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When an LLC needs workers’ comp
Workers’ compensation is regulated state by state. In most states, an LLC with employees must carry it; some states set a minimum number of employees, and rules differ for agriculture, construction and domestic work. Not carrying required coverage can lead to fines, stop-work orders and personal liability for injury costs.
Because the rules change by state, confirm with your state’s workers’ compensation agency before your first hire. Payroll providers such as Gusto can help keep coverage and payroll in sync.
Do LLC owners need to be covered?
Many states let LLC members exclude themselves, and some let them opt in so their own injuries are covered. Single-member LLCs with no employees usually aren’t required to buy it — but general contractors often require subcontractors to show a policy anyway.
How much workers’ comp costs
Insureon’s median is $54 a month ($643 a year); 47% of its customers pay under $50 a month.
| State | Median/month |
|---|---|
| California | $63 |
| Florida | $65 |
| Georgia | $61 |
| New York | $43 |
| Texas | $34 |
| Industry | Median/month |
|---|---|
| Consulting | $40 |
| Technology / IT | $34 |
| Healthcare | $60 |
| Food and beverage | $106 |
| Cleaning | $136 |
| Landscaping | $169 |
| Installation | $193 |
| Construction | $254 |
Get covered
NEXT Insurance
General liability from $19/mo
- Buy online in about 10 minutes, coverage effective after payment
- Unlimited free certificates of insurance (COI), 24/7
- General liability from $19 a month
Watch out: Starting prices are not guaranteed
Simply Business
GL from $20.75/mo
- Compares quotes side by side from 18 carriers
- Carriers include Hiscox, Travelers, CNA, Markel and Liberty
- Certificate of insurance downloadable 24/7
Watch out: Advertised prices are the 10th percentile — most pay more
Insureon
Median GL $45/mo
- Publishes median prices from 100,000+ small-business customers
- Quotes from multiple insurers with licensed agents
- Covers a wide range of industries
Watch out: Medians — your price depends on industry, state and limits
Prices are published averages or starting prices from each insurer or broker, not quotes. Your premium depends on your industry, state, payroll, revenue and claims history. We are not an insurance agency. Verified October 18, 2026. We may earn a commission if you sign up through our links, at no cost to you. How we’re funded.
Frequently asked questions
Does an LLC need workers’ compensation insurance?
If the LLC has employees, almost certainly — most states require it, though thresholds and exemptions differ by state and industry. Check your state’s workers’ compensation agency before you hire.
Do LLC owners need workers’ comp for themselves?
Rules vary by state. Many states let LLC members exclude themselves from coverage, and some let them opt in. Your state’s workers’ compensation agency publishes the rules for members and managers.
How much does workers’ comp cost for an LLC?
The median is $54 a month ($643 a year) among Insureon’s small-business customers, ranging from about $300 to over $5,000 a year. Construction averages $254 a month; consulting $40.
What does workers’ comp cover?
Medical bills and part of lost wages for employees injured on the job, plus employer’s liability if an employee sues over a work injury.
Do I need workers’ comp for contractors?
Generally no for genuine independent contractors, but misclassifying employees as contractors is a common and costly mistake. Some general contractors require their subcontractors to carry it.
Your LLC setup checklist
- Get a free EINFrom the IRS, in minutes online.
- Open a business bank accountKeep LLC money apart from yours to protect the liability shield.
- Sign an operating agreementSettle who owns and decides what before it matters.
- Plan your taxesKnow your tax status and federal due dates.
- Track state deadlinesFree reminders before each filing.
Everything in one list: printable LLC compliance checklist · live deadline calendar.