Estimate your workers' compensation insurance cost based on your industry, total payroll, and claims history.
Estimate your annual workers' compensation premium. No personal information required.
Important: This calculator provides an educational estimate only. Actual workers' compensation rates are set by state regulation and specific insurer underwriting, and vary significantly by exact job classification.
How
This tool estimates your workers' compensation premium based on your industry's risk classification, total annual payroll, state, and claims history, using typical rate patterns per $100 of payroll.
Workers' compensation is priced primarily around industry classification codes, which reflect the inherent injury risk of specific job duties, combined with your total payroll and your business's specific claims experience over time, called your experience modifier.
The calculator does not require personal information and does not generate a binding quote.
Factors
This is the primary factor. Office and low physical risk jobs carry dramatically lower base rates than construction, manufacturing, or transportation roles, since the underlying injury risk differs substantially.
Workers' compensation rates and regulatory structures vary significantly by state, since it is a state-regulated line of insurance rather than governed by a single national standard.
Workers' compensation premium is calculated directly as a rate per $100 of payroll, meaning your total payroll size directly determines your total premium at a given rate.
Even within one business, employees performing different duties can fall under different classification codes, meaning a business with mixed job types often has a blended rate reflecting the different risk levels represented.
A business with a clean claims history typically qualifies for a favorable experience modifier that reduces the base rate, while a history of claims raises future premiums, sometimes substantially, similar to how a driving record affects auto insurance.
Why
Workers' compensation is state-regulated and priced with insurer-specific underwriting adjustments layered on top of standard classification rates. This tool provides a directional estimate to help you budget before requesting a specific quote.
When
Using this tool before speaking with a commercial insurance broker helps you enter that conversation with a realistic cost expectation already in mind, based on your actual industry and payroll rather than a general assumption.
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The table below illustrates typical workers' compensation rates per $100 of payroll across broad industry risk classes.
| Industry Classification | Typical Rate per $100 Payroll | Relative Risk Level |
|---|---|---|
| Office / Low Risk | $0.20–$0.60 | Lowest |
| Retail / Service | $0.80–$2.00 | Low to Moderate |
| Manufacturing | $2.50–$6.00 | Moderate to High |
| Transportation | $3.50–$8.00 | High |
| Construction / Trades | $5.00–$15.00+ | Highest |
Note: These figures illustrate typical relative patterns across industries. Actual rates depend on your specific state, exact job classification codes, and claims history.
In most states, yes, once you hire your first employee, with some states allowing exceptions for very small businesses. Requirements and thresholds vary by state, so confirming your specific state’s rules directly is worth doing.
Rates reflect the actual injury risk associated with specific job duties. A construction job involves meaningfully higher physical risk than an office job, and workers’ compensation pricing is built specifically around that difference.
An experience modifier is a factor applied to your base rate reflecting your business’s actual claims history compared to what’s typical for your industry. A modifier below 1.0 reflects a better than average claims history and lowers your premium, while above 1.0 raises it.
Yes. If your employees perform meaningfully different job duties, such as an office administrator and a warehouse worker at the same company, each role may fall under a different classification code with its own rate.
No. Rates, regulatory structures, and even how workers’ compensation is administered vary significantly by state, since it is regulated at the state level rather than nationally.
Maintaining a strong safety record to keep your experience modifier favorable, accurately classifying employee job duties rather than defaulting to a higher risk code, and implementing workplace safety programs are all practical ways to manage cost over time.
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