Workers Comp Cost Calculator
Calculate 2026 workers' compensation insurance costs by annual payroll, industry risk class, and state — required for most employers with W-2 employees.
Enter Your Details
What Affects the Cost?
1. How Workers Comp Is Priced
Workers' comp premiums are calculated as: (Annual Payroll ÷ 100) × Class Code Rate × Experience Mod. Class code rates range from $0.20/100 (clerical work) to $15+/100 (roofing, logging). Most office-based employees fall in the $0.50–$2.00 range. Rates vary significantly by state.
2. Industry Risk Classes
Low risk (clerical, office, tech): $0.20–$1.00 per $100 payroll. Moderate risk (retail, restaurants, light manufacturing): $1.00–$3.00 per $100. High risk (construction, landscaping, trucking): $3.00–$8.00 per $100. Extreme risk (roofing, logging, scaffolding): $8.00–$15.00+ per $100.
3. Experience Modification Rate
After 3+ years in business, your EMR adjusts your premium based on claims history. EMR of 1.0 = average; 0.80 = 20% discount (safe workplace); 1.25 = 25% surcharge (poor claims history). Implementing safety programs, OSHA training, and return-to-work programs lowers your EMR over time.
2026 Cost Reference Table
| Type / Option | Typical Cost Range |
|---|---|
| Clerical / office workers | $0.20 – $0.80 per $100 payroll |
| Retail / restaurant workers | $1.00 – $3.50 per $100 payroll |
| Light manufacturing / warehouse | $2.00 – $5.00 per $100 payroll |
| Construction / trade workers | $3.00 – $8.00 per $100 payroll |
| Roofing / high-risk trades | $8.00 – $15.00 per $100 payroll |
| 10 employees @ $50K avg (office) | $1,000 – $5,000/year |
Frequently Asked Questions
For office/clerical workers at $50,000/year salary, workers' comp costs $100–$400/year per employee. For construction workers at the same salary, it's $1,500–$4,000/year. The rate depends heavily on job classification and state — get a quote based on your actual class codes.
Generally no — independent contractors (1099) are not employees and workers' comp isn't required. However, some states (CA, FL, CO) have strict rules about contractor classification. Misclassifying employees as contractors can result in significant penalties and back premiums.
Operating without required workers' comp is illegal in most states. Penalties include fines of $1,000–$10,000+, criminal charges in some states, liability for all injured employee medical costs and lost wages, and stop-work orders that shut down your business operations.
Compare Workers Comp Quotes
Workers' comp rates vary 20–40% between insurers. Compare quotes before your next policy renewal.
Your Estimate
Low
—
Average
—
High
—
Cost Breakdown
Cost Itemization
| Category | Amount | % |
|---|
Tips Before You Start
- ✓ Workers' comp is legally required in most states for any W-2 employee
- ✓ Rates are set per $100 of payroll — reducing overtime can lower your premium
- ✓ Experience modification rate (EMR) rewards safe workplaces with lower premiums
- ✓ Pay-as-you-go workers' comp (tied to payroll) eliminates large audit adjustments
- ✓ Independent contractors (1099) generally don't require workers' comp coverage
Cost by State — 2026
Based on national average pricing adjusted for local labor and material costs.
Alabama
$990 – $1,716
$1,320
Alaska
$1,631 – $2,828
$2,175
Arizona
$1,091 – $1,892
$1,455
Arkansas
$934 – $1,619
$1,245
California
$1,665 – $2,886
$2,220
Colorado
$1,260 – $2,184
$1,680
Connecticut
$1,440 – $2,496
$1,920
Delaware
$1,215 – $2,106
$1,620
Florida
$2,081 – $3,608
$2,775
Georgia
$1,069 – $1,853
$1,425