2025 State-by-State Analysis of Workers Compensation Insurance Rates
The cost of workers’ compensation insurance varies significantly across the United States. Fortunately, we have compiled workers compensation insurance rates by state for all 50 states.
Let’s explore which states offer the best workers compensation insurance costs by state and identify some of the most affordable and most expensive states for workers’ comp insurance.
Average Workers Compensation Insurance Rates By State
The average cost of workers’ compensation insurance in the United States is $1,128 per employee, per year, or $94 per month. Keep in mind that these costs can vary widely by state due to differences in regulations, industry risks, and claims history.
Average Workers Compensation Insurance Costs Per Month by State
In 2025, the average workers compensation insurance costs $94 per employee per month. States like Hawaii and Wyoming have the highest rates due to high-risk industries (e.g., agriculture, mining) and costly benefit mandates. Conversely, states like Iowa and Texas offer the lowest premiums, driven by competitive insurance markets and lower-risk sectors.
Average Workers Compensation Insurance Costs Per Year by State
In 2025, the average workers compensation insurance costs $1,128 per employee per year on average. High-cost states such as Hawaii and Wyoming contrast sharply with affordable regions like Iowa and Texas. These disparities reflect variations in state legislation, industry hazards, and healthcare expenses.
Average Costs Of Workers Compensation Insurance Per Month By State
Note: These figures are estimates based on aggregated partner data and adjusted for 2025 projections. Actual premiums can vary based on factors such as business location, number of employees, claims history, and specific job duties. For the most accurate and personalized information, it’s advisable to consult directly with insurance providers or brokers.
Workers Comp Insurance made easy!
Agents Available To Assist.
Get quotes and sign up online or get help from a licensed agent, we are here if you need us.
Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.
You can get workers comp insurance coverage in minutes of getting your quotes and applying.
Average Workers Compensation Rate per $100 of Payroll by State
In 2025, the national average is around $1.03 per $100 of payroll. States like California and Montana have the highest rates, while Maryland and Virginia, Utah, North Carolina, and Arizona have the lowest. The average workers’ compensation rate per $100 of payroll varies by state. Let’s take a look at the rates for all states.
* denotes the states that are monopolistic states (OH, ND, WA, WY). Businesses in these states must obtain coverage through the state fund.
Data Sources & Methodology: I’m basing this projection on:
- Current (2023-2024) NCCI data and state-specific rate filings where available.
- Historical trends in rate changes.
- General economic forecasts (inflation, etc.).
- I am applying a conservative estimate of the increase. I have considered that rates in many states increase, but some decrease. I will estimate based on taking all these factors into consideration.
Factors Influencing Workers Compensation Insurance Rates
Workers’ compensation insurance rates depend on several factors. Key influences include industry risk, state regulations, claims history, payroll size, and classification codes. High-risk jobs like construction have higher rates, while states with strict laws increase costs. Businesses with frequent claims or higher payrolls also face higher premiums.
How Are Workers Compensation Rates Determined?
Workers’ compensation rates are determined by classification codes, payroll size, experience modification rate (EMR), and state regulations. Insurers assign a risk-based rate per $100 of payroll, adjust for past claims (EMR), and apply state-specific factors. High-risk industries and poor safety records lead to higher premiums.
Factors Impacting a State’s Workers Compensation Costs
A state’s workers’ compensation costs are impacted by industry mix, state regulations, medical costs, claim frequency, and litigation trends. States with high-risk industries, expensive healthcare, or frequent lawsuits have higher rates. Strict safety regulations and low claim rates help reduce costs.
Industry Risks
Industry risks in workers’ compensation refer to the likelihood of workplace injuries. High-risk industries like construction, manufacturing, and trucking have higher injury rates, leading to higher insurance costs. Low-risk sectors like office jobs and retail have lower rates due to fewer workplace hazards.
State Legislation and Regulations
State legislation and regulations impact workers’ compensation costs by setting coverage requirements, benefit levels, and insurer rules. States with stricter laws, like California and New York, have higher rates due to extensive benefits and legal complexities. Others, like Texas, allow businesses to opt out, reducing costs.
Claims History
Claims history affects workers’ compensation rates by influencing the experience modification rate (EMR). Businesses with frequent or costly claims receive a higher EMR, increasing premiums. A clean claims record lowers costs. Insurers assess past claims to predict future risk and adjust rates accordingly.
Safety Programs and Workplace Practices
Safety programs and workplace practices reduce workers’ compensation costs by preventing injuries. Effective programs include employee training, hazard assessments, and safety protocols. Businesses with strong safety records qualify for lower insurance rates due to fewer claims and a reduced experience modification rate (EMR).
WORKERS COMPENSATION INSURANCE WHERE YOU LIVE
Workers comp insurance by state.
Keep your business safe with a Workers Comp Insurance Policy.
Workers Compensation insurance policies protect you against lawsuits, employee injuries, cyber security attacks, and property damage. Click on your state to get a free quote today.
Workers Compensation Costs for Small Businesses
Workers’ compensation costs for small businesses vary by industry and state. While many small businesses pay $70 to $200 per month per employee, high-risk industries like construction and carpentry often have higher rates. Low-risk sectors like real estate and accounting pay far less. Costs depend on payroll size, claims history, and state regulations.
Workers Compensation Costs Per Month for Small Businesses
Workers’ compensation costs for most small businesses average $70 to $200 per month per employee, depending on industry and state. High-risk jobs like construction have higher rates, while low-risk office roles pay less than these averages. Factors like payroll size, claims history, and state regulations influence costs.
Workers Compensation Costs Per Year for Small Businesses
Workers’ compensation costs for small businesses average $780 to $2,400 per year per employee. Costs vary by industry, state regulations, payroll size, and claims history. High-risk industries like construction pay more, while low-risk office jobs have lower premiums than these averages.
Average Small Business Insurance Costs by Policy Type
|
General Liability Insurance |
|
|
Business Owner’s Policy (BOP) |
|
|
Professional Liability (E&O) |
|
|
Commercial Property Insurance |
|
|
Commercial Auto Insurance |
|
|
Commercial Umbrella Policy |
States with the Lowest and Highest Workers Compensation Costs
Small businesses pay an average of $70 to $200 per month per employee for workers comp insurance in the United States. When examining workers’ compensation insurance costs across the United States, it’s evident that rates and costs vary significantly from state to state. These variations are influenced by factors such as state regulations, the predominant industries within the state, and overall workplace safety records.
The Lowest Workers’ Comp Costs Per Month by State
The Highest Workers’ Comp Costs Per Month by State
The cost of workers’ compensation insurance varies significantly across the United States. Fortunately, we have compiled workers compensation insurance rates by state for all 50 states.
Let’s explore which states offer the best workers compensation insurance costs by state and identify some of the most affordable and most expensive states for workers’ comp insurance.
Average Workers Compensation Insurance Rates By State
The average cost of workers’ compensation insurance in the United States is $1,128 per employee, per year, or $94 per month. Keep in mind that these costs can vary widely by state due to differences in regulations, industry risks, and claims history.
Average Workers Compensation Insurance Costs Per Month by State
In 2025, the average workers compensation insurance costs $94 per employee per month. States like Hawaii and Wyoming have the highest rates due to high-risk industries (e.g., agriculture, mining) and costly benefit mandates. Conversely, states like Iowa and Texas offer the lowest premiums, driven by competitive insurance markets and lower-risk sectors.
Average Workers Compensation Insurance Costs Per Year by State
In 2025, the average workers compensation insurance costs $1,128 per employee per year on average. High-cost states such as Hawaii and Wyoming contrast sharply with affordable regions like Iowa and Texas. These disparities reflect variations in state legislation, industry hazards, and healthcare expenses.
Average Costs Of Workers Compensation Insurance Per Month By State
Note: These figures are estimates based on aggregated partner data and adjusted for 2025 projections. Actual premiums can vary based on factors such as business location, number of employees, claims history, and specific job duties. For the most accurate and personalized information, it’s advisable to consult directly with insurance providers or brokers.
Workers Comp Insurance made easy!
Agents Available To Assist.
Get quotes and sign up online or get help from a licensed agent, we are here if you need us.
Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.
You can get workers comp insurance coverage in minutes of getting your quotes and applying.
Average Workers Compensation Rate per $100 of Payroll by State
In 2025, the national average is around $1.03 per $100 of payroll. States like California and Montana have the highest rates, while Maryland and Virginia, Utah, North Carolina, and Arizona have the lowest. The average workers’ compensation rate per $100 of payroll varies by state. Let’s take a look at the rates for all states.
* denotes the states that are monopolistic states (OH, ND, WA, WY). Businesses in these states must obtain coverage through the state fund.
Data Sources & Methodology: I’m basing this projection on:
- Current (2023-2024) NCCI data and state-specific rate filings where available.
- Historical trends in rate changes.
- General economic forecasts (inflation, etc.).
- I am applying a conservative estimate of the increase. I have considered that rates in many states increase, but some decrease. I will estimate based on taking all these factors into consideration.
Factors Influencing Workers Compensation Insurance Rates
Workers’ compensation insurance rates depend on several factors. Key influences include industry risk, state regulations, claims history, payroll size, and classification codes. High-risk jobs like construction have higher rates, while states with strict laws increase costs. Businesses with frequent claims or higher payrolls also face higher premiums.
How Are Workers Compensation Rates Determined?
Workers’ compensation rates are determined by classification codes, payroll size, experience modification rate (EMR), and state regulations. Insurers assign a risk-based rate per $100 of payroll, adjust for past claims (EMR), and apply state-specific factors. High-risk industries and poor safety records lead to higher premiums.
Factors Impacting a State’s Workers Compensation Costs
A state’s workers’ compensation costs are impacted by industry mix, state regulations, medical costs, claim frequency, and litigation trends. States with high-risk industries, expensive healthcare, or frequent lawsuits have higher rates. Strict safety regulations and low claim rates help reduce costs.
Industry Risks
Industry risks in workers’ compensation refer to the likelihood of workplace injuries. High-risk industries like construction, manufacturing, and trucking have higher injury rates, leading to higher insurance costs. Low-risk sectors like office jobs and retail have lower rates due to fewer workplace hazards.
State Legislation and Regulations
State legislation and regulations impact workers’ compensation costs by setting coverage requirements, benefit levels, and insurer rules. States with stricter laws, like California and New York, have higher rates due to extensive benefits and legal complexities. Others, like Texas, allow businesses to opt out, reducing costs.
Claims History
Claims history affects workers’ compensation rates by influencing the experience modification rate (EMR). Businesses with frequent or costly claims receive a higher EMR, increasing premiums. A clean claims record lowers costs. Insurers assess past claims to predict future risk and adjust rates accordingly.
Safety Programs and Workplace Practices
Safety programs and workplace practices reduce workers’ compensation costs by preventing injuries. Effective programs include employee training, hazard assessments, and safety protocols. Businesses with strong safety records qualify for lower insurance rates due to fewer claims and a reduced experience modification rate (EMR).
WORKERS COMPENSATION INSURANCE WHERE YOU LIVE
Workers comp insurance by state.
Keep your business safe with a Workers Comp Insurance Policy.
Workers Compensation insurance policies protect you against lawsuits, employee injuries, cyber security attacks, and property damage. Click on your state to get a free quote today.
Workers Compensation Costs for Small Businesses
Workers’ compensation costs for small businesses vary by industry and state. While many small businesses pay $70 to $200 per month per employee, high-risk industries like construction and carpentry often have higher rates. Low-risk sectors like real estate and accounting pay far less. Costs depend on payroll size, claims history, and state regulations.
Workers Compensation Costs Per Month for Small Businesses
Workers’ compensation costs for most small businesses average $70 to $200 per month per employee, depending on industry and state. High-risk jobs like construction have higher rates, while low-risk office roles pay less than these averages. Factors like payroll size, claims history, and state regulations influence costs.
Workers Compensation Costs Per Year for Small Businesses
Workers’ compensation costs for small businesses average $780 to $2,400 per year per employee. Costs vary by industry, state regulations, payroll size, and claims history. High-risk industries like construction pay more, while low-risk office jobs have lower premiums than these averages.
Average Small Business Insurance Costs by Policy Type
|
General Liability Insurance |
|
|
Business Owner’s Policy (BOP) |
|
|
Professional Liability (E&O) |
|
|
Commercial Property Insurance |
|
|
Commercial Auto Insurance |
|
|
Commercial Umbrella Policy |
States with the Lowest and Highest Workers Compensation Costs
Small businesses pay an average of $70 to $200 per month per employee for workers comp insurance in the United States. When examining workers’ compensation insurance costs across the United States, it’s evident that rates and costs vary significantly from state to state. These variations are influenced by factors such as state regulations, the predominant industries within the state, and overall workplace safety records.
