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Commercial Premium Calculator

Estimate a commercial insurance premium from exposure, rate, schedule rating, experience mod, minimum premium, fees and taxes.

How the commercial premium calculator works

Most commercial lines are priced the same way: an exposure base (sales, payroll, units) multiplied by a rate, then adjusted by schedule rating and the experience modification, subject to a minimum premium. This calculator walks through each step so you can see exactly where the number comes from.

Formula

Premium = max( Exposure ÷ Unit × Rate × (1 + Schedule mod) × Experience mod , Minimum premium ). Total cost = Premium + Fees + Taxes.

How to use it

  1. Enter the exposure and how the rate is quoted (per $100, per $1,000 or per unit).
  2. Enter the base rate from the carrier or rating manual.
  3. Add schedule rating as a percentage (negative for a credit) and the experience mod.
  4. Add the minimum premium, fees and any premium tax to see the total cost.

Worked example

$1,250,000 of sales at a $4.85 rate per $1,000 gives a $6,062.50 base premium. A 10% schedule credit brings it to $5,456.25; with a 1.00 mod and $150 of fees the total is $5,606.25.

Frequently asked questions

What is the difference between schedule rating and experience rating?

Experience rating uses the insured’s own loss history through a formula. Schedule rating is the underwriter’s judgment about risk characteristics — housekeeping, management, safety programs — applied as a debit or credit within filed limits.

Why is my premium higher than exposure × rate?

Usually because a minimum premium applies, or because fees, surcharges and taxes are added on top of the rated premium.

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