The cheapest workers’ compensation insurance

In 2025, the average cost for workers' compensation for a small business is approximately $45 per month.1 However, because rates are calculated based on your specific payroll and industry "class codes," low-risk businesses can find coverage for as little as $6 to $15 per month.

5 Cheapest Workers' Comp Providers (2025)

CompanyEst. Starting RateBest For...NEXT Insurance$11 – $14/moLowest rates for low-risk professions (IT, Consultants).The Hartford$13 – $21/moSmall payroll businesses with fewer than 3 employees.Huckleberry$16/moFast, digital-first quotes for modern startups.biBERK$30/moDirect savings by skipping brokers (Berkshire Hathaway).Simply Business$21/moBest for comparing multiple low-cost carrier quotes.

Average Costs by Industry (Per Month)

Your industry’s risk level is the primary driver of your premium. Here is what various sectors typically pay in 2025:

• White Collar (Accounting, IT, Marketing): $15 – $30

• Beauty/Wellness (Barbers, Hair Stylists): $13 – $25

• Retail Stores: $33 – $602

• General Contractors: $150 – $290

• High-Risk (Roofing, Trucking): $250 – $780+

Strategies to Lower Your Premium

1. Pay-As-You-Go Workers' Comp: Traditional policies require a large upfront deposit based on estimated payroll. Pay-as-you-go (offered by NEXT, biBERK, and through ADP) links your premium to your actual monthly payroll.3 This keeps your cash flow healthy and prevents "audit surprises" at the end of the year.

2. Correct Employee Classification: Ensure your employees are assigned the correct NCCI class codes. If you misclassify a desk worker as a "delivery driver," you could be paying 3x to 5x more than necessary.

3. Experience Rating Modifier (Ex-Mod): If your business stays claim-free for several years, you receive an "Experience Mod" credit, which can slash your premium by 20% or more.

4. Safety Programs: Many insurers offer a 5% discount if you implement a formal safety manual or a "Return-to-Work" program for injured employees.

State Factors: The "Monopolistic" Rule

Note that in North Dakota, Ohio, Washington, and Wyoming, you cannot shop around for private insurance.4 You must buy from the state-run fund, meaning the "cheapest" option is simply the state's fixed rate.