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How Much Does Workers Comp Insurance Cost? (2026 Guide)

Per $100 payroll: $0.50–$5+. Required most states.

Updated Mar 2026Insurance$1K–$3K/yr
How Much Does Workers Comp Insurance Cost?
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⚠️ Based on national averages. Get 3+ local quotes for accurate pricing.

Workers Comp Insurance Cost Breakdown

OptionTypical Cost
Office / clerical$800–$1,000
Retail / food service$1,200–$1,950
Manufacturing$1,600–$2,600
Construction$2,000–$3,250
Transportation$3,000+
How Costs Compare
9%
14%
19%
23%
35%
Office / clerical 9%
Retail / food service 14%
Manufacturing 19%
Construction 23%
Transportation 35%

Smart Ways to Save on Workers Comp Insurance

Compare at least 5 quotes. Insurance pricing varies more between companies than almost any other product. The same coverage can cost 2–3x more from one carrier versus another. Use comparison tools but also check with independent agents who represent multiple carriers.
Raise your deductible to lower premiums. Increasing your deductible from $500 to $1,000 can reduce premiums by 15–25%. If you have the savings to cover a higher deductible, this saves money over time since most people file claims infrequently.
Bundle policies for discounts. Most insurers offer 10–20% multi-policy discounts when you combine auto, home, and other coverage. Ask your current carrier what bundling would save before shopping elsewhere.
Review coverage annually. Your needs change over time. An annual review ensures you are not paying for coverage you no longer need or going without coverage you now require. Set a calendar reminder to review every policy at renewal time.

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Workers' Comp Insurance Costs

IndustryRate per $100 Payroll
Office / clerical$0.20–$0.50
Retail / restaurant$0.75–$2.00
Construction (general)$3.00–$10.00
Roofing$15.00–$25.00
Manufacturing$2.00–$8.00
Trucking$5.00–$12.00

Workers' comp is required in every state except Texas (where it is optional but strongly recommended). On a $50,000 payroll for an office worker at $0.35/$100, annual premium is just $175. For a roofer at $20/$100, that same $50,000 payroll costs $10,000/year. Premiums are adjusted based on your Experience Modification Rate (EMR): a perfect safety record reduces premiums 10–30%, while claims increase them 10–50%. Pay-as-you-go policies through companies like Next Insurance or Pie Insurance let you pay monthly based on actual payroll instead of estimated annual premiums.

Related Calculators
Reviewed by Connor Price · Cost Research
📊 Data Sources & Methodology
Cost estimates compiled from industry pricing databases, government data (BLS, Census, CMS), contractor networks, and provider surveys across 50 states. Updated March 2026. Estimates represent national averages — actual costs vary by location, provider, and scope. Learn more about our methodology.

What Drives Workers Comp Insurance Pricing

Workers Comp Insurance premiums are calculated from risk factors specific to your situation. Carriers weigh these factors differently, which is why quotes vary so widely. Your claims history, location, coverage limits, and deductible all interact to determine your rate.

The cheapest policy is not always the best value. Coverage exclusions, claim response times, and financial stability of the carrier matter when you actually need to file a claim. Check AM Best ratings for financial strength and J.D. Power for customer satisfaction before choosing based on price alone.

Frequently Asked Questions

How much does workers comp insurance cost in 2026?
Workers Comp Insurance typically costs varies by provider depending on your needs and location. Office / clerical: $0.20–$0.50. Retail / restaurant: $0.75–$2.00. Construction (general): $3.00–$10.00. Get multiple quotes to ensure fair pricing.
How can I reduce workers comp insurance costs?
Compare providers, choose low-cost options, avoid unnecessary add-ons, and review annually. Even small differences compound significantly over time.
What are the different workers comp insurance price levels?
Prices by tier: Office / clerical: $0.20–$0.50. Retail / restaurant: $0.75–$2.00. Construction (general): $3.00–$10.00. Roofing: $15.00–$25.00. Mid-range balances quality and value for most people.
Are there hidden costs with workers comp insurance?
Watch for: taxes, service fees, permits, and ongoing maintenance. Get all-inclusive pricing in writing. Budget 10-20% above quotes for surprises.