Workers Compensation Insurance Calculator
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About Workers Compensation Insurance
Workers compensation insurance covers medical expenses and lost wages for employees injured on the job. It is legally required in almost every state for businesses with employees. Premiums are calculated per $100 of payroll and vary dramatically by industry — office workers have very low rates (around $0.35 per $100), while roofing contractors can pay over $18 per $100 payroll due to the elevated injury risk. State-level regulators set minimum rates, and experience modifiers (EMR) can raise or lower your premium based on your claims history. Maintaining a safe workplace and low claim history is the best way to keep your workers comp costs down over time.
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Frequently Asked Questions
Is workers comp required for all businesses?
Most states require workers comp for any business with one or more employees. Some states exempt very small businesses or sole proprietors, but requirements vary. Texas is the only state where private employers can opt out.
How are workers comp rates calculated?
Rates are set per $100 of payroll and vary by job class code and state. Your experience modification rate (EMR) adjusts the base rate up or down depending on your claims history relative to your industry average.
What does workers comp cover?
Workers comp covers medical treatment, rehabilitation costs, and a portion of lost wages for employees injured at work. It also includes employer's liability protection if an employee sues over a workplace injury.
What is an experience modification rate (EMR)?
The EMR (or mod) compares your claims history to the industry average. A mod of 1.0 is average; below 1.0 means fewer claims than average (discount); above 1.0 means more claims (surcharge).
How can I lower my workers comp premiums?
Implement safety training programs, maintain a return-to-work program, classify employees correctly, and audit your payroll regularly. Fewer claims over time will lower your EMR and reduce premiums.
Results are estimates only. Actual premiums depend on underwriting factors specific to your business. Consult a licensed insurance professional for an accurate quote.