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How much does workers' compensation insurance cost for a small business?

Business insuranceBuying a policyChecked Nov 6, 2026

From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-06 · Source: Texas Department of Insurance · Workers' compensation rate guide · About the rate guide View original ↗

In short

No one price fits all. It depends on your payroll and job types.
Ask for quotes. Rates differ from one company to the next.
Past claims can raise or lower your price.

What this means

The sources give no single price. Texas explains how the price is built. Each worker's pay is placed in a job class based on the type of business. The total pay in each class is multiplied by the company's rate for that class. The rate is stated per $100 of payroll [1]. The sources do not give an average price.

Rates are not the same at every company [2]. Texas shows one example. A roofing job class had a base cost of 1.946, and a company that multiplies it by 1.50 would charge 2.919 per $100 of payroll [3]. That is only an example for one job class, not a typical price.

Your own claim history can change the price. An experience rating modifier that reflects the employer's past loss history may be applied to the premium [4]. These pages are from Texas. Other states set workers' compensation prices in other ways.

Your next step

Add up your yearly payroll for each kind of job, then ask two or three agents for quotes on the same payroll. Ask each one which class codes and which experience modifier they used. In Texas, you can also open the state rate guide to compare companies. The sources give no deadline.

Check it yourself

Open the TDI rate guide and read the section on how classes and rates work. Ask your agent for the class code, rate, and modifier on your quote. The sources do not give a typical dollar price, and they do not cover states other than Texas — "Don't know yet".

Where this comes from (5)

[1] Texas Department of Insurance · Workers' compensation rate guide · About the rate guide · checked 2026-11-06
The total payroll for each classification is then multiplied by the company's rate for that classification (rate per $100 payroll) to determine premium.
[2] Texas Department of Insurance · Workers' compensation rate guide · About the rate guide · checked 2026-11-06
Companies must use Texas classifications, but the rates for the individual classifications differ from one company to another.
[3] Texas Department of Insurance · Workers' compensation rate guide · About the rate guide · checked 2026-11-06
If a company files an LCM of 1.50, then the rate for Code 5551 is 2.919 (1.946 X 1.50 = 2.919) per $100 payroll.
[4] Texas Department of Insurance · Workers' compensation rate guide · About the rate guide · checked 2026-11-06
An experience rating modifier that reflects the employer’s past loss history may be applied to the premium.
[5] Texas Department of Insurance · Employer FAQ · Costs and how to buy coverage · checked 2026-11-06
TDI has information on this web site including a rate guide for comparison; or you may contact an insurance agent near you.

How we found this

We matched your question to 5 official sources, quoted the exact lines, and re-checked each quote against its source on 2026-11-06.

What we don’t know yet

Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.

Every answer is checked against the official rule it quotes.

Information only — not legal advice. Your plan, insurer or agency decides.

This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.

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