Preventing accidents from happening is the surest way to save money. Here are a few other things you should know:

How is my premium calculated?

Your premium, or the amount you pay for workers' comp insurance coverage, is based on three things:


The total amount of wages and salaries paid to your employees annually is one of the primary factors used to determine workers' compensation premiums, although it is not the only one. Classification codes and experience modifiers, both assigned by the National Council on Compensation Insurance (NCCI), are two of the other factors that usually figure most prominently in the calculations of your premiums.

Classification codes

In part, your premium is determined by a "classification code" assigned to your industry (e.g. painting, retail, etc.) by the NCCI. This code is based on the exposures to injury associated with your industry.

When an industry — say, construction — experiences more worker injuries, the classification code can change and raise rates on all companies within that industry. That's why we're committed to helping all policyholders keep their employees safe, as well as providing industry-specific safety programs to industries with historically higher injury rates.

Experience modifier

An experience modifier (or "e-mod") is a numerical rating assigned to your policy, also by the NCCI, based on your company's accident history. This number is used as a multiplier against the average premium rate of companies in your industry — in other words, a roofing business is compared only to other roofing businesses.

If your e-mod is lower than the industry average (which is calculated as 1.00), your premium will be, too. If your e-mod is higher than average, your premium will reflect this. We can help you keep your e-mod (and premium) low through our many safety services and return to work programs. More on e-mods.

Cost saving opportunities

We offer a variety of options that may help you lower your premium costs.

Premium size discount

If your standard premium is more than $10,000, you can receive a percentage discount that’s based on the total amount you pay.

Schedule rating

This plan applies to manual premiums of $10,000 and greater. It looks at your current risk characteristics and what your company has done and is currently doing as a predictor of performance.

Pinnacol performance credit

It’s all about being proactive. Manage risks and claims costs and earn a discount in the process. Learn more about the list of criteria for this discount by talking to one of our customer service representatives.

Safety group program

We offer a safety group program that can include a premium discount for participating policyholders.

Cost containment discount

This discount rewards you for having a safety program and achieving certification through the Colorado Worker’ Compensation Cost Containment Certification (CCC) Program. Our safety consultants, online safety resources and CCC webinars are available to you any time and can help you become certified.

Designated provider discount

You’ll receive a 2.5 percent discount for having designated medical providers. SelectNet, our preferred provider network, offers comprehensive care through a statewide network of over 3,300 occupational health practitioners. These aren’t just any medical providers. They’re experts in workers’ comp and dedicated to providing the best care in Colorado, period.

Deductible discount

This discount allows you to pay a portion of your claims costs on a per-claim basis in exchange for a premium discount.