Workers comp insurance costs about $76 to $86 a month for a small business in 2026
Progressive Commercial says its new customers paid a median of $76 a month for workers comp in 2025, with an average of $121. The Hartford says its small business customers pay an average of $86 a month, or $1,032 a year, and $81 for those with under $300,000 in payroll.
What small businesses pay for workers comp, by insurer
| Progressive, new customers 2025 (median) | $76 a month |
|---|---|
| Progressive, new customers 2025 (average) | $121 a month |
| The Hartford, small business customers (average) | $86 a month, $1,032 a year |
| The Hartford, payroll under $300,000 (average) | $81 a month |
| The Hartford, lowest policies | From $13 a month |
The Hartford also publishes state averages. For example, its California customers average about $160 a month. Your state's rules change the price a lot. Sources: Progressive Commercial, workers compensation insurance cost (2025 new customers); The Hartford, how much does workers comp insurance cost (its small business customers).
What changes your price
- Payroll. The Hartford says the price is set per $100 of payroll, so a bigger payroll costs more.
- Job risk. A logging crew pays far more than an accounting office.
- State rules. Progressive says each state has its own rules for workers comp.
- Claims history. Fewer past injuries can lower the price.
How the price is worked out
Workers comp is priced differently from other business insurance. The insurer takes your payroll, divides it by 100, and multiplies it by a rate set for your type of work in your state. That is why two businesses with the same number of workers can pay very different amounts.
Most states require it once you have employees. If a private insurer will not cover you, many states run a fallback pool.
How to judge the quote in your hand
- Check that each worker is in the right job class.
- Check the payroll figure the quote uses.
- Ask if the price will be checked again at year end, called an audit.
- Ask how a claim would change next year's price.
Ways to pay less
- Put each worker in the right job class.
- Improve safety and training to cut claims.
- Ask about a pay as you go plan that follows your real payroll.
How we got these numbers
Every number on this page comes from an insurer's own page, from what its customers really paid. We use the median when the insurer gives one. The median is the middle price: half of buyers paid less and half paid more. An average can be pulled up by a few very expensive policies, so we show it only as a second number. Where two insurers give a median, the range above runs from the lower one to the higher one. We do not add our own guesses, and this page has no calculator because no insurer publishes how each choice moves the price. All numbers were checked on September 26, 2026.
Common questions
How much is workers comp a month?
The median is $76 a month at Progressive Commercial. The Hartford's customers average $86.
How is workers comp calculated?
A rate per $100 of payroll, set by your type of work and your state.
Why is the average higher than the median?
A few high risk businesses pay a lot, which pulls the average up to $121 at Progressive.
Is workers comp required?
Most states require it once you have employees. Check your state's rules.