Price coverage by payroll class, risk, and location. Spot premium drivers and compare savings scenarios. Build confident budgets with clear premium breakdowns always today.
| Class code | Description | Regular | Overtime | OT factor | Rate / $100 |
|---|---|---|---|---|---|
| 8810 | Clerical office employees | $150,000 | $0 | 0.50 | 0.35 |
| 8017 | Retail store employees | $230,000 | $20,000 | 0.50 | 1.25 |
| 5606 | Contractor field employees | $280,000 | $20,000 | 0.50 | 6.50 |
Workers compensation premium begins with payroll assigned to class codes. Each class reflects expected injury frequency and severity. Separate clerical, sales, field, and high‑hazard operations so risk is not blended. Enter regular and overtime payroll, then apply an overtime factor to charge only the straight‑time portion when applicable. Use payroll growth and audit variance to test realistic changes before renewal.
Manual premium is computed per class as adjusted payroll divided by 100, multiplied by the rate per 100. The experience modifier then scales the total based on historical losses versus peers. A value below 1.00 generally indicates stronger performance, while values above 1.00 increase cost. The schedule factor models discretionary credits or debits tied to underwriting review, safety practices, and documentation quality. Claim count and paid losses can be used for stress testing scenarios.
Many programs reduce premium after modifiers. Examples include safety discounts, deductible credits, managed care credits, drug‑free workplace credits, and return‑to‑work credits. Carriers often apply credits sequentially, so the calculator treats them multiplicatively rather than as a simple sum. Contractual endorsements may add cost, such as waiver of subrogation, which you can model as add‑ons for side‑by‑side comparisons across vendors.
Beyond premium, policies may include assessments, catastrophe charges, state surcharges, and premium taxes. Percent charges apply to the premium base for the selected term, while flat charges such as expense constants, administrative fees, and broker fees are shown separately. A minimum premium floor prevents unrealistic outcomes for very small payrolls or short terms and supports budget guardrails.
Cash flow matters as much as the annualized figure. Use payment plan options to model pay‑in‑full discounts, down payments, installment fees, and monthly or quarterly schedules. The charts highlight cost concentration by class and timing by payment. Export CSV for audit trails and PDF for approvals, then validate final pricing using broker and carrier documents during binding.
Use the rate shown on a quote, worksheet, or state filing reference. Rates vary by insurer and may change at renewal. If unsure, start with a recent proposal and adjust for scenario testing.
Many programs charge overtime payroll at the straight-time portion only. The factor estimates that portion, often 0.5, but your rules may differ. Adjust it to match your carrier instructions.
The experience modifier reflects historical losses compared with peers. The schedule factor is a discretionary adjustment based on qualitative underwriting items. Both multiply the manual premium, so small changes can have large impacts.
Credits frequently apply sequentially, which is multiplicative. For example, two 5% credits do not always equal 10% total reduction. This calculator applies each credit as a separate factor for realism.
Annualized premium normalizes the term estimate to a 12-month equivalent. It helps compare quotes with different policy terms. It is not a bill amount unless your policy term is twelve months.
No. This is an educational estimator for budgeting and scenario analysis. Final premium depends on insurer rules, audits, endorsements, and state requirements. Confirm inputs with your broker or carrier documents.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.