Average Cost of Workers’ Compensation Insurance [2026]

average workers' compensation cost by state map

Workers’ Compensation Insurance Overview: As a critical safety net for employees across the U.S., workers’ compensation insurance provides financial support in the event of an injury. The average cost of this insurance can fluctuate based on several factors, including the state in which a business operates and the specific industry.

If you’re an employer or a job seeker interested in understanding the current landscape of workers’ compensation costs, you’re in the right place. Our recent analysis reveals the following insights:

Key Takeaways:

The average cost of workers’ compensation insurance is $936 per employee annually, equating to $78 per month.
46% of workers’ comp costs exceed $150 per month.
40% of small businesses pay between $30-$60 per month for workers’ compensation insurance.
The construction and contracting industry experiences the highest average workers’ compensation costs at $254 per month.
The finance and accounting sector boasts the lowest average costs, with premiums around $33 per month.

average workers' comp costs by bracket

Average Workers’ Compensation Costs by State

Workers’ compensation costs differ significantly by state, with some states imposing much higher costs than others. For instance, New Hampshire has the highest average cost in the U.S., at $106 per month. Other high-cost states include Wisconsin ($85) and Kansas ($56).

In contrast, states with the lowest workers’ compensation costs feature averages of only $16 per month. These states include:

For a deeper understanding of the average costs of workers’ compensation by state, here are the average monthly premiums:

Average Cost of Workers’ Compensation by State

State	Average Monthly Premium
Alabama	$28
Alaska	$28
Arizona	$23
Arkansas	$28
California	$23
Colorado	$26
Connecticut	$21
Delaware	$38
Florida	$24
Georgia	$17
Hawaii	$35
Idaho	$16
Illinois	$50
Indiana	$16
Iowa	$34
Kansas	$56
Kentucky	$33
Louisiana	$39
Maine	$48
Maryland	$35
Massachusetts	$16
Michigan	$19
Minnesota	$16
Mississippi	$16
Missouri	$42
Montana	$16
Nebraska	$25
Nevada	$23
New Hampshire	$106
New Jersey	$16
New Mexico	$26
New York	$16
North Carolina	$22
North Dakota	N/A
Ohio	N/A
Oklahoma	$26
Oregon	$16
Pennsylvania	$23
Rhode Island	$16
South Carolina	$42
South Dakota	$42
Tennessee	$33
Texas	$16
Utah	$16
Vermont	$39
Virginia	$24
Washington	N/A
West Virginia	$39
Wisconsin	$85
Wyoming	N/A

Average Workers’ Compensation Costs by Bracket

The distribution of companies paying various levels of workers’ compensation costs shows notable trends. To better understand this, here are detailed charts:

average workers' comp costs for SMBs

Average Monthly Cost of Workers’ Compensation for SMBs

Average Monthly Cost	Share of Small Businesses
Under $30	23%
$30-$60	40%
$60+	37%

For small businesses, the most common workers’ compensation cost falls between $30 and $60, with 40% of them in this range, while 37% pay over $60 monthly.

When we look at the average monthly workers’ compensation costs across all companies, the figures rise significantly. Consider the following chart:

Average Monthly Cost of Workers’ Compensation by Bracket

Average Monthly Cost	Share of Companies
Under $25	4%
$25-$45	5%
$45-$75	16%
$75-$100	11%
$100-$150	18%
$150+	46%

In this case, nearly half of all companies pay over $150 monthly for workers’ compensation insurance, while only 9% pay less than $45 monthly.

Average Workers’ Compensation Costs by Number of Employees

Typically, small businesses experience lower workers’ compensation insurance costs due to having fewer employees. For example, the average monthly cost for a business with just one employee is approximately $35, while those with 10 or more employees average $116 per month.

average cost of workers' comp by number of employees

Average Cost of Workers’ Compensation by Number of Employees

Number of Employees	Average Monthly Cost
1	$35
2	$40
3-5	$56
6-9	$79
10+	$116

Average Workers’ Compensation Costs by Industry

One of the most significant factors affecting workers’ compensation insurance costs is the industry of employment. Industries that present a higher risk of injury typically incur greater costs.

For instance, the construction and contracting sector has the highest average workers’ compensation costs at $254 per month.

Conversely, the finance and accounting sector enjoys the lowest average costs, averaging just $33 per month.

Here are the details:

Average Cost of Workers’ Compensation by Industry

Industry	Average Monthly Cost
Finance & Accounting	$33
IT/Technology	$34
Insurance Professionals	$36
Consulting	$37
Media & Advertising	$42
Building Design	$44
Professional Services	$45
Therapy & Counseling	$47
Real Estate	$47
Healthcare Professionals	$54
Photo & Video	$58
Sports & Fitness	$64
Personal Care	$70
Retail	$83
Food & Beverage	$107
Cleaning Services	$147
Manufacturing	$150
Landscaping	$177
Installation Professionals	$229
Construction & Contracting	$254

Workers’ Compensation Insurance FAQ

What is the average workers’ compensation claim?

The average workers’ compensation claim is $41,353 per person. Injured employees’ claims can vary significantly based on the injury type. For instance, severe injuries may cost upwards of $100,000, while less severe injuries may be around $20,000. Generally, the payout is usually less than the initial claim amount.
What is the average workers’ compensation payout?

The average workers’ compensation payout is $22,535. This represents a 45% reduction from the average claim, illustrating that workers often receive less than expected. Typically, workers receive about two-thirds of their wages during their recovery period.
What are the most common workers comp injuries?

Traffic and automobile accidents are the most frequent causes of workers’ comp injuries. Other common injuries include slips, trips, and falls. Specific common injuries are:
- Lacerations
- Burns
- Contusions
- Fractures
- Strains
- Eye injuries
- Sprains
How many categories of work-related injuries are there?

There are three primary categories of work-related injuries. These include:
- Compensable Injuries. These injuries occur while the worker is performing job-related duties, ranging from minor cuts to severe fractures, often seen in high-risk occupations like construction.
- Occupational Illnesses. These are illnesses developed as a result of work activities, including conditions like carpal tunnel syndrome and respiratory diseases.
- Mental Health-Related Issues. Some jobs may lead to mental health challenges, such as PTSD, which can also be covered under workers’ compensation.

Conclusion

Workers’ compensation insurance is an essential consideration for every employer, particularly those in high-risk industries. While the average monthly cost is $78, the actual expense for your company will be influenced by various factors, including industry type, employee count, and geographic location.

Overall, the cost is nearly evenly distributed between companies spending less than $150 monthly and those exceeding that amount. Businesses in high-risk sectors with larger workforces can expect to pay more, while low-risk small businesses with fewer employees generally enjoy lower premiums.

References

BLS – Workplace Injuries

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.

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