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Workers Compensation Insurance Calculator

Workers compensation premium from payroll, class rate and experience modifier.

Your numbers

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Prior claims increase the premium, sometimes sharply.
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Result

Estimated annual premium $20,160
Per month $1,680.00
Before loadings $20,160
Credit for the deductible $0
Effective rate on exposure 4.20%
About $20,160 a year on $480,000 of payroll, an effective 4.20%. The experience modifier of 1 is the part you control, and it follows you for years.

An estimating tool, not insurance advice and not a quote. Actual premiums are set by underwriting on factors no calculator sees: claims history, credit and loss data, exact location, construction, contract requirements and the insurer's own appetite. What cover you need is a question for a licensed broker who has looked at your situation. Rates are set by class code, and codes vary enormously: clerical work is a fraction of a percent of payroll while roofing and tree work are among the highest rates there are. The experience modifier compares your claims against others in the same class and applies for several years, so a single bad year raises premiums for a long time. Misclassifying employees to obtain a lower rate is fraud.

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Questions

About this calculator

What is an experience modifier?

A multiplier comparing your claims history with the average for your class. Below 1.0 means fewer or smaller claims than expected and lowers the premium; above 1.0 raises it, and it persists for several policy years.

Why does classification matter so much?

Because the rate difference between classes is often ten to one. Employees must be classified by the work they actually do, and deliberate misclassification to reduce premium is insurance fraud.

The formula

premium = payroll / 100 x class rate x experience modifier

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