The cost of Workers’ Compensation is based upon three primary factors:
- The payroll for the business
- The employee’s job classification
- The employer’s claims history
The premium (excluding any discounts) for workers’ compensation insurance is calculated as follows:
Payroll (per $100) x Classification Rate x Experience Modifier = Premium
With this in mind, let’s review some of the most common mistakes an employer can make that may affect their Workers’ Compensation rate.