Workers Compensation Insurance Cost Per State in 2026

Workers’ Compensation Insurance, also known as Workman’s Compensation Insurance, is a government-mandated insurance program that provides employees with benefits if they are injured as a result of work-related injury or illness with medical, disability, and rehabilitation insurance.

In almost all states, businesses are required by law to have workers’ compensation insurance, with a few exceptions. Let’s have a look into worker’s compensation insurance by state.

Workers Comp Insurance in New York

New York usually jumps between first and second place on the list of the most expensive workers’ compensation insurance plans in the country. Currently, he ranks second only to New Jersey, with a premium index rate averaging $2.23 per $100 salary.

Most states adhere to the National Compensation Insurance Council (NCCI) and its data classification and Experience Modification Rate (EMR). However, in New York, rates are calculated based on several factors that vary from company to company and are regulated by the New York Compensation Insurance Rating Board (NYCIRB).

Top Workers Comp Insurance Companies in New York

1. State Insurance Fund Workers’ Comp
2. Travelers
3. The Hartford
4. AmTrust Financial
5. Chubb

Workers Compensation California

Workers’ comp insurance cost differs from state to state as they are not regulated at the federal level. California currently has her fourth-highest working premium in the US with an index rate of his $2.16. Only track the following states:

• New Jersey: $2.52
• New York: $2.23
• Vermont: $2.21

Top Workers Comp Insurance Companies in California

1. State Compensation Insurance Fund
2. Berkshire Hathaway
3. ICW
4. The Hartford
5. Travelers

Workers Comp Texas

Texas law is different, employers are not required to have employee compensation insurance. Limited exceptions to this rule may include:

• Companies that enter into building or construction contracts with government agencies
• Public or educational employers
• Independent contractors may not have employer insurance and may be required to provide proof of employment

As per NCCI that average rate per $100 of payroll has fallen from his $2.32 in 2003 to $0.86 in 2015.

Declines in claims and injuries show that jobs in Texas is a safe state, and lower premium rates are encouraging employers to purchase workers’ compensation insurance.

Top Insurance Companies in Texas

1. Texas Mutual Insurance Co.
2. Travelers
3. Liberty Mutual
4. The Hartford
5. Zurich

Workmans Comp Michigan

As per nationwide, Michigan has the lowest rates in the country, averaging less than $1.50 per $100 salary.

The cost of workers’ compensation insurance depends in part on the rate assigned to your business. Michigan’s Compensation Advisory Board acts as the state’s rating agency and sets advisory rates for each classification code.

Top insurance companies in Michigan

1. AF Group
2. Travelers
3. Liberty Mutual
4. The Hartford
5. Chubb

Top 5 States with the Highest Workers’ Compensation Costs

As of 2020 data, the following are the five states that have the highest worker’s compensation costs:

States with the Lowest Workers Compensation Insurance Costs