Workers’ Compensation 101

Workers' compensation insurance hero

Question 7

How are workers’ compensation premiums calculated?

Premium calculations are generally based on:

  1. Classification of employees (based on job duties)
  2. Total payroll for each classification
  3. Classification of your business (industry you’re in)
  4. The state where coverage is issued
  5. Your past loss experience (claims experience)
  6. Adjustments (e.g., credits for workplace safety programs)

Next Question: How do you purchase coverage?

The information contained in this website represents the products and services available through one of the business groups of Automatic Data Processing Insurance Agency, Inc. (ADPIA). ADPIA services mid and large size clients with various insurance products and services through its other business groups.

All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners, 1 ADP Blvd., Roseland, NJ 07068. CA license # 0D04044. Licensed in 50 states. Automatic Data Processing Insurance Agency, Inc. is an affiliate of ADP, LLC. Certain services may not be available in all states. Certain services are provided through the carrier partners and an additional carrier fee may apply. ADP and the ADP Logo are registered trademarks of ADP, LLC. Copyright © 2016 ADP, LLC.