Workers' comp cost calculator

How the estimate works

Insurers price workers' comp with one formula almost everywhere: premium equals payroll divided by 100, times the class rate, times the experience modifier.

Without your own class rate, the calculator uses your state's index rate from the 2024 Oregon workers' compensation premium rate ranking, which prices the same mix of jobs in every state using rates in effect on January 1, 2024. That makes it a fair way to compare states, and a rough first number for a business whose work is ordinary. It is not your rate.

Why your quote will differ

• Your class codes. Each type of work has its own rate. Office staff cost a small fraction of what roofers or tree trimmers do, so the state figure can be far off in either direction.
• Your claims history. Once a business is large enough to be experience rated, its modifier moves the premium up or down.
• Minimum premiums and fees. Very small payrolls usually pay the insurer's minimum premium instead, and states add assessments on top.
• The year-end audit. The premium you pay at the start is an estimate. The insurer checks your actual payroll after the policy year and bills or refunds the difference.

Owners who exclude themselves, and payroll for uninsured subcontractors, change the number too. Read the full guide to workers' compensation insurance for small business for who must carry it and what it pays.

Frequently asked questions

How is workers' comp insurance calculated?

Premium equals your payroll divided by 100, times the rate for your class code, times your experience modifier. Insurers then add state fees and apply any minimum premium.

How much is workers' comp for a small business?

It depends mostly on payroll, your state, and the type of work. The same payroll can cost several times more in a high-cost state, and far more for roofing than for office work. Enter your payroll above for a state-level starting point.

Where do I find my class code rate?

On a quote or policy from your insurer, or from your state's rating bureau. Your agent can tell you which class codes apply to your employees.

Why is my actual premium different from this estimate?

The state figure is an index weighted toward common occupations, not your rate. Your class codes, claims history, minimum premiums, and state fees all change the final number.

Where to go from here

Take the estimate to two or three agents and ask each for a quote on your actual class codes. Then compare it with what the rest of your cover costs in our guide to LLC insurance cost, or browse all the business insurance guides. Arhox is an independent publication, not an insurer, broker, or law firm; our editorial policy and disclaimer explain how these guides are prepared.