Workers' Comp Insurance Calculator
Estimate Your Annual Premium by State

Enter your state, industry, and payroll to get an instant estimate of your workers' compensation insurance cost — no broker call needed.

✓ Free · No signup All 50 states 2025 rate data Includes experience mod

Business Details

State

Industry / Job Class

Number of Employees

Annual Payroll (total)

Experience Modifier (E-Mod) — 1.0 = industry average

1.00

Below 1.0 = discount (good safety record) · Above 1.0 = surcharge (prior claims)

Estimated Annual Premium

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Per Month

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Per Employee

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Per $100 Payroll

Carrier Options at a Glance

How Workers' Comp Premiums Are Calculated

Workers' compensation insurance premiums are not one-size-fits-all. Your cost depends on four key factors: where your business operates (state), what your employees do (class code), how much you pay them (payroll), and your claims history (experience modifier).

The Premium Formula

Formula Annual Premium = (Total Payroll ÷ 100) × Class Code Rate × State Factor × Experience Modifier

The class code rate is the base cost per $100 of payroll for a specific type of work. Rates are set by state rating bureaus (mostly NCCI) and vary significantly by risk level — a clerical worker costs roughly $0.21 per $100 of payroll, while a roofer can cost $35+ per $100.

Workers' Comp Rates by Industry

Industry	Class Code	Base Rate / $100	Risk Level
Clerical / Office	8810	$0.21	Low
Outside Sales	8742	$0.45	Low
Retail Store	8017	$1.28	Low
Restaurant / Food Service	9082	$2.85	Medium
Janitorial / Cleaning	9014	$5.90	Medium
Landscaping / Lawn Care	0042	$9.50	Medium
Trucking / Long Haul	7231	$12.50	High
Carpentry (residential)	5645	$22.50	High
Roofing	5551	$35.20	Very High

How to Lower Your Workers' Comp Premium

Improve your safety program — fewer claims lower your experience modifier over time
Accurate payroll classification — employees doing only clerical work should be coded 8810, not a higher-rate class
Return-to-work program — bringing injured employees back in modified duty reduces claim costs
Shop carriers annually — rates vary 20–40% between carriers for the same risk
Pay-as-you-go policies — pay based on actual payroll each period, avoid large audits

State Differences

Workers' comp is regulated at the state level. California, New York, and Illinois have some of the highest rates. North Carolina, Indiana, and Arkansas tend to have lower rates. Four states (North Dakota, Ohio, Washington, Wyoming) operate exclusive state funds — private insurers cannot sell workers' comp there.

Risk Level by Industry

Low risk — Office, retail, sales ($0.20–$2/100)

Medium risk — Food service, cleaning, light manufacturing ($2–$10/100)

High risk — Construction, trucking, roofing ($10–$40+/100)

Rates shown are national averages. Your actual rate depends on state, experience, and carrier.

Frequently Asked Questions

Is workers' comp required for my business?

Almost every state requires workers' comp if you have employees. Requirements vary — some states exempt businesses with fewer than 3–5 employees, some require it from employee #1. Sole proprietors and partners are often exempt but can opt in. Texas is the only state where coverage is fully optional for private employers.

What is an experience modifier (e-mod)?

The experience modifier compares your actual claims history to what's expected for businesses like yours. An e-mod of 1.0 means you're average. Below 1.0 means fewer claims than average (you pay less). Above 1.0 means more claims (you pay more). New businesses start at 1.0 until enough data exists (typically 3 years).

What does workers' comp actually cover?

Workers' comp covers medical bills, lost wages, and rehabilitation for employees injured on the job. It also provides death benefits to dependents. In exchange, employees generally cannot sue the employer for workplace injuries (the "exclusive remedy" doctrine).

How do insurers audit my payroll?

Most workers' comp policies are issued on an estimated payroll, then audited at policy end. If your actual payroll was higher than estimated, you'll owe additional premium. If lower, you'll receive a refund. Pay-as-you-go policies (monthly payroll reporting) eliminate large audit surprises.

Can I get workers' comp as a sole proprietor?

Sole proprietors and partners are usually exempt from mandatory coverage but can opt in voluntarily. This makes sense if you want personal injury coverage while on a job site, or if a client contract requires you to carry it. Coverage for owners is typically at a flat rate, not based on actual wages.