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How Much is Workers’ Comp Insurance? | Pie Insurance

Wondering about the cost of workers’ compensation insurance? Here’s what to expect when you're shopping for small business policies.
How Much is Workers’ Comp Insurance? | Pie Insurance

If you own a small business, you may be wondering: How much is workers’ comp? The cost of workers’ comp insurance varies depending on: your business location, your industry, the risk associated with your employees’ work, the extent of your payroll, and your workers’ compensation claims history. Of course, you can’t be sure precisely how much you’ll pay until you get a quote directly from an insurance provider. So how much is workers’ comp going to cost? It depends.

To gain a general idea of how much workers’ comp insurance costs, it’s helpful to look at different premiums across states and industries.

How much is workers’ comp insurance by state?

The average rates employers pay for workers’ compensation across different states are published by two different groups: the Oregon Department of Consumer and Business Services and the National Academy of Social Insurance (NASI). Here are the state averages of what employers pay for workers’ compensation insurance for every $100 of covered wages.

Employer costs for workers’ compensation insurance (per $100 of covered wages)


Employer Cost


Employer Cost

Arkansas0.74New Hampshire1.03
California1.83New Jersey1.45
Colorado0.97New Mexico1.40
Connecticut1.20New York1.46
Delaware1.47North Carolina0.97
District of Columbia0.51North Dakota1.28
Illinois1.07Rhode Island1.11
Indiana0.75South Carolina1.71
Iowa1.48South Dakota1.16
Michigan0.74West Virginia1.41

Based on National Academy of Social Insurance Workers’ Compensation: Benefits, Costs, and Coverage. Table 14 (2017).

This data can give you an overview of how workers’ compensation costs compare across different states. However, because these are state averages, they do not show how workers’ compensation premiums vary based on other factors.

How much is workers’ comp by industry?

Workers’ compensation costs are lower for industries with less physical risk (such as accounting) and higher for those that are more hazardous (such as construction). Different roles are organized based on risk level and each is assigned a workers’ compensation class code by a state or national organization. The riskier the work, the higher the premium.

When you consider that nationwide, over 62 billion dollars in workers’ compensation benefits were paid out to injured employees, protecting your business with workers’ compensation insurance makes sense. A single injury could be devastating to a small business.

To learn more about workers’ compensation, check out our resource on how to calculate workers’ compensation costs per employee and find out not only how workers’ comp protects employees, but how workers’ compensation benefits employers as well.

Are you overpaying for workers’ comp?

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.