Save with pay-as-you-go workers comp insurance

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Simple and affordable

No hidden fees, no guesswork, no upfront deposit.

Dependable coverage

Backed by A-rated insurance companies. Get the best rate or bring your existing insurance agent.

How it works

Pay as you go

Make automatic monthly payments based on your actual payroll.

Smart savings

Pay only for the coverage you need, calculated in real-time.

Instant proof of insurance

Generate your own certificate of insurance in seconds from your phone.

People love us

Richard Gil

A Touch of Stone

San Jose, California

This year we are saving $12K on workers comp, and with pay-as-you-go, I don’t have to worry about an audit bill.

Florentino Gonzalez

Owner, All Star Framing

Hollister, California

Hourly saved us $45k on workers comp in 2019. The technology is fantastic - it connects the dots between hours, payroll and workers comp. I love it.

Shawn Gordon

S-G-Electric, Inc.

San Jose, California

We are saving more than $7K a year and our cash flow is more predictable with Hourly’s pay-as-you-go feature.

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Hourly app employee's view of worked hours

Got questions?

We have answers

How much is Workers Compensation Insurance?

The cost of workers’ compensation insurance depends on a few factors. In general, companies with more employees and riskier work environments will pay more for workers’ comp.

The cost of workers’ compensation depends on:

  • The state or states where your team works
  • Your payroll amount
  • Your industry
  • The type of tasks done by your team
  • Your claims history

Hourly can help small businesses reduce costs by letting your team switch class codes on the fly to keep up with the type of work they’re doing.

What Is Workers Compensation Insurance?

Workers Compensation insurance gives medical and wage benefits to people who are injured or become ill at work. It can cover medical bills, lost income, and even death benefits.

Most states require insurance for businesses with employees, however, each state has its own guidelines for coverage and benefits.

When do I need to buy workers’ compensation insurance?

In most states, you need to have a policy in place as soon as you hire a new employee. Coverage typically begins after you buy the policy, and only applies for events that happen after the policy start date.

What happens if I don’t have workers’ compensation insurance?

Workers’ compensation is required in most states for businesses with employees. Business owners who don’t buy a policy when it’s required can face penalties and jail time.

Fines and jail time

Not carrying workers’ comp coverage in California is a criminal offense punishable by up to $100,000 in fines or imprisonment for up to 18 months.

Other states have similar penalties.

Injured workers could sue

Beyond penalties and jail time, an injured employee could sue to recoup their medical costs and lost wages.

Who is exempt from workers comp

Some businesses aren’t required to have workers’ compensation insurance.

Here are some situations that might exempt a business owner:

  • The owner is a sole proprietor
  • The business is based in Texas
  • The owner only employs their immediate family
  • The owner doesn’t employ enough people to hit a minimum employee threshold

Additionally, these people generally don’t need a policy:

  • Independent contractors
  • Partners
  • Members of an LLC
  • Corporate officers who own a certain amount of stock

Get a free quote today to see which exemptions apply to you.

How is workers comp calculated?

Workers’ comp insurance premiums are calculated based on the type of work your employee does — the class code, and the number of prior claims your business has had — your experience modifier or X-mod.

Your premium can be broken down into a simple formula like this:

Payroll (per $100) X Class Code Rate X Experience Modifier + State Taxes & Fees

There may be other factors that go into your premium depending on your carrier and state. Get in touch with your agent to find out more.

How do I buy workers’ comp insurance?

Buying a workers’ comp policy is simple and straightforward.

Most states have a state fund that provides a simple coverage option for everyone. Private insurance carriers also offer coverage, though they can be pickier about who they’ll cover.

Hourly offers an easy way to sign up for workers’ comp insurance through our top-rated payroll platform. We shop around for the best rate, so get a free quote and see what you could be saving.