Next Insurance

Workers’ Compensation Insurance

Protect your employees for as low as $14/month.

Workers' Compensation Insurance
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Make sure your business meets your state requirements with workers’ comp coverage 100% designed for small businesses. It can help pay for:

Medical expenses

Medical expenses

Everything from examinations and treatments to rehabilitation.

Lost wages

Lost wages

Enables employees to fully recover from an injury before returning to work.

Survivor benefits

Survivor benefits

Supports families by covering funeral costs and income replacement.



Helps employees who need to learn skills and enter a new field.

Permanent injury

Permanent injury

Takes care of employees who can no longer work due to injury.

Employers liability

Employers liability

Protects your business from financial losses if an employee files a lawsuit against you.

Here is NEXT’s guide to Workers’ Comp insurance:


What is Workers’ Compensation insurance?

Workers’ compensation provides a safety net for you and your employees after a workplace injury. It can help cover expenses for medical treatment, lost wages and other costs.

It's an essential component of your small business insurance package that protects you and your employees from financial harm. You're required to purchase coverage in most states as soon as you hire your first employee.

Get Workers’ Compensation in minutes with NEXT

We offer a painless and seamless way for you to explore workers' comp coverage options for your business. Simply start an instant quote, provide a few details about your operations and review your options online.

Start an instant quote today to explore options for your business.

Why is Workers’ Compensation insurance important?

The workers’ compensation system was created to ensure workers are taken care of if they are hurt on the job, while also protecting business owners from significant financial losses after an accident.

For example, if a heavy beam lands on a construction worker's foot and causes a compound fracture, workers’ compensation can cover medical expenses and lost wages during the recovery. Without insurance, the employer could be responsible for all related costs, which could add up to tens of thousands of dollars.

Workers’ compensation is not just limited to high-risk jobs. Repetitive-motion injuries (i.e., carpal tunnel), slip-and-fall accidents and strains are more common than you might think at relatively safe desk jobs.

There are several reasons why workers’ compensation is a good investment for your business:

Most states require Workers’ Comp

Because of the essential nature of workers’ compensation coverage, it is legally required in most states for businesses with employees. There can be significant penalties for non-compliance, ranging from fines to felony criminal charges in the most extreme cases.

It's essential to know the workers’ comp requirements in the states where you do business. For example, Colorado requires coverage as soon as you hire an employee. Workers’ comp in Texas is optional, but many businesses and government contractors will ask you to have coverage.

It protects employees — and business owners

Workers’ compensation coverage protects employees and business owners like you. Let's say human error, equipment malfunction or just plain bad luck leads to an employee breaking his leg. He's going to need X-rays, possibly surgery, physical therapy and several weeks of recovery until he can do his job again.

Workman's comp insurance can help pay for all those expenses. Otherwise, the business owner would most likely be responsible for covering costs out of pocket.

Even if you are a sole proprietor, you may want to consider getting workers’ comp insurance business owners coverage. Your policy can help you in cases that aren't covered by your health insurance. For example, your health insurance may exclude workplace accidents that would typically be covered by workers’ comp.

It proves you don't cut corners

A trusting relationship between employers and employees can make a significant difference in productivity levels. When employees know that you have their back in both good times and bad, they are more invested in their work and focused on the job at hand.

Proving you take care of your employees will help you attract and retain the best workers in your area.

Once you purchase coverage, you'll have instant access to your certificate of insurance 24/7 from a mobile device or computer.

What does Workers’ Compensation cover?

Workers’ compensation coverage is almost always required if you have employees as it partially covers medical bills and lost wages for those who are injured on the job. Business owner’s coverage helps to protect yourself if you don’t have employees. 

Workers’ comp can help pay for:

  • Medical expenses
  • Lost wages
  • Survivor benefits in the event of an employee death
  • Employer liability

Learn more about what workers’ compensation insurance covers.

Do I need Workers’ Comp if I am self-employed?

A common misconception about workers’ compensation is that it’s only needed when a business has employees. In fact, many self-employed workers, sole proprietors and independent contractors purchase coverage for the financial protection it provides or to meet contract requirements with clients. 

It’s required to get a license for some professions, especially in construction. For example, many states ask for proof of workers’ comp insurance with their general contractor license requirements.

If you don’t have workers’ comp and you are injured at work, you also might not be covered by your personal health insurance. It’s important to read your policy documents carefully to make sure you are protected.

If you need to quickly obtain coverage to satisfy a client, bid, or professional license requirement, you can instantly access your certificate of insurance as soon as you purchase a policy.

How much does Workers’ Compensation cost?

Workers’ compensation cost can start as low as $14 a month. Several factors are used to determine the cost of workers’ compensation insurance, including the number of employees at your business, your payroll, the location of your business and other details.

If you are exposed to more risks, you typically pay more for insurance, regardless if you’re purchasing workers’ comp coverage, general liability insurance or another type of business insurance.

That’s why there’s a significant difference between insurance costs for construction businesses and accountants. Both types of businesses face risks every day, but there’s more exposure for construction workers at job sites with raw materials, heavy machinery and power tools. 

Other factors that influence the price of your coverage:

The number of employees and payroll at your business

No matter where you purchase insurance, you’ll need to share: 

  • How many employees work at your business
  • The type of work they do
  • Your total payroll

These factors are combined with state pricing guidelines to calculate your workers’ comp costs. If most of your employees work at desk jobs, you’ll typically pay less than a business where employees work at a job site.

Where you do business

Workers’ compensation is highly regulated at the state level. This influences the cost of your coverage. The price you pay is determined, in part, by the state where you do business. If you have employees in multiple states, you’ll need to meet the requirements of each state.

Your claims and coverage history

Having a history of workers’ compensation claims and workplace injuries can affect the price of a new policy.

Get a Workers’ Compensation quote for your business

You can find out how much workers’ compensation will cost your business by completing a free instant quote with our easy online application. 

Once you start a quote, we’ll ask for some necessary information about your employees, payroll and operations. 

The whole process takes about 10 minutes, and our U.S.-based insurance advisors are available if you have any questions.

How do I get Workers’ Comp insurance?

With NEXT, you can get covered in less than 10 minutes, 100% online.

Workers’ compensation is a bit more complicated than other types of business insurance since it is highly regulated by state governments and it requires more information about your business than other policies. 

We work hard to simplify the process with a painless and seamless online application so you can get back to focusing on your business.

The first step to getting the coverage you need is starting an instant quote. We’ll ask you some questions about your business so we can customize a policy to meet your needs.

You should be prepared to share details about:

  • The type of work you do
  • Where you do business
  • The type of business you own and how many years you have been in business
  • The number of employees at your business
  • Total payroll
  • The type of work your employees do
  • Your federal employer identification number. You can typically find this on your tax documents, or apply for one online with the IRS.

If you have any questions about the process or your coverage options, our licensed U.S.-based insurance advisors are standing by to help.

You can also save time and up to 10% by bundling other types of business insurance with your workers’ comp policy (Note: Coverage and discount eligibility may vary from state to state).

Workers’ compensation insurance requirements by state

More frequently asked questions

Learn about workers’ comp insurance with more frequently asked questions about our coverage.

Getting hurt while on the job is not a situation anyone wants to consider, but it happens more often than you might think. More than 4.5 million people experience an injury at work each year.¹

Workers’ comp can help you cover medical bills and lost wages if you or an employee experience a workplace injury. Here are some of the most common questions people ask us.

If you don’t find find the answers you’re looking for, our licensed insurance advisors are standing by to help.

Does Workers’ Compensation cover business interruption?

Worker’s compensation is for work-related injuries or illness. If your company is temporarily out of business because and you can’t pay your employees, that falls under business interruption coverage.

Business interruption is a type of property insurance that covers the loss of income that a business suffers after an unexpected event, such as a fire or snow storm. For example, if a wind storm hits your city and a tree falls on your shop, business interruption insurance will help cover lost income.

Does Workers’ Compensation insurance provide coronavirus coverage?

Workers’ compensation insurance protects employees and business owners from financial losses after a workplace injury or illness. A successful claim can reimburse medical bills, rehabilitation costs, lost wages and other expenses.

In many cases, a workers’ comp policy will not provide coverage if an employee experiences a coronavirus infection. However, those who can confirm they were infected at their workplace, could be eligible for coverage.

Since business interruption coverage is not included in workers’ compensation, any loss of income related to the coronavirus is not covered.

Each state has unique laws for what a workers’ comp policy covers, so it’s important to review your specific policy and how it applies to where you and your employees work. We review workers’ comp claims on a case-by-case basis.

Does Workers’ Compensation cover my subcontractors?

Workers’ compensation generally does not cover subcontractors because they’re independent of your business — that is, they are not your employees.

However, if you regularly work with subcontractors, you’re still responsible for checking that they have their own workers’ comp and for keeping those certificates on file. If your subcontractors don’t have this you need to report what you pay them on your payroll.

Workers’ compensation is heavily regulated by each state, and many states have subtle differences in the requirements. It’s important to carefully read your policy documents.

I'm the owner of the company. Am I covered by workers’ compensation if I'm injured on the job?

Injuries to business owners can only be covered by the business owners’ coverage in workers comp. If you’re the owner of the company and you trip and break your hand at your work site, you could be eligible to get help with your medical bills and lost wages.

Personal health insurance might not cover medical fees for work-related injuries — especially if you’re in the construction industry — so getting workers’ comp for yourself as a business owner offers you an extra layer of protection.

Who is exempt from Workers’ Compensation insurance?

Every state except for Texas requires workers’ comp for employees. However, each state also typically has a short list for who is exempt from having coverage. It’s important to check the insurance requirements where you work.

Independent contractors are often exempt from workers’ compensation requirements laws, as well as sole proprietors, partners or LLC members. But It’s common for people in these roles to still purchase insurance so they can get help with their medical expenses and lost wages.

Some states don’t make it a requirement for certain types of workers to have workers’ comp, such as:

  • Agricultural employees
  • Domestic workers
  • Real estate employees
  • Coaches for children’s teams

Be sure to check the exemptions in your state before you decide to buy workers’ compensation insurance or not.

Do business owners without employees need to buy workers’ compensation?

If you’re a business owner without any employees, your are probably not required by law to have workers’ compensation, particularly if you’re a sole proprietor, partner or LLC member. However, that might not be the case for more regulated industries, such as construction.

Even if it’s not legally required, you could still be asked by your clients for proof of insurance. Having a certificate of insurance for workers’ comp lets clients know you have coverage if you get injured while working for them.


Do contractors need Workers’ Compensation insurance for themselves?

If you’re a sole proprietor or independent contractor without any employees, you usually aren’t required by law to get workers’ comp. However, the construction industry is often regulated differently and you might be required to have coverage before you take any jobs.

Regardless if it’s required by law, it can be a good idea to have an active workers’ comp policy. If you get sick or injured on the job, workers’ comp would help cover medical bills and some of your lost wages.

If you’re a sole proprietor or independent contractor with employees, you’ll probably need to get workers’ compensation for them unless you work in Texas.

Learn more about workers’ compensation for contractors.

What’s the difference between Workers’ Compensation and disability insurance?

Workers’ compensation only provides financial help for injuries that happen at work. Disability insurance covers injuries that happen outside of work and is divided into short-term and long-term disability.

It is the employer’s responsibility to pay for workers’ compensation insurance, and it’s usually required by law. Disability insurance is typically optional and costs are often shared between the employer and employee.

Learn more about the differences between workers’ compensation and disability insurance.

Does workers’ compensation pay disability benefits?

Workers’ comp benefits are separate and distinct from state disability benefits. If a work injury results in a permanent injury that renders you unable to return to work, workers’ comp may pay some kind of permanent injury benefits, but it varies from state to state.

You’ll need a workers’ compensation doctor to verify that your disability was caused by your work conditions, and that your disability is not going to improve. This is called “maximum medical improvement,” or MMI.

If you hurt your lower back from lifting too many heavy boxes at your moving company and can’t work anymore, a doctor will rate your disability (stated as a percentage) and determine the degree of permanent limitation.

Permanent total disability means you can’t return to work at all in any field. Permanent partial disability refers to a lasting impairment that sticks around after the initial injury or illness, such as hearing loss. These types of cases are the most common workers’ comp cases.

How is workers’ compensation different from health insurance?

Workers’ compensation covers medical expenses and some lost wages after an accident at the workplace. Health insurance covers personal injuries and ailments that happen outside of work.

Say you trip getting out of your van while working with an employee to deliver a sofa and break your leg — that would be covered by workers’ comp if you have owner's coverage with your policy. But if you’re bringing a sofa to your buddy’s house on the weekend and break your arm, you would need health insurance to cover those costs.

Health insurance will cover a lot of your medical expenses, but it won’t cover any lost wages while you’re recovering after a workplace injury.

Learn more about the differences between workers’ comp and health insurance.

What are the Workers’ Compensation rules in my state?

Workers’ compensation exemptions vary from state to state, so make sure you review the rules in your state before making your decision.

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Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to get the coverage that fits your business.

General Liability insurance
General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance
Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers' Compensation Insurance
Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto Insurance
Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment Insurance
Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property Insurance
Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy Insurance
Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.