Best Workers Comp Insurance for Small Business in 2026

Affiliate disclosure: Dareable earns a commission when you purchase coverage through links on this page. This does not affect our recommendations.

Workers compensation is mandatory in most states the moment you hire your first employee. The benefit rates your injured employees receive are set by state law. Carriers cannot compete on that. What carriers compete on: premium pricing, payroll audit flexibility, claims handling speed, and coverage for industries that standard markets decline.

For a small business owner, the practical question is not "which carrier has better benefits" but "which carrier will price my risk fairly, audit my payroll accurately, and handle a claim without hassle if one happens."

Quick Summary

Provider	Best For	Avg Annual Cost (10 employees)
Next Insurance	Small businesses wanting online quote and purchase	$3,200/yr
The Hartford	Businesses wanting workers comp + GL bundled	$3,500/yr
Pie Insurance	Contractors and blue-collar trades	$2,900/yr
Simply Business	Comparing multiple carrier quotes at once	Varies
biBerk (Berkshire Hathaway)	Budget-conscious small businesses, white-collar trades	$2,600/yr

Cost estimates for a 10-employee general contracting company in Texas with $600,000 payroll. Rates vary significantly by state, classification code, and loss history.

Why We Picked These Providers

Workers comp pricing is highly state-specific (in four states, you can only buy from a state fund). These five carriers are nationally active, competitive for small businesses, and available through direct or near-direct channels. We excluded carriers that require traditional broker channels only (adds time and cost) and state funds, which are covered separately in state-specific guides.

Provider Reviews

Next Insurance

Next Insurance entered the workers comp market and built it specifically for small businesses that want a fully digital experience. The application covers the most common trades and service businesses and produces a quote in minutes.

Best for: Service businesses, retail, and trades with under 25 employees. Companies that want their workers comp and GL from the same carrier for simplicity.

What it costs: $2,800 to $4,500 per year for a 10-employee company depending on trade and state. Premium is based on payroll and classification code. Pay-as-you-go payroll integration available, which eliminates the traditional annual audit headache.

One thing to watch: Next Insurance does not write all classification codes in all states. Higher-hazard trades (roofing, structural steel, excavation) may be referred to a different carrier. Check availability for your class code before relying on them.

Affiliate link: Get a workers comp quote from Next Insurance

The Hartford

The Hartford has one of the deepest workers comp books in the US, writing most industries in most states. They are particularly strong for small to mid-sized businesses that want to consolidate their commercial insurance (workers comp, GL, commercial auto, BOP) under one policy program.

Best for: Companies with 10 to 50 employees who also need GL or commercial auto. Businesses in industries The Hartford specializes in (manufacturing, distribution, healthcare).

What it costs: $3,200 to $5,500 per year for a 10-employee operation. Not always the cheapest single-line option, but bundling may reduce total premium for companies buying multiple lines.

One thing to watch: The Hartford's premium audit process is more traditional than pay-as-you-go carriers. They conduct an annual payroll audit at the end of the policy year. If your actual payroll differs significantly from estimated payroll, you may owe additional premium (or receive a refund).

Pie Insurance

Pie is focused exclusively on workers comp for small and mid-sized businesses, with a particular strength in contractor and trade classifications. They use technology to price risks that standard carriers often decline or price too high: roofing, masonry, HVAC, plumbing, electrical.

Best for: Contractors in trades with elevated injury rates that get priced out by standard markets. Businesses that have been declined by other carriers or quoted high and want alternatives.

What it costs: $2,600 to $4,200 per year for a 10-employee contracting company. Pie often prices competitively against The Hartford and Hiscox on trade contractor classifications.

One thing to watch: Pie is a newer entrant and does not have the claims-handling history of The Hartford or biBerk. Their process is largely digital. For large or complex claims, the lack of a deep claims department may be a limitation.

Simply Business

Simply Business is an insurance marketplace that generates quotes from multiple carriers on a single application. For workers comp, this means seeing Hiscox, Employers Holdings, and other carriers in their network in one place.

Best for: Small businesses shopping on price who want to compare options without applying multiple times. Useful as a benchmark to confirm whether a direct-carrier quote is competitive.

What it costs: Varies by carrier in their network. No additional fee from Simply Business: carriers pay them a referral commission.

One thing to watch: Not all carriers are in the Simply Business network. Their comparison is useful but not exhaustive. After getting quotes through Simply Business, also check Pie Insurance and biBerk directly for contractor-heavy trades.

biBerk (Berkshire Hathaway Direct)

biBerk is the direct-to-consumer arm of Berkshire Hathaway. They write workers comp at competitive rates, backed by Berkshire Hathaway's A++ AM Best rating, the highest in the industry. Their focus is on straightforward, lower-risk business classes: retail, restaurants, professional services, office-based businesses.

Best for: White-collar and lower-hazard businesses (accountants, consultants, retail stores, restaurants) looking for strong financial backing at competitive rates.

What it costs: $2,200 to $3,800 per year for a 10-employee service business. biBerk tends to price competitively on lower-hazard classes and may be 15 to 25 percent below The Hartford on equivalent coverage.

One thing to watch: biBerk does not write all industries. High-hazard trades (roofing, electrical, structural) may not be available. The application will tell you quickly if your class code is not in their appetite.

How We Evaluated These Providers

Pricing competitiveness. Workers comp premium is driven by state rates, classification codes, and payroll. We benchmarked across the five common contractor and service business profiles.

Financial strength. AM Best ratings: Next Insurance (A-), The Hartford (A+), Pie Insurance (A-), Simply Business varies, biBerk/Berkshire Hathaway (A++).

Claims process. Workers comp claims involve medical treatment, lost wages, and return-to-work coordination. We evaluated each carrier's claims reputation based on industry data and small business reviews.

Pay-as-you-go availability. Pay-as-you-go workers comp (premium calculated from actual payroll each pay period) eliminates audit surprises and improves cash flow. Available with Next Insurance and some Simply Business carriers.

Industry availability. Some carriers avoid high-hazard trades. We noted which carriers are more and less willing to write roofing, structural, HVAC, and similar elevated-risk classes.

How to Get a Quote

Start with Next Insurance for a fast baseline. Then check Pie Insurance if you are in a trade classification, as they often have better pricing for contractors than the digital generalists. If you want to see multiple options at once, run Simply Business alongside direct quotes.

A note on state funds: if you are in California, New York, Texas (where workers comp is optional but advisable), Washington, North Dakota, Ohio, or Wyoming, check your state's workers comp fund alongside private carriers. State funds are often competitive, particularly for higher-hazard trades.

Frequently Asked Questions

Is workers comp required for my business?

In most states, workers comp is required the moment you hire any employee. A few states (Texas, South Carolina) allow private employers to opt out, but doing so creates significant personal liability exposure. Even in opt-out states, most contracts with clients or GCs require workers comp coverage. Always check your specific state's requirements.

What does workers comp actually cover?

Workers comp covers two things: medical expenses for a work-related injury or illness (there is no limit on medical benefits in most states), and a portion of lost wages while the employee cannot work (typically 66 to 75 percent of their average weekly wage, up to a state maximum). It also covers the employer's liability for work-related injuries, preventing employees from suing you separately for most workplace injuries.

How is my premium calculated?

Premium is calculated by multiplying your payroll (in $100 increments) by the rate for each classification code, adjusted by your experience modification factor (if you have prior workers comp history). A business with low prior claims gets a lower experience mod, reducing premium. A business with high claims gets a higher mod, increasing premium.

What happens during a payroll audit?

At the end of your policy year, the carrier audits your actual payroll against what you estimated when the policy started. If actual payroll is higher than estimated, you owe additional premium. If actual payroll is lower, you receive a partial refund. Pay-as-you-go programs eliminate this by billing monthly based on your actual payroll run.

Can I get workers comp the same day?

Yes. Next Insurance, Pie Insurance, and biBerk all provide same-day coverage and certificates for most business types. The digital application takes 5 to 10 minutes for standard trades.

Sources

• National Council on Compensation Insurance (NCCI): ncci.com
• Next Insurance workers comp: next.insurance/workers-comp
• The Hartford workers comp: thehartford.com/workers-compensation
• Pie Insurance: pieinsurance.com
• biBerk workers compensation: biberk.com/workers-compensation
• AM Best financial strength ratings: ambest.com
• Bureau of Labor Statistics injury and illness data: bls.gov/iif