How Is My Workers’ Compensation Premium Calculated?

Your workers’ compensation premium is calculated based on the rate assigned to the business classification code (or combination of codes) that best describes your operations.

These classification codes are determined by the National Council on Compensation Insurance (NCCI). Each class code has a rate per $100 of payroll. That rate is multiplied by your estimated annual payroll for each code to calculate your base premium.

Additional rating factors may also affect your premium, including:

• Your safety practices
• Your claims history
• Your experience modification factor