Workers' Compensation Premium Calculator
Estimate workers' compensation insurance premiums per employee and total annual cost based on your industry code and payroll.
Frequently asked questions
How is workers' comp calculated?
Premiums are based on your industry class code (each has a rate per $100 of payroll), your claims history (Experience Modification Rate or EMR — 1.0 is average, below 1.0 is good, above is bad), and your state. Your payroll provider usually handles reporting and payment monthly.
What's an Experience Modification Rate (EMR)?
Your EMR is a multiplier based on your company's claims history compared to industry average over the past 3 years. It starts at 1.0 for new companies. If you have fewer claims than average, EMR drops below 1.0 (saving you money). More claims pushes it above 1.0 (costing more). A good safety program keeps EMR low.
Can I skip workers' comp?
No — it's required by law for employers with employees in every state except Texas. Even in Texas, certain industries (construction, maritime) require it. The penalties for not having workers' comp are severe: fines, back payments, stop-work orders, and personal liability for you and your corporate officers.
About the Workers' Compensation Premium
Estimate workers' compensation insurance premiums per employee and total annual cost based on your industry code and payroll. The tool runs entirely in your browser, so nothing you enter is uploaded or stored.
How to use the Workers' Compensation Premium
- Industry (class code) — enter your industry.
- Annual payroll per employee — enter your annual payroll per employee.
- Number of employees — enter your number of employees.
- State — enter your state.
Last updated — insurance rates and factors change over time, so always confirm with the current source.
Estimates for general information only, not insurance advice — see our disclaimer.