Professional services
Insurance Premium Calculator
Works premium from the rating basis, where the exposure measure explains most of the number.
Result
An estimating tool, not insurance advice and not a quote. Underwriting sets real premiums on claims history, exact operations and contract requirements. What cover you need is a question for a licensed broker. Comparing quotes needs the same exposure base, the same limits and the same deductible, or the cheaper premium is simply buying less cover. Read what is excluded before comparing what is charged.
Get a Free Business AuditHow the calculation works
The rating basis, whether revenue, payroll, insured value or units, times the rate, adjusted for limits, deductible and any experience factor. Understanding the basis is what makes a premium predictable: a line rated on payroll rises with hiring, one rated on revenue rises with growth, and neither is a pricing decision by the insurer.
What moves the number
- The exposure basis the line is rated on.
- Classification, which sets the rate.
- Limits and deductible chosen.
- Experience factors from claims history.
Where this one goes wrong
Premium rising at renewal with no change in cover is usually the exposure basis moving rather than a rate increase, and distinguishing the two matters because they call for different responses: growth-driven increases are a cost of growth, while genuine rate increases are worth shopping. Ask the broker to show the exposure figures used alongside the rate. Audits are the other mechanism, since premiums estimated on projected payroll or revenue are adjusted to actual afterwards.
Before you quote
- Separate exposure growth from genuine rate increases.
- Check the exposure figures the insurer used.
- Budget for audit adjustments where estimates were used.
Questions
About this calculator
Why did my premium rise with no change in cover?
Usually the exposure basis moved rather than the rate. Lines rated on payroll, revenue or insured value rise automatically as those grow, which is a cost of growth rather than a rate increase and calls for a different response.
What is a premium audit?
Where a premium is estimated on projected payroll or revenue, the insurer adjusts it to actual after the period. An underestimate produces an additional bill, which is why estimating honestly up front avoids an unwelcome adjustment later.
How do I tell a rate increase from exposure growth?
Ask the broker to show the exposure figures used alongside the rate for both years. If the rate is unchanged and the exposure grew, the increase is growth; if the rate moved, that is worth shopping against other markets.
The formula
premium = exposure / rate basis x rate, adjusted by the modifier, plus fees, subject to a minimum
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How to use this calculator
- Exposure base ($). Revenue, payroll, property value, whatever the policy rates on.
- Rate. Enter your own figure; the page starts at 6.
- Rate is per. Enter your own figure; the page starts at $1,000 of exposure.
- Experience or schedule modifier (%). Positive loads the premium, negative credits it.
- Policy fees and taxes ($). Enter your own figure; the page starts at $180.
- Minimum premium ($). Enter your own figure; the page starts at $500.
The result updates as you type, so you can try a figure, see what it does to total premium, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Exposure base | $500,000 |
| Rate | 6 |
| Rate is per | $1,000 of exposure |
| Experience or schedule modifier | 0% |
| Policy fees and taxes | $180 |
| Minimum premium | $500 |
What comes out
| Result | Value |
|---|---|
| Total premium main result | $3,180 |
| Base premium | $3,000 |
| Effect of the modifier | $0 |
| Per month | $265.00 |
| Effective rate on exposure | 0.64% |
Premium of $3,180, $265.00 a month, an effective 0.64% of exposure. Comparing quotes on effective rate rather than headline premium is the only way to see which is actually cheaper.
How sensitive the answer is
Holding everything else steady and changing only exposure base, this is what happens to total premium. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Exposure base ($) | Total premium |
|---|---|
| $250,000 | $1,680 |
| $375,000 | $2,430 |
| $500,000 example above | $3,180 |
| $750,000 | $4,680 |
| $1,000,000 | $6,180 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Exposure base ($)
- Revenue, payroll, property value, whatever the policy rates on.
- Rate
- A number, between 0 and 200, starting at 6.
- Rate is per
- Choose from $100 of exposure, $1,000 of exposure, Unit, flat rate.
- Experience or schedule modifier (%)
- Positive loads the premium, negative credits it.
- Policy fees and taxes ($)
- A money amount, starting at $180.
- Minimum premium ($)
- A money amount, starting at $500.
What the results tell you
| Result | What it is |
|---|---|
| Total premium | The headline result. A money figure. |
| Base premium | A money figure. |
| Effect of the modifier | A money figure. |
| Per month | A money figure. |
| Effective rate on exposure | A percentage. |
Keep going
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