Quick answer
Pennsylvania requires workers' compensation for employers with any employees, including part-time workers. General liability isn't required by state law for most businesses, but clients, landlords and many local permits expect it. Nationally, general liability has a median cost of $45 a month and a business owner's policy $83 a month (Insureon, 2026).
Key facts
- Workers' comp
- Required with any employees
- General liability
- Not required by state law for most businesses; required by many contracts
- National median GL cost
- $45/month (Insureon, 2026)
- Insurance regulator
- Pennsylvania Insurance Department
- Workers' comp authority
- PA Bureau of Workers' Compensation
On this page 9 sections
Workers' comp in Pennsylvania: Required once you have any employees. Compare all states.
Official sources: Pennsylvania Insurance Department · Pennsylvania Bureau of Workers' Compensation
Coverage a Pennsylvania needs
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Workers' compensation Essential
Employee medical bills and lost wages after a work injury or illness, plus employer's liability.
Required once you hire any employee in Pennsylvania.
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General liability Essential
Third-party bodily injury, third-party property damage, and advertising injury.
Clients, landlords and municipalities commonly ask for proof of coverage.
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Business owner's policy Recommended
General liability plus commercial property, usually with business interruption, in one package.
A cost-effective way to cover a shop, office or equipment along with liability.
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Commercial auto Recommended
Vehicles owned by your business, including liability and physical damage.
Needed for vehicles owned by the business or used heavily for work.
Is business insurance required in Pennsylvania?
In Pennsylvania, the main insurance a business must carry by law is workers' compensation once it has employees. Beyond that, requirements usually come from:
- Clients and general contractors, who often require general liability with set limits and additional insured status.
- Landlords, who typically require general liability in a commercial lease.
- Municipalities and licensing programs, which may ask for proof of insurance before issuing a permit or registration. Requirements differ from place to place, so check with the city or township where you'll work.
- Vehicle registration, which requires auto insurance for every registered vehicle; business vehicles belong on a commercial policy.
General liability isn't required by state law for most businesses, but it's often a practical requirement for winning work.
Workers' compensation in Pennsylvania
Pennsylvania requires workers' compensation for employers with any employees, including part-time and seasonal workers. Sole proprietors and partners without employees generally aren't required to cover themselves.
Pennsylvania is not a monopolistic state. You can buy coverage from private insurers, and the State Workers' Insurance Fund (SWIF) also offers coverage, which can help businesses that have trouble finding a policy elsewhere.
The Pennsylvania Bureau of Workers' Compensation administers the system. Employers who fail to carry required coverage can face serious penalties, so confirm your obligations before your first hire.
What else Pennsylvania business owners should know
- Construction contracts. General contractors and property owners commonly require subcontractors to show general liability and workers' comp certificates, and to name them as additional insureds.
- Local requirements vary. Pennsylvania has many municipalities, and some have their own registration or permit rules that include proof of insurance. A business working in several towns may see different requirements in each.
- Winter weather. Slip-and-fall claims are a common general liability risk for businesses with customer-facing locations, especially in snowy months.
- Vehicles. If employees drive their own cars for work errands, consider hired and non-owned auto (HNOA) coverage.
How much does business insurance cost in Pennsylvania?
We don't publish a Pennsylvania-specific median, because reliable state-level price data isn't publicly available. What we can share are national medians. According to Insureon's 2026 data from 100,000 small-business customers (most with 1–4 employees):
| Policy | National median |
|---|---|
| General liability | $45/month ($538/year) |
| Business owner's policy (BOP) | $83/month ($990/year) |
| Professional liability / E&O | $88/month |
| Workers' compensation | $54/month |
| Commercial umbrella | $86/month |
| Cyber insurance | $129/month |
Prices in Pennsylvania can be higher or lower than these figures. Your county, local claim trends and your type of work all affect Pennsylvania rates. Your own quote depends on your industry, payroll, revenue, number of employees, claims history, the limits and deductible you choose, and where in the state you operate. Riskier work costs more: Insureon's construction customers, for example, pay a median of $82 a month for general liability and $254 a month for workers' comp, compared with $29 and $40 for consultants. Use our business insurance cost calculator for a rough national estimate, then get real quotes.
How to verify requirements and coverage in Pennsylvania
- Check workers' comp rules with the state. The Pennsylvania Bureau of Workers' Compensation is the authority on who must carry coverage, exemptions and penalties. Our workers' comp requirements by state table is a starting point, not a substitute.
- Check your license. If your trade is licensed in Pennsylvania, the licensing board can tell you whether proof of liability insurance, a bond or workers' comp is part of getting or renewing your license.
- Read your contracts and lease. Clients, general contractors, venues and landlords set their own minimums, often $1 million per occurrence and $2 million aggregate for general liability, and may ask to be named as an additional insured.
- Confirm the insurer is licensed. The Pennsylvania Insurance Department regulates insurance companies and agents in Pennsylvania. You can use its website to check that an insurer or agent is licensed and to file a complaint.
- Keep proof handy. Ask for a certificate of insurance (COI) as soon as your policy starts so you can send it to clients quickly.
How to get Pennsylvania Business Insurance Requirements
- Check whether you have employees
Any employee, full- or part-time, triggers Pennsylvania's workers' comp requirement.
- Check local and license rules
Some municipalities and licensing programs ask for proof of insurance; check where you will work.
- Choose limits
Match general liability limits to your contracts, commonly $1 million per occurrence and $2 million aggregate.
- Compare quotes
Compare quotes from licensed insurers, including workers' comp options.
- Keep certificates ready
Request certificates of insurance for clients, landlords and permit offices.
Frequently asked questions
Is general liability insurance required in PA?
Pennsylvania doesn't require general liability for most businesses by state law. However, clients, commercial landlords, general contractors and some municipalities require proof of coverage before you can work or get a permit. Most small businesses carry $1 million per occurrence and $2 million aggregate.
Do I need workers' comp in Pennsylvania with one employee?
Yes. Pennsylvania requires workers' compensation for employers with any employees, including part-time and seasonal workers. Sole proprietors and partners with no employees usually don't need to cover themselves. Confirm the details with the Pennsylvania Bureau of Workers' Compensation.
What is SWIF in Pennsylvania?
SWIF is the State Workers' Insurance Fund, a state-run option for workers' compensation coverage in Pennsylvania. It competes with private insurers, so Pennsylvania is not a monopolistic state. It can be useful for businesses that struggle to get coverage elsewhere.
How much does business insurance cost in Pennsylvania?
We don't publish a Pennsylvania-specific median. Nationally, Insureon's 2026 data shows a median of $45 a month for general liability, $83 for a business owner's policy and $54 for workers' comp. Your premium depends on your industry, payroll, location and claims history.
Do Pennsylvania contractors need insurance?
Contractors with employees must carry workers' comp, and general contractors and property owners nearly always require general liability certificates from subcontractors. Some municipalities also ask for proof of insurance as part of registration or permits, so check local rules where you work.
Who regulates insurance in Pennsylvania?
The Pennsylvania Insurance Department regulates insurers and agents and handles consumer complaints. The Bureau of Workers' Compensation oversees workers' comp compliance. Use these agencies to check rules and confirm an insurer is licensed in Pennsylvania.
Sources
- Insureon — Small business insurance costs (2026)
- MoneyGeek — Workers' comp requirements by state (2026)
- Pennsylvania Insurance Department
- U.S. Small Business Administration — Get business insurance
We cite official agencies and published industry data. See our editorial policy. Found an error? Tell us.
This guide is general information, not insurance, legal or financial advice. Coverage, exclusions and prices vary by insurer and state. Always read the policy and ask a licensed agent before you buy.