Workers' Compensation Cost Calculator
Estimate your annual workers' compensation premium based on state, industry class code, and annual payroll. Uses NCCI-derived base rates and state loss cost multipliers.
Your Business
Total gross wages paid to all employees in the class.
1.0 = industry average. Below 1.0 = better safety record. Above 1.0 = worse.
California Coverage Requirements
- Coverage required starting: First employee (all employers).
- Insurance market: Competitive private market — buy from any licensed carrier or state fund.
- Owners/partners: Coverage required for sole proprietors and partners.
- State regulator: Official site ↗
How the Calculation Works
The workers' comp premium formula is:
Premium = (Payroll / $100) × Class Base Rate × State Multiplier × Experience Mod
Class Base Rate
NCCI (National Council on Compensation Insurance) publishes ~700 industry class codes with a base rate per $100 of payroll. Some states have their own bureaus (CA, NY, PA, TX, DE, MI, NJ) but the concept is the same.
State Multiplier (Loss Cost Multiplier)
Each state's Department of Insurance publishes an annual multiplier reflecting local claim costs, medical inflation, and legal environment. NY (1.45x) and CA (1.65x) are among the highest; UT (0.65x) and IN (0.65x) are among the lowest.
Experience Mod
After 3+ years in business, insurers assign a modifier based on your claim history. Better than average = below 1.0 (discount). Worse = above 1.0 (surcharge). New businesses default to 1.0.
Estimate only — get a real quote before buying.
Actual premiums depend on your specific NCCI class code (there are ~700; we show rough industry buckets), state-specific rate filings, assigned-risk pool status, carrier-specific pricing, and payroll audits. Get a quote from an independent agent or online (NEXT Insurance, Pie, Hiscox, The Hartford). Rates typically vary 30% between carriers for the same risk.