Workers Comp Calculator

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Contributor, Benzinga
Updated: September 19, 2022

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Workers compensation protects employers from risk and offers various benefits to employees if they are injured while working. The benefits an employee is entitled to depend on the type of injury sustained and the employee’s ability to recover, return to work or return to a similar position. An easy way to determine the amount of money an employee may receive is to use a workers’ compensation calculator.

Workers Compensation Calculator

A workers’ comp calculator also exists for employers to price what a workers’ comp policy would cost, depending on their industry, number of employees and total payroll. Remember, when you are required by law to carry workers’ comp insurance, you must understand how to make it affordable for your business, while also providing your employees with the care they deserve in their time of need.

Workers' comp calculators are based on this equation:

Workers Compensation Equation

(Annual Employee Payroll $ Amount/100) x Workers Comp Insurance Rate by Location = Estimated Workers Compensation Cost

Because you’ve done the math, you can get a good idea of how much these policies will cost. Remember, though, that an insurance carrier is not using this exact calculator. This is a tool you can use to learn more about coverage before shopping. In this way, you know when a carrier is charging too much, just enough or offering a discounted rate.

Moreover, this information will help you ask the right questions as you look over workers’ comp coverage and wonder:

  • Why the coverage is so expensive
  • Why the coverage is so cheap
  • If the carrier offers all the programs you need
  • If the customer support offered is appropriate for your business

Also, you can ask these questions of an insurance agent or brokerage who is marketing the policy on your behalf.

Top Workers‘ Compensation Companies

Ready to jump right to comparing plans? Check out our providers below.

  • The Hartford Workers Comp
    More Details
    Best For
    #1 provider of workers comp for small businesses
    Overall Rating
    Read Review
    securely through The Hartford Workers Comp's website
    More Details
  • CoverWallet SBI (MediaAlpha)
    More Details
    Best For
    Start-ups, the self-employed and small businesses
    Overall Rating
    Read Review
    More Details
  • Hiscox
    More Details
    Best For
    Small businesses with both part and full-time employees
    Overall Rating
    Read Review
    securely through Hiscox's website
    More Details
  • Progressive Workers Comp
    Best For
    Bundling commercial policies
    Overall Rating
    securely through Progressive Workers Comp's website

Workers’ Compensation Insurance Coverage Explained

Workers’ compensation pays for medical expenses and missed wages resulting from an accidental injury that arises during employment. In addition to wage reimbursement and medical or hospital bills, workers comp insurance provides benefits for the following:

Temporary total disability: This type of injury results in the employee being temporarily unable to complete functions of the job.

Temporary partial disability: If an injury results in an employee temporarily being unable to complete the full job functions but can work in a reduced capacity, this is said to be a temporary partial disability.

Permanent total disability: As the name suggests, this type of injury results in the employee being totally disabled permanently. These are the more severe injuries that usually include the loss of use of arms, hands, legs or feet.

Permanent partial disability: These types of injuries result in an employee who has recovered from an injury but is left partially incapacitated.

Because workers’ comp insurance can vary by state, it is critical to check local laws to determine applicable benefits. This scenario is also where a workers’ comp calculator would be beneficial. The Alaska Department of Labor and Workforce Development, for example, has a workers’ comp calculator that allows employees to determine any benefits they are eligible for based on the type of injury they sustain. Other states may have something similar as well.

Workers Compensation Insurance Provider Reviews

If you want to protect your business from financial and legal risk while ensuring your employees’ safety, you need workers’ comp insurance. We understand that you want a safe workplace that’s covered by the right policy at the right price. Here are our picks for the best workers’ comp insurance.

The Hartford

  • The Hartford Workers Comp
    More Details
    Best For
    #1 provider of workers comp for small businesses
    Overall Rating
    Read Review
    securely through The Hartford Workers Comp's website
    More Details

With more than 200 years of experience, The Hartford is selected among the nation’s top workers’ comp insurance carriers.

The insurer is considered the best choice for worker’s compensation policies because of its preferred medical provider network with more than 1 million providers who treat workplace injuries. In fact, they're the #1 provider of workers comp coverage to small businesses.

It also offers more than 65,000 pharmacies in the U.S. to fill prescriptions usually with no out-of-pocket expense for injured workers, and a network of nurse care managers to help coordinate the injured workers’ care with doctors and therapists.

The Hartford offers companies pay-as-you-go billing solutions based on actual payroll, which can help manage cash flow and reduce audit surprises.

CoverWallet

  • CoverWallet SBI (MediaAlpha)
    More Details
    Best For
    Start-ups, the self-employed and small businesses
    Overall Rating
    Read Review
    More Details

Insurance for your business can be confusing. If you’re unsure what type of insurance your business may need and you’re not sure where to start, CoverWallet is your best bet.

It has an insurance assessment, along with a calculator similar to a workers’ comp calculator, that allows you to input your industry, ZIP code and revenue.

Based on this information, CoverWallet will provide a list of policies from which your business can benefit, along with the average price. It can even quote you with multiple companies so you can compare prices.

Progressive Workers’ Comp Insurance

  • Progressive Workers Comp
    Best For
    Bundling commercial policies
    Overall Rating
    securely through Progressive Workers Comp's website

Not only does Progressive offer workers’ compensation insurance, it also offers general liability, commercial auto and many other policies that are beneficial for a small business.

Multiple-policy discounts exist for insured companies that carry other business insurance through Progressive. Quoting is easy to complete online, and competitive rates make Progressive more attractive to small-business owners.

biBERK Workers’ Comp Insurance

  • biBERK
    More Details
    Best For
    Staying compliant with state and federal regulations
    Overall Rating
    Read Review
    securely through biBERK's website
    More Details

When looking for a workers’ comp insurer, financial strength is essential. biBERK workers’ comp is a part of the Berkshire Hathaway Inc. (NYSE: BRK.A) family of companies, which means its AM Best Co. financial rating is strong at A++.  I

n addition, its prices are lower than traditional insurance companies because there are no agents. But its most significant benefit, which makes it the best overall company for workers’ comp insurance, is the safety resources provided to its insureds to keep workplace injuries at bay.

How to Compare Workers’ Comp Insurance

While price is most often a factor when comparing workers’ comp insurance, it should not be the only consideration. You should also take a company’s customer service and claims handling into account as well. Customer reviews are usually an excellent way to determine whether a company will be easy to work with. As mentioned previously, workers’ compensation is an auditable policy, which means you will be communicating with the insurer regularly, and so it is critical to have a good relationship with whichever company you choose.

Also, if you have a claim, you will want a company with the funds to pay it, so reviewing a company’s financial rating is also a great idea to ensure its solvency. AM Best, Demotech Inc., S&P Global Ratings and Moody’s Investors Service are just a few of the rating agencies you can use to measure the financial strength of insurance companies.

Use a Workers' Comp Calculator to Buy Workers' Compensation Insurance

A workers’ comp calculator can be used by both employers and employees, depending on the information needed. Determining the price of a workers’ comp policy is relatively easy for employers once they know what factors are used. A workers’ comp calculator is a helpful tool for this purpose. For employees, not knowing what benefits they may receive if they’re involved in a workplace accident can be an additional worry on top of being injured. A workers’ comp calculator can provide some peace of mind by providing the exact amount they are entitled to. Either way, it’s essential to be educated on workers’ compensation insurance to ensure you are adequately covered in case of an injury.

Frequently Asked Questions

Questions & Answers

Q
What if I lose or hire employees during my workers' comp policy term? Will my price change?
A

Workers’ compensation insurers conduct audits at the end of every policy term to ensure the price you were charged is accurate. If the payroll increased, for example, you may owe additional money. Conversely, if the amount of your payroll decreased, you would receive a refund.

Q
Where can I find the NCCI class codes to use in a workers’ comp calculator?
A

Class codes are automatically provided in some workers’ comp calculators online. You can also search for the job title and function on the NCCI’s website to pull the class codes.

Methodology

Benzinga crafted a specific methodology to rank workers comp insurance. We prioritized carriers based on coverage options, specialized industries, customer service experience and how quickly and easily you're able to get insured including online tool usage. We also included workers comp insurance quote aggregators in lists to make it easy and efficient to compare policy quotes and options. To see a comprehensive breakdown of our methodology, please visit see our Workers' Compensation Insurance Methodology page.

Most Dangerous Industries Per State

The construction industry reports the most injuries and workers' compensation claims in 38 out of 50 states.

Second place goes to the forestry industry, followed by the transportation industry. By law, businesses with more than 1 employee must carry workers' compensation insurance. Workers' compensation insurance protects both your business and employees and creates a safety net for wage replacements and medical benefits.

Use our calculator to determine how much workers' compensation will cost you and your business.

Sources