Is workers' comp required in Pennsylvania?

Yes, in Pennsylvania, most employers are required to have workers' compensation insurance for their employees, regardless of whether they are full-time, part-time, or seasonal. This requirement applies even if you have just one employee. Failure to comply can result in significant penalties in Pennsylvania.

What are Pennsylvania's commercial auto insurance minimums?

Pennsylvania state law mandates that all commercial auto policies carry a minimum liability limit. For bodily injury, the requirement is $15,000 per person and $30,000 per accident. Additionally, there is a $5,000 minimum for property damage liability per accident.

How much does business insurance cost in Pennsylvania?

The cost of business insurance in Pennsylvania varies based on factors like industry, business size, and coverage needs. However, for a general liability policy, many small businesses in Pennsylvania can expect to pay between $40 and $70 per month. More comprehensive packages that include commercial auto or workers' compensation will have higher premiums.

All Licensed States

PA — Licensed & ActiveUpdated Mar 2026

Commercial Insurance in Pennsylvania.

Philadelphia to Pittsburgh — and everywhere in between.

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Pennsylvania's economy spans healthcare, manufacturing, energy, and professional services. The state has strict workers' compensation requirements and a competitive insurance market that rewards businesses who work with knowledgeable brokers. RISKX helps Pennsylvania businesses find the right coverage at the right price — whether you're in downtown Philadelphia or rural Lancaster County.

Key Industries in Pennsylvania

HealthcareManufacturingEnergy & MiningConstructionFinancial ServicesEducation

Workers' Compensation in Pennsylvania: Required

Pennsylvania requires workers' compensation for virtually all employers. Sole proprietors and general partners can opt out, but all other employees must be covered. The state uses a competitive private market — no state fund monopoly.

Pennsylvania Regulatory Notes

Workers' comp mandatory for nearly all employers — one of the strictest enforcement regimes in the country

Pennsylvania is a choice no-fault auto state — commercial auto policies should be reviewed carefully for PIP elections

Philadelphia has a unique business privilege tax and additional insurance requirements for certain industries

The state's aging infrastructure creates elevated construction liability exposure

Workers' Comp Rate Details — Pennsylvania

Index Rate

$1.14

per $100 payroll

National Rank

#21

of 51 jurisdictions

vs. Median

above national median

Required At

1 employee

Average Cost State

•Required for all employers with 1 or more employees
•Intentional noncompliance is a felony of the third degree
•Pennsylvania Compensation Rating Bureau sets rates

Penalty for non-compliance: Third-degree felony for intentional noncompliance; fines up to $15,000 and up to 7 years imprisonment

Rate data: Oregon DCBS 2024 Premium Rate Ranking Study. Index rates represent the median rate per $100 of payroll across all classification codes.

Auto Insurance Minimums — Pennsylvania

Min. BI Liability

15/30

per person/accident ($K)

Min. Property Damage

$5,000

PIP Required

Yes

No-Fault State

Yes

No-Fault State: Pennsylvania uses a no-fault auto insurance system. Personal Injury Protection (PIP) covers your own injuries regardless of fault. This affects how commercial auto claims are handled and may require additional coverage.