Workers Compensation Insurance Cost Calculator
Workers comp insurance cost is calculated by NCCI class code (job risk classification), total payroll per $100, and experience modifier. Office work (8810) costs $0.20/$100 payroll; roofing (5551) costs $40+/$100 payroll — 200x difference.
How Workers Comp Premium Is Calculated
Three factors: (1) Class code rate by NCCI — assigned by job duties, ranges $0.10-$50+ per $100 payroll. (2) Total annual payroll — gross wages including overtime + bonuses. (3) Experience modifier (E-mod) — actual claim cost vs expected, 3-year rolling window. Manual premium = payroll/100 × class rate. Modified premium = manual × E-mod.
Class Code Examples And Rates
Clerical (8810): $0.20/$100. Outside sales (8742): $0.30. College/school (8868): $0.95. Restaurant (9082): $2.10. Carpentry (5645): $14.50. Electrical (5403): $5.50. Roofing (5551): $40+. Trucking (8829): $8.50. Home health care (8835): $3.50. Mixing classes — typical for multi-trade contractors — uses payroll-weighted blend.
How To Lower Workers Comp Cost
Three highest-impact moves: (1) Audit class codes — many companies are mis-coded into higher-cost classes. (2) Reduce claim frequency — even small claims hurt E-mod for 3 years. (3) Implement return-to-work programs — bring injured employees back in light duty to avoid lost-time claim category. Each E-mod point reduction saves 1% on premium.
Source: NCCI Class Code Manual 2025, State Workers Comp Rate Bureaus. Last updated: May 2026.