Workers’ Comp Insurance Premium Calculator (2025)

Workers' compensation cost equals your payroll divided by 100. Then multiply by your industry rate. The basic formula is: (Annual Employee Payroll/100) x Workers Comp Insurance Rate = Estimated Cost. Most businesses pay between $0.75 to $2.74 per $100 of payroll.

Workers' comp rates vary by state and job type. Office workers pay about $0.75 per $100 of payroll. Construction workers pay $3.50 to $8.00 per $100. Your exact rate depends on your industry classification code and claims history.

Small businesses typically pay $500 to $3,000 per year for workers' comp. Your cost is calculated per $100 of payroll, so larger payrolls mean higher premiums. Low-risk businesses like offices pay less than high-risk jobs like construction.

Four main factors affect your premium cost. Your industry classification code sets the base rate. Your total annual payroll determines the premium size. Your claims history creates an experience modifier. Your business location affects state-specific rates.

Add up your wages from the past year. Divide by 52 weeks to get your average weekly wage. If you earned $50,000 annually, your average weekly wage would be about $962. This determines your disability benefit amount.

Most states pay 66.7% of your average weekly wage. Some states pay up to 80% of your wages. Benefits are capped at maximum weekly amounts that vary by state. You cannot receive more than the state maximum limit.

Settlement calculations can take 3 to 12 months. Complex cases take longer to resolve completely. Settlements include lost wages, medical expenses, future medical costs, and disability ratings. Your lawyer will help speed up the process.

Online calculators provide good estimates for planning purposes. They use industry rates and basic formulas. Calculators consider factors like employee count, payroll, and claims history. Contact insurers for exact quotes and final pricing.

Classification codes group similar jobs by risk level. Higher risk jobs pay higher rates per payroll. Office workers use code 8810 with low rates. Construction workers use codes 5645-5651 with high rates. Wrong codes can cost you thousands extra.

EMR compares your claims to similar businesses. An EMR of 1.0 means average claims experience. EMR below 1.0 reduces your premium cost. EMR above 1.0 increases your premium cost. Good safety records lower your EMR over time.

TTD benefits equal 66.7% of your average weekly wage. You receive this while unable to work. Benefits start after a waiting period of 3-7 days. Most states cap TTD at maximum weekly limits. Benefits continue until you return to work.

Temporary disability pays while you recover from injury. Permanent disability pays for lasting impairments after healing. Permanent disability ratings equal specific dollar amounts based on injury date and wages. Permanent benefits may last for life.

Multi-state businesses use rates from each work location. Each state has different rate structures. You need separate coverage for each state. Some insurers offer master policies across states. Calculate costs separately for each location.

Yes, you can lower costs through safety programs. Implement workplace safety training and equipment. Maintain accurate payroll and classification records. Understanding calculation factors helps identify cost reduction opportunities. Work with agents to find discounts.

States update rates annually or every few years. Industry advisory organizations recommend rate changes. Your experience modifier updates every three years. New claims can affect your rates. Review your policy annually for rate changes.