Workers' Comp Insurance Cost Calculator

It applies the standard premium formula: payroll divided by 100, multiplied by an industry rate per $100 of payroll, adjusted by a relative state cost index and your experience modifier, plus a typical policy expense constant. Because filed class code rates vary by carrier and state, the result is shown as a range rather than a single number.

No. It is an educational estimate built from published national rate ranges and a relative state cost index. It is not an NCCI class code rate, not a filed carrier rate, and not binding on any insurer. Only a licensed agent or carrier can issue a quote for your business.

Use annual gross payroll for the employees who fall under the class you selected. In most states that includes overtime counted at straight time, bonuses, and commissions. If you have both office staff and field crews, run the calculator once per group and add the results, because each group carries its own rate.

Leave it at 1.00. Small employers below their state's premium eligibility threshold are not experience rated at all and effectively carry a 1.00 mod. If you do have a mod on your declarations page, entering it materially improves the estimate.

The most common reasons are class codes that differ from the broad industry group used here, scheduled rating credits or debits from your carrier, package and premium discounts, dividend plans in some states, minimum premium rules for very small payrolls, and payroll audit adjustments at the end of the policy term.

North Dakota, Ohio, Washington, and Wyoming require coverage through a state fund, so private carrier pricing does not apply and results for those states are directional only. Texas allows employers to opt out of workers' comp entirely, with significant liability consequences.