Getting the best workers’ compensation insurance for your small business is absolutely essential for any owner with employees because accidents in the workplace are essentially inevitable. According to data from the US Bureau of Labor Statistics, in 2021 alone a total of 2.6 million non-fatal injuries and illnesses occurred to workers within the country.
For small business owners, choosing the best workers’ comp insurance can help them avoid the significant costs that result from these situations while this can be an added benefit to employees who can rest assured that, if an accident happens, their living and medical expenses will be covered.
In this article, we share a detailed list of the best workers’ comp insurance for small businesses, featuring 5 of the best providers in the United States.
Best Workers’ Comp Insurance for Small Business in a Nutshell
To rank the companies that made it to the best workers’ comp insurance for small business list, we will be focusing on 5 elements of their service that are considered important for a prospective customer. These are cost, online availability, coverage, provider network, and customer support.
Without further ado, here’s our best workers’ comp insurance for small business list:
- Best Workers’ Comp Insurance for Small Business Overall: The Hartford.
- Most Financially Robust Workers’ Comp Insurance Company: biBerk.
- Best Global Workers’ Comp Insurance Company: Chubb.
- Largest Workers’ Comp Insurance Company in the US: Travelers.
- Most Flexible Workers’ Comp Insurance: AmTrust Financial.
Is Workers’ Compensation Insurance Important for Small Businesses?
Workers’ compensation should be a top priority for any small business with employees. While premiums add overhead costs, the protection that this insurance provides is invaluable and often legally required. There are several compelling reasons why small business owners need to buy this insurance product:
It’s Legally Required for Protection
- In most states, businesses are required to have workers’ comp insurance once they hire even one employee.
- Failing to comply can result in fines, legal penalties, and criminal charges.
- Skipping coverage to save money exposes the business to substantial financial and legal liability.
It Provides a Safety Net for Injured Staff
- Covers medical treatment, lost wages, and rehabilitation for hurt employees.
- Without coverage, workplace injuries could financially devastate workers.
- Gives injured staff the support they need to recover.
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It Reduces Financial Risk for the Business
- This type of insurance policy covers liability costs so workplace accidents don’t drain the company’s finances.
- They minimize the chance of expensive lawsuits from uninsured injured employees.
It Boosts Employee Morale and Loyalty
- Employees appreciate knowing that their well-being is protected.
- It demonstrates a commitment to caring for staff.
- They foster stronger company culture, engagement, and retention.
The Alternative Incurs Catastrophic Risks
- Premium costs are small compared to accident liability.
- Going without it leaves the business extremely vulnerable.
- Owners can be proactive and not reactive by buying this type of insurance.
How to Pick the Best Workers’ Comp Insurance for Your Small Business
The list of the best workers’ comp insurance for small business provided above is a helpful starting point but you will likely need more information to decide which provider is best for your situation. Here is a detailed discussion of the factors that we used to rank the companies above and that you should consider when making your decision.
You can use these elements to shortlist your candidates and make a final decision.
- Cost: The premium rates and any available discounts should be considered when the best workers’ comp insurance for small business. Lower costs mean more affordable coverage and savings for small business budgets. Comparing premium costs can identify providers that offer competitive pricing.
- Online availability: The availability of online account access, policy management, and claims reporting can be an important consideration for small businesses that want technology-enabled convenience and efficiency. Providers with robust online services can simplify workers’ comp administration.
- Coverage: Evaluating the policy coverage against the company’s state-by-by statutory requirements and business-specific risks helps ensure the workers’ comp insurance meets regulatory standards and the unique needs of the small business depending on the industry it participates in. Reviewing details like medical assistance availability, lost wages, and death benefits provides a basis for comparing various different plans.
- Provider network: Considering the size and quality of the provider network is relevant because broad provider access makes it simpler for injured employees to get treatment and have claims processed. Extensive networks with reputable doctors can result in smoother claim-handling procedures.
- Customer service: Ranking insurers based on customer service like claim-handling speed and agent availability makes sense for small businesses that want responsive service and ease of doing business. Superior service improves the workers’ comp experience for both the employer and employees.
List of the Best Workers’ Comp Insurance for Small Business
Now that you know what factors to consider when choosing the best workers’ comp insurance provider for your small business, it’s time to dive into our list of the best options available.
#1 – Best Workers’ Comp Insurance for Small Business: The Hartford
With over 200 years of experience, The Hartford is a leading property and casualty insurance provider that serves over 1 million small business customers. The company has a strong reputation, having been named one of the World’s Most Ethical Companies 14 times by Ethisphere. The Hartford offers a wide range of insurance products, including workers’ compensation policies tailored to meet the needs of small and mid-sized businesses.
What Makes the Hartford One of the Best?
The Hartford aims to make workers’ compensation efficient and hassle-free for small businesses. They provide access to extensive medical provider networks with over 1 million experienced providers to treat work-related injuries. The Hartford also offers enhanced prescription drug features, with access to 65,000+ pharmacies and convenient mail-order options to fill scripts cost-free.
Additionally, The Hartford has programs like needle-stick reimbursement to cover testing and medical costs if an employee is injured by a needle. Their “nursed back to health” program also coordinates treatment and therapies to help employees recover by relying on experienced case managers. These value-added services allow The Hartford to deliver positive experiences to small business owners and employees.
Top Features of Coverage
The Hartford provides robust core workers’ compensation coverage as well as added programs and benefits. Key features include:
- Medical care coverage including treatment, hospital services, and physical therapy.
- Wage replacement for lost income while recovering from injury.
- Disability benefits for permanent partial or total disability.
- Death benefits to support families of employees who died on the job.
- Legal liability protection if employees file lawsuits over injuries.
- Prescription drug and extensive provider network access as mentioned above.
- Pay-as-you-go billing based on current payroll rather than estimates.
Coverage Offered
The Hartford offers workers’ compensation policies with a variety of options to meet different small business needs. Their coverage includes:
- Injury and illness compensation for incidents that occurred in the workplace.
- Ability to choose deductible levels to balance premium costs.
- Coverage for part-time and seasonal workers.
- Options to include employer’s liability insurance.
- Voluntary coverage in states where not legally required.
- Flexibility around employee classification for optimal rates.
Cost of Coverage
According to The Hartford’s data, most small businesses with under $300,000 in payroll pay an average of $70 per month for workers’ compensation insurance. Some policies can begin as low as $13 per month. Rates vary based on payroll, employee classifications, industry risk, and claims history. The Hartford provides quotes online so small businesses can easily compare pricing. Their expertise helps small companies get tailored workers’ comp coverage at competitive costs.
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#2 – Most Financially Robust Workers’ Comp Insurance Company: biBerk
biBerk is the small business insurance division of Berkshire Hathaway, the renowned company led by Warren Buffett. biBerk exclusively serves small and mid-sized businesses, with over 200,000 satisfied customers. As part of the respected Berkshire Hathaway Insurance Group, biBerk leverages substantial insurance expertise while focusing specifically on the needs of smaller companies.
What Makes biBerk One of the Best?
biBerk aims to make the task of securing small business insurance seamless and affordable. These are the key advantages that helped biBerk make it to this best workers’ comp insurance for small business list:
- Direct insurance without brokers, passing savings of up to 20% on to customers.
- The quote and policy purchase process can be completed entirely online or via phone experts.
- Decades of insurance experience as a subsidiary of the prestigious conglomerate Berkshire Hathaway.
- Top-rated coverage at reduced rates compared to competitors.
Top Features of Coverage
biBerk provides robust core workers’ compensation coverage as well as value-added support. Key features include:
- Injury/illness coverage for incidents arising out of the workplace.
- Medical treatment, rehabilitation, and wage replacement.
- Disability and death benefits for severe injuries or fatalities.
- Employer liability protection in the event of lawsuits.
- Ability to collect certificates of insurance from contractors.
- Fast and easy claims submission process online.
- Access to small business insurance experts for guidance.
Coverage Offered
biBerk offers customizable workers’ compensation policies to meet different small business needs across industries like healthcare, construction, retail, restaurants, professional services, and more. Their coverage includes:
- Guaranteed cost policies with no surprises at audit.
- Options for deductibles to offset premium costs.
- Add-on coverage like employer’s liability.
- Coverage for part-time, seasonal, and temporary workers.
- Simplified classification codes for accurate rates.
- Compliance with regulations in all 50 states.
Cost of Coverage
biBerk provides quotes online or over the phone allowing small businesses to easily compare costs. Average premiums range from $0.75 to $2.74 per $100 of payroll, varying based on the unique characteristics of each business.
biBerk leverages its direct structure to reduce rates by up to 20% versus its competitors. Their digital processes also increase efficiency. Expert guidance ensures customers get properly priced policies to fit their budget.
#3 – Best Global Workers’ Comp Insurance: Chubb
Chubb is a leading commercial property and casualty insurer that has been in business for over 130 years. Chubb provides insurance products tailored for middle market and small business customers across industry sectors. The company is known for its exceptional claims services and financial strength. Chubb’s small business division offers customized workers’ compensation coverage.
What Makes Chubb One of the Best?
Chubb aims to make the workers’ compensation claims process smooth, empathetic, and efficient for small businesses. They provide robust medical management services and specialized support to help guide employers and get injured staff healthy and back to work. Key advantages include:
- Nurse case managers with medical expertise to assist claims adjusters.
- Online claims reporting and management for convenience.
- Commitment to contact within 24 hours on lost time claims.
- Deep expertise in local regulations to resolve claims quickly.
- Access to high-quality medical care at reasonable rates.
Top Features of Coverage
Chubb offers comprehensive workers’ compensation coverage plus added benefits like:
- Protection for businesses with 1 to hundreds of employees.
- Medical and wage replacement for injured employees.
- Coverage options e.g. waiver of subrogation, employer liability.
- International travel insurance through foreign package policy.
- Pharmacy program for safety in medication dispensing.
- Special investigations unit to identify potential fraud.
- Online claims reporting and forms access.
- Robust core workers’ compensation plus value-added support services.
Coverage Offered
Chubb provides customizable workers’ compensation policies to meet different small business needs, including:
- Injury/illness compensation for workplace incidents.
- Flexibility in employer liability limits.
- Coverage for part-time, seasonal, and temporary staff.
- Tailored options by class codes and industry.
- Protection across jurisdictions with local expertise.
- Ability to integrate with existing business policies.
Cost of Coverage
Chubb does not provide estimates for the cost of its workers’ compensation insurance policies. Prospective customers can visit their website to get a quote from a Chubb agent. These quotes are tailored to the business’s needs, state where its headquartered, and industry.
#4 – Largest Workers’ Comp Company in the US: Travelers
Travelers is the largest workers’ compensation insurance provider in the US, serving customers of all sizes. They have extensive experience and specialized expertise working with this type of product, along with innovative capabilities and strong financial backing. Travelers aims to simplify workers’ compensation for employers while caring for injured staff.
What Makes Travelers One of the Best?
Travelers strives to make the claims process smooth and facilitate return to work through compassionate and proactive services. Here’s what makes them one of the best workers’ comp insurance for small business:
- 500+ in-house medical professionals to guide treatment.
- Over 2,000 claims professionals are available to handle claims rapidly and easily.
- At-work-safety educational resources are provided to help customers prevent workplace accidents.
- Travelers offers investigative teams to assist with potential fraud claims.
- Industry-tailored solutions using their deep experience.
- Travelers combines responsive claims handling with robust risk management support.
Top Features of Coverage
Travelers offers complete workers’ compensation coverage plus value-added services like:
- Medical care, treatment, and rehabilitation benefits.
- Wage replacement for lost income during recovery.
- Employer liability protection in lawsuits.
- Access to prescription drug formularies.
- Dividend programs to return unused premium.
- Managed care plans to optimize treatment quality and costs.
- Travelers provides core injury coverage with added capabilities.
Coverage Offered
Travelers provides customizable workers’ compensation policies including:
- Guaranteed cost and loss-sensitive plans.
- Deductible options to reduce premium.
- Tailored solutions for every company size and industry.
- Integrated products to address gaps and reduce risks.
- Coverage-compliant in all states.
Cost of Coverage
Travelers leverages its scale, data, and risk-management expertise to offer competitive workers’ compensation rates based on factors like location, payroll, and claims history. They have enough multi-industry expertise to craft customized policies at the best cost. Superior services and capabilities come standard without premium pricing.
#5 – AmTrust
AmTrust Financial is a property and casualty insurer that provides commercial insurance products for small and mid-sized businesses. The company holds an ‘A- Excellent’ financial strength rating from AM Best. AmTrust leverages its expertise to offer customizable workers’ compensation policies with strong coverage and service.
What Makes AmTrust One of the Best?
AmTrust aims to make workers’ compensation smooth and straightforward for employers when workplace incidents occur. The key advantages of its products include:
- Claims experts that efficiently handle injury submissions.
- Proactive benefits management to facilitate employee recovery.
- Network of appointed agents with compensation expertise.
- Flexible packages and affordability for small companies.
Top Features of Coverage
AmTrust provides complete workers’ compensation coverage plus additional support:
- Medical treatment and rehabilitation benefits for injured employees.
- Wage replacement for time away recovering.
- Legal/expert assistance with claims and cases.
- Advice on regulations, class codes, and underwriting.
- Fraud investigation services to manage suspicious claims.
- Ability to exclude coverage for specific violations.
Coverage Offered
AmTrust offers customizable workers’ compensation policies:
- Guaranteed cost and deductible options.
- Industry-specific tailored premium calculations based on present risks and other factors.
- Coverage for part-time, seasonal, and temporary staff.
- Integrated packages with other commercial policies.
- Protection plans for businesses in any state.
- Add-on features like employer’s liability.
Cost of Coverage
Premiums vary based on payroll, occupation, industry risk, and other factors. AmTrust leverages its dedicated network of agents to provide cost-effective rates. Policyholders benefit from the financial strength, expert claims management, and outstanding service that comes with the AmTrust name without paying a premium.
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Is the Best Workers’ Comp Insurance Worth It for My Small Business?
Workers’ compensation insurance can be considered an investment for small business owners. Though it adds overhead costs, the protections and risk mitigation that workers’ compensation insurance provides make it a critical component of any business’s risk management policy.
In most states, workers’ compensation is legally required as soon as you hire staff. Failing to comply can lead to substantial fines and penalties. More importantly, workers’ comp insurance provides a safety net for your employees if they are injured on the job. It covers their medical treatment, rehabilitation, and lost wages so they can recover without financial devastation.
For the business, workers’ comp reduces the risks of expensive accident liability costs and lawsuits that could put the company out for good. While premiums cost money upfront, those costs pale in comparison to the severe consequences owners face without coverage.
Workers’ compensation allows small businesses to operate with confidence rather than fear, knowing that their staff and the company itself are protected. When weighing the pros and cons, workers’ comp insurance is almost indispensable to ensure the continuity of a small business.