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Workers Comp Premium Calculator

Calculate workers compensation premium by class code: payroll × rate per $100, experience mod, schedule credit, premium discount and expense constant.

How the workers comp premium calculator works

Workers compensation premium starts with payroll for each class code multiplied by that class’s rate per $100 of payroll. The experience mod, schedule rating and premium discount are then applied, and fixed charges like the expense constant and terrorism surcharge are added.

Formula

Manual premium = Σ (Payroll ÷ 100 × Class rate). Standard premium = Manual × Mod × (1 + Schedule). Total = Standard − Premium discount + Expense constant + Surcharges.

How to use it

  1. List each class code with its estimated annual payroll and rate.
  2. Enter the experience mod and any schedule credit or debit.
  3. Add the premium discount, expense constant and terrorism/catastrophe rate.
  4. Review the effective rate per $100 of payroll.

Worked example

$420,000 of carpentry payroll at $9.12 plus $160,000 of clerical at $0.18 gives $38,592 manual premium. A 0.92 mod and 5% schedule credit bring standard premium to $33,729.

Frequently asked questions

Why does my workers comp premium change at audit?

The policy is priced on estimated payroll. At the end of the term the carrier audits actual payroll by class and charges or returns the difference.

What is the expense constant?

A flat charge per policy that covers the carrier’s fixed cost of issuing and servicing it, regardless of size.

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