Workers Compensation Premium Computation

a periodic payment that the insured pays to the insurance company in exchange for receiving insurance coverage.

the price of insurance for each unit of exposure.

Workers compensation insurance rates apply per $100 of payroll. A preliminary unmodified premium is determined by multiplying the appropriate rates for the applicable job classification by the premium basis (covered payroll divided by 100).

Classifications are designed to categorize employers who have common types of exposures. The classification is then structured to rate the entire business of the employer, not the individual occupations of employees within the firm.