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.
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.
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™ consulting programs and resources. More on e-mods.
Cost saving opportunities
We offer a variety of options that may help you lower your premium costs.