Workers' Comp Premium Calculator
Estimate your workers' compensation insurance premium. By state, industry, and payroll with experience modification rate.
1.00 = average (default for new businesses)
For per-employee cost
Enter your business details to estimate the premium
| Code | Classification | Rate / $100 | Risk Level |
|---|---|---|---|
| 8820 | Legal/Accounting | $0.22 | Low |
| 8810 | Office/Clerical | $0.25 | Low |
| 8868 | College/University | $0.35 | Low |
| 8742 | Sales (Outside) | $0.50 | Low |
| 8601 | Engineering/Architecture | $0.55 | Low |
| 7600 | Telecom/IT Services | $0.85 | Low |
| 8833 | Healthcare (Physicians) | $0.90 | Low |
| 8017 | Retail Store | $1.85 | Medium |
| 7380 | Restaurant/Food Service | $2.25 | Medium |
| 8006 | Grocery Store | $2.50 | Medium |
| 3632 | Manufacturing (Light) | $3.20 | Medium |
| 8832 | Healthcare (Nursing) | $3.50 | Medium |
| 9015 | Building Operations | $3.80 | Medium |
| 8393 | Auto Repair | $4.00 | High |
| 5183 | Plumbing | $4.20 | High |
| 5190 | Electrical Wiring | $4.80 | High |
| 8829 | Nursing Home | $5.20 | High |
| 9014 | Janitorial/Cleaning | $5.50 | High |
| 0042 | Landscaping | $6.00 | High |
| 3076 | Manufacturing (Heavy) | $6.80 | High |
| 8227 | Construction (Concrete) | $7.50 | High |
| 7219 | Trucking | $8.50 | Very High |
| 5403 | Carpentry | $9.50 | Very High |
| 5551 | Roofing | $18.00 | Very High |
Workers' Comp Insurance Guide
What is workers' compensation insurance?
Workers' compensation (workers' comp) is a form of insurance that provides wage replacement and medical benefits to employees who are injured or become ill in the course of employment. In exchange, the employee relinquishes the right to sue the employer for negligence (the "exclusive remedy" doctrine). The system is no-fault, meaning benefits are paid regardless of who caused the injury. Workers' comp covers medical expenses, temporary and permanent disability benefits, vocational rehabilitation, and death benefits for dependents.
How classification codes determine your rate
Every business is assigned one or more workers' comp classification codes based on the type of work performed. The National Council on Compensation Insurance (NCCI) maintains codes for 38 states. The remaining states (including California, New York, and Pennsylvania) use their own classification systems. Each code has an assigned rate per $100 of payroll that reflects the historical loss experience for that type of work. Office workers (code 8810) have very low rates ($0.20-$0.50) because injuries are rare, while roofers (code 5551) have rates of $15-$25+ because the work is inherently dangerous.
The experience modification rate (EMR)
Your EMR compares your company's actual workers' comp claims history to the expected claims for businesses of your size and industry. An EMR of 1.0 is average. If your EMR is 0.85, your premium is 15% below average (fewer claims). If it is 1.25, your premium is 25% above average (more claims). The EMR is calculated using three years of claims data, excluding the most recent policy year. New businesses start with an EMR of 1.0. It typically takes 3-5 years to develop enough data for a modified EMR. Even a single large claim can increase your EMR for multiple years.
State requirements and monopolistic states
Workers' comp requirements vary by state. Most states require coverage from the first employee. Some have thresholds (e.g., 5+ employees in some states). Texas is the only major state where workers' comp is entirely optional for most private employers (though construction and government contractors must carry it). Four states operate monopolistic funds: Ohio, North Dakota, Washington, and Wyoming. In these states, employers must purchase coverage from the state rather than private insurers.
The audit process
Workers' comp premiums are based on estimated payroll at the start of the policy year. At the end of the year (or when the policy expires), the insurer conducts an audit to compare actual payroll to the estimate. If actual payroll was higher, you owe additional premium. If lower, you receive a refund. Proper record-keeping is essential: maintain payroll records by classification code, document overtime separately (overtime premium pay is excluded from the base in most states), and keep records of subcontractor certificates of insurance.
Workers' Comp FAQ
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