If you’re running a business and have employees, one of the first things you’ll need is workers’ compensation insurance. It’s not just a smart move—it’s the law in most places. But if you’re new to this, you might be asking: Where do I get workers’ comp insurance? That’s exactly what we’re going to cover here. In this article, we’ll walk you through where to get it, how it works, and what you need to know before you buy.
Let’s break it all down into plain and simple terms so you can make a smart decision.
What Is Workers’ Comp Insurance?
Workers’ compensation insurance is a type of business insurance that helps cover medical costs and lost wages if an employee gets hurt on the job. It also protects the business from lawsuits related to workplace injuries. In many states, it’s mandatory even if you only have one employee.
It gives peace of mind to both the employer and the worker. The employee knows they’ll get help if something goes wrong, and the business doesn’t have to worry about big legal bills.
Do You Really Need It?
In most cases, yes. Each state has its own rules. Some require it even if you have just one part-time worker. Others might only need it once you hire your second or third employee. If you’re a sole proprietor with no employees, you might not need it—but it’s still worth thinking about if your job is risky.
If you don’t carry workers’ comp when it’s required, you could face fines, penalties, or even get shut down. That’s why it’s better to be safe than sorry.
So, Where Can You Get It?
This is the big question, and the answer depends on where your business is located and what kind of work you do. Here are the main places to get workers’ comp insurance:
1. Private Insurance Companies
This is the most common way businesses get workers’ comp insurance. There are many well-known insurance companies that offer it. Some of the most popular include:
Travelers
The Hartford
Nationwide
Liberty Mutual
State Farm
Berkshire Hathaway GUARD
These companies let you apply online, over the phone, or through a local agent. It’s good to get quotes from a few of them so you can compare prices and coverage.
2. Your State’s Assigned Risk Pool
If private insurance companies think your business is too risky to cover (like construction or tree trimming), they might turn you down. But don’t worry—you still have an option.
Every state has a system in place for “high-risk” businesses. It’s called the assigned risk pool. This system helps you get coverage even if private insurers say no.
To get into the pool, you usually have to go through a licensed insurance agent. Your rates might be a little higher, but at least you’ll have the coverage you need.
3. State-Run Insurance Programs
Some states run their own workers’ comp insurance programs. These are often called “state funds.” There are two types:
Monopolistic state funds: In these states, you must buy workers’ comp insurance from the state. Private companies can’t sell it there.
Competitive state funds: In these states, the government offers workers’ comp insurance, but private companies can still compete.
States with monopolistic funds include North Dakota, Ohio, Washington, and Wyoming. If your business is in one of these, you don’t have a choice—you have to go through the state.
4. Through a Payroll Company or Professional Employer Organization (PEO)
Some businesses use payroll companies or PEOs to handle HR tasks, including payroll and benefits. Many of these services can also help you get workers’ comp insurance.
This is a good option for small businesses that don’t want to deal with insurance paperwork. The PEO handles most of it for you, and they usually have access to better rates.
5. Online Insurance Brokers
In recent years, many online platforms have popped up to make getting workers’ comp easier. These aren’t insurance companies themselves, but they help you compare quotes and find the best option.
Some of the popular online brokers include:
Pie Insurance
CoverWallet
Simply Business
NEXT Insurance
These platforms are fast, simple, and often built with small business owners in mind. You can get a quote in just a few minutes and sometimes buy coverage the same day.
What Should You Look for in a Workers’ Comp Policy?
Before you choose a provider, here are a few things to keep in mind:
Coverage limits: Make sure the policy covers all possible medical costs, lost wages, and rehabilitation for injured workers.
Premium cost: Get quotes from at least 3 sources. Prices can vary, even for the same level of coverage.
Experience modifier (MOD): This is a number based on your business’s safety record. If it’s low, your premiums could be cheaper.
Customer service: Pick a company that’s easy to reach and helps you file claims quickly.
State compliance: Each state has its own rules. Make sure your policy meets your state’s legal requirements.
What Information Do You Need to Apply?
Before you apply for coverage, you’ll need some basic details about your business. Be ready to provide:
Number of employees
Type of work you do
Total payroll
Business location
Any history of past claims
This info helps insurers figure out how risky your business is and what your premium should be.
How Much Does Workers’ Comp Insurance Cost?
There’s no one-size-fits-all answer, but here’s a rough idea:
Low-risk jobs (like office work) might cost $0.30 to $0.60 per $100 of payroll.
High-risk jobs (like roofing) could cost $5.00 to $10.00 per $100 of payroll—or even more.
The final price depends on your industry, your claims history, and your state’s rates.
Can You Get Workers’ Comp Insurance Fast?
Yes, you can. Some insurance companies and online platforms can approve your policy in a single day. You’ll get your proof of coverage (also called a certificate of insurance) almost instantly.
This is helpful if you’re starting a new contract and need to show proof of insurance right away.
What Happens After You Buy It?
Once you have your policy, your employees are protected. If someone gets hurt on the job, you’ll file a claim with your insurance provider. They’ll handle the medical bills, lost wages, and help your employee recover.
Each year, you’ll renew your policy. The insurer might check your payroll again and adjust your premium. If your business grows or you hire more workers, your rate might go up.
What If You Don’t Have Employees Yet?
If you’re just getting started and haven’t hired anyone yet, you might not need coverage right away. But the moment you bring someone on—full-time, part-time, or even a contractor, depending on your state—you may be required to get insurance.
Some business owners even choose to cover themselves with a “voluntary” workers’ comp policy, especially in risky jobs.
Final Tips for Business Owners
Always check your state’s rules first. They’re all different.
Work with a licensed insurance agent if you’re not sure where to start.
Don’t wait until your employee gets hurt to think about insurance.
Keep your safety training and equipment up to date. Fewer injuries mean lower premiums.
Review your policy every year to make sure it still fits your business.
Conclusion
So, where do you get workers’ comp insurance? The short answer: from private insurers, state programs, online brokers, or payroll services. The right place depends on your business, your location, and your risk level.
What matters most is that you don’t wait. Getting covered early helps protect your employees—and your business—from the unexpected. With the right policy in place, you can focus on what you do best: growing your business and keeping your team safe.
Still not sure where to start? Talk to a local agent or try an online platform. It’s easier than you think—and one of the smartest steps you can take as a business owner.
Related topic:
What Is the Best Workers’ Comp Insurance for Small Businesses?
