What is a Net Rate?

A “Net Rate” is used to calculate the premium charge.

The “Net Rate” method takes into consideration all rating factors, including the expense constant, shownon the Policy Information Page and produces a Net Rate per $100 of your payroll which allows a more accurate calculation of estimated premium per pay period.

This rate will be used at initial policy issuance but will change if changes are made to the policy estimates. Furthermore, the estimated policy premium used to determine the Net Rate used at each payroll reporting period will be reconciled at the end of the policy period.