Question 1

What is the best workers comp insurance for small businesses in 2026?

Accepted Answer

NEXT Insurance (ERGO NEXT) is our top pick for small businesses needing workers comp online — fast quote, instant policy, and competitive pricing for most industries. For larger small businesses and established companies, The Hartford and Employers Holdings are excellent alternatives with longer track records.

Question 2

How much does workers comp insurance cost for a small business?

Accepted Answer

Workers comp premiums are calculated per $100 of payroll and vary dramatically by industry. Low-risk office work: $0.20-$0.50 per $100 of payroll. Service trades like landscaping or cleaning: $3-$8 per $100. High-risk trades like roofing: $15-$25 per $100. A small 3-person landscaping crew with $120,000 in payroll might pay $3,600-$9,600 per year.

Question 3

Can a sole proprietor get workers comp insurance?

Accepted Answer

Yes, sole proprietors can purchase workers comp for themselves voluntarily — and in some states, certain industries require it even for sole proprietors. Working with heavy equipment or on job sites where clients require proof of WC for everyone on-site (including the business owner) is a common reason sole proprietors buy voluntary coverage.

Question 4

Do I need workers comp if I only use independent contractors?

Accepted Answer

Technically no — workers comp covers employees, not true independent contractors. However, many states have strict tests to determine whether someone is really an employee or a contractor. Misclassification is heavily audited. If workers are classified incorrectly as contractors, you could face significant fines and liability for any injuries they sustain.

Question 5

What does workers comp actually pay for when an employee is injured?

Accepted Answer

Workers comp covers: all medical expenses related to the work injury (doctor visits, surgery, physical therapy), a portion of lost wages (typically 60-80% of the worker's average weekly wage), permanent disability benefits if the injury causes long-term impairment, and death benefits to the worker's family if the injury is fatal. It also covers your legal defense costs if the employee sues you.

Best Workers Comp Insurance for Small Business 2026

Top 5 Workers Comp Carriers for Small Businesses

ERGO NEXT (NEXT Insurance)

The Hartford

Pie Insurance

biBERK (Berkshire Hathaway)

Employers Holdings

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