Workers’ compensation insurance quotes for your business

How much does workers’ compensation insurance cost in 2026?

Workers’ comp is priced per $100 of payroll, and the rate depends heavily on the job’s risk. Many businesses land in the $0.75–$2.50 per $100 of payroll range, while high-hazard trades pay well above that. Your rate also reflects your claims history (your “experience modifier”), your state, and your class codes. The figures below are illustrative averages, not quotes.

💡 Example: A landscaping business with $200,000 in annual payroll at a $4.00 rate would pay roughly $8,000 a year — but a clean claims history and comparing carriers can lower that meaningfully. Many carriers also offer pay-as-you-go billing tied to your actual payroll, which smooths cash flow and reduces year-end surprises.

A plain-English guide to workers’ compensation insurance

What is workers’ compensation insurance?

Workers’ compensation — often shortened to “workers’ comp” — pays for medical care and lost wages when an employee is injured or becomes ill because of their job. It’s built on a trade-off sometimes called the “grand bargain”: employees get guaranteed, no-fault benefits, and in return they generally give up the right to sue their employer over the injury. For most businesses with employees, it isn’t optional — it’s required by state law.

What does it actually cover?

• ✓Medical bills for work-related injuries and illnesses, including rehab.
• ✓Lost wages — partial wage replacement while an employee recovers.
• ✓Disability benefits for temporary or permanent, partial or total disability.
• ✓Death benefits and funeral costs for an employee’s dependents.
• ✓Employer’s liability — defense if you’re sued over a workplace injury.

Is it required?

In nearly every state, workers’ comp is mandatory once you have employees — but the details vary. Some states require it from the very first employee; others set a threshold (for example, three or more). A few treat certain roles differently, and one state makes it optional for most private employers. Because the rules and penalties differ so much by state, this is the coverage where confirming your local requirement matters most — a licensed agent can tell you exactly what your state expects.

What happens if you don’t carry it?

Going without required workers’ comp is one of the costliest mistakes a business can make. Depending on the state, penalties can include steep fines, stop-work orders that shut down your operation, and personal liability for an injured worker’s medical costs and lost wages — and in some states, criminal charges. Carrying coverage is almost always far cheaper than the risk of going without.

Who counts as an employee?

Workers’ comp covers your employees, not independent contractors — though misclassifying a worker to avoid premium is a serious risk that states actively audit. Business owners themselves (sole proprietors, partners, LLC members, and corporate officers) can often be excluded from coverage, or choose to include themselves. If you have no employees but a general contractor or client requires proof of coverage, a minimum-premium “ghost” policy can satisfy that requirement.

How is the price determined?

Three things drive your premium: your payroll, your class codes (which reflect how risky each job is), and your experience modifier (your claims history). A clean safety record earns a lower modifier and a lower premium over time. Your state and the carrier matter too — which is exactly why comparing is the simplest way to avoid overpaying for the same coverage.

How Dean Insurance helps

We’re an independent marketplace, so we shop multiple carriers instead of selling one company’s products. You answer a few questions once; we match you with the carriers and licensed agents best suited to your industry and class codes. The agents and carriers you connect with are licensed and authorized to sell in your state — they handle the advice, the policy, and your certificate of insurance, and can set up pay-as-you-go billing where available. Using Dean Insurance is free; we’re paid by our partners only when you choose a policy, and your information is never sold to unrelated third parties. See our Privacy Policy for details.