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Free Workers' Comp Cost Estimator

Last updated: 2026-03-31

Estimate your workers' compensation insurance premium based on your state, industry class code, annual payroll, and experience modification rate (EMR). This calculator uses published NCCI base rates and state-specific adjustments to give you a ballpark premium for budgeting purposes. 100% free, no signup required.

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1.0 = average. <1.0 = fewer claims (lower cost). >1.0 = more claims (higher cost).

Estimated Workers' Comp Premium

$375
Annual Premium
$31.25
Monthly Cost
$0.25
Per $100 Payroll
$125
Per Employee/Year
Base Rate (Office / Clerical)$0.20 per $100
California State Modifier× 1.25
Experience Mod (EMR)× 1.00
Adjusted Rate$0.25 per $100
Annual Payroll ÷ 100 × Rate$1,500 × $0.25 = $375
California: Rates vary significantly by region

How Workers' Comp Premiums Are Calculated

Premium = (Payroll / 100) × Class Code Rate × State Modifier × EMR

Class codes group jobs by risk level. Office work (~$0.20/100) costs far less than roofing (~$15/100). Your Experience Modification Rate (EMR) adjusts your premium based on your claims history — a clean record saves money.

How to Use This Workers' Comp Estimator

Select your state of operation, choose the NCCI class code that best matches your employees' work, enter your total annual payroll for that classification, and input your experience modification rate (EMR). If you don't know your EMR, leave it at 1.00 (the default for new businesses). The estimator calculates your approximate annual premium using the standard formula: (Payroll / $100) × Rate × EMR.

If you have employees in multiple class codes (for example, office staff and field workers), run the calculation separately for each classification and add the results. The total is your estimated annual premium before any carrier discounts or surcharges.

All calculations run in your browser — no data is sent to any server. For official rate filings, visit your state's workers' compensation rating bureau or NCCI.com.

Frequently Asked Questions

How are workers' comp premiums calculated?
Workers' comp premiums use a standard formula: Premium = (Payroll / $100) × Class Code Rate × Experience Modification Rate (EMR). The class code rate reflects the risk level of your industry (e.g., office work is ~$0.20 per $100 of payroll, while roofing can exceed $15.00). The EMR adjusts your rate based on your company's claims history relative to similar businesses. New businesses typically start with an EMR of 1.00.
What are workers' comp class codes?
Class codes (also called classification codes) are four-digit numbers assigned by the National Council on Compensation Insurance (NCCI) or state rating bureaus that categorize businesses by the type of work employees perform. Each code has a base rate reflecting the industry's injury risk. For example, code 8810 (clerical office) has very low rates, while code 5551 (roofing) has very high rates. Employees in different roles may be assigned different class codes.
What is the Experience Modification Rate (EMR)?
The EMR (also called e-mod or experience mod) is a multiplier that adjusts your premium based on your company's claims history compared to the industry average. An EMR of 1.00 means average. Below 1.00 means fewer claims than average (lower premium), above 1.00 means more claims (higher premium). Your EMR is calculated by NCCI or your state's rating bureau using the past three years of claims data, excluding the most recent year. New businesses without claims history start at 1.00.
Which states are monopolistic for workers' comp?
Four states operate monopolistic (state-fund only) workers' comp systems: North Dakota, Ohio, Washington, and Wyoming. In these states, you must purchase workers' comp insurance from the state fund rather than private insurers. Rates and rules differ from NCCI states. The remaining states allow private insurance, though some (like California and New York) have their own rating bureaus rather than using NCCI.
Is workers' comp insurance required for all businesses?
Nearly every state requires workers' comp for businesses with employees, but the specifics vary. Texas and South Dakota do not require most private employers to carry workers' comp (though it's strongly recommended). Some states exempt very small employers (e.g., fewer than 3–5 employees), sole proprietors, or certain agricultural workers. Check your state's requirements — penalties for non-compliance include fines, criminal charges, and personal liability for all injury costs.
How can I reduce my workers' comp costs?
Five proven strategies: (1) Implement a formal workplace safety program to prevent injuries. (2) Create a return-to-work program offering light-duty positions to injured workers. (3) Review your class code assignments annually — misclassification is common and costly. (4) Manage claims aggressively by reporting injuries immediately and staying involved in the process. (5) Consider a higher deductible or pay-as-you-go plan. Over time, fewer claims will lower your EMR and your premium.
What does workers' comp insurance cover?
Workers' comp covers employees who are injured or become ill due to their job. Benefits typically include medical expenses (doctor visits, surgery, rehabilitation), wage replacement (usually 66⅔% of average weekly wages), disability benefits (temporary or permanent), vocational rehabilitation, and death benefits for dependents. It does not cover independent contractors, intentional self-injury, or injuries while violating company policy or under the influence.
How accurate is this estimator?
This tool provides a ballpark estimate based on published NCCI base rates and state averages. Your actual premium may differ due to carrier-specific rating plans, schedule credits or debits, premium discounts for size, state-specific surcharges, and your exact EMR. Use this estimate for budgeting, then get formal quotes from licensed insurance agents or carriers. Your data never leaves your browser.

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