting out under specific conditions.
Workers' comp covers medical expenses, rehabilitation, lost wages (typically 66% of salary), disability benefits, and death benefits for work-related injuries and illnesses.