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Understanding workers’ compensation premium rates

On Behalf of | Nov 3, 2021 | Workers' Compensation |

Every employer and all employees need to know the basics of workers’ compensation insurance in Connecticut. One of the most important steps is to calculate the costs of the premiums and payments included with this type of compensation. First, it’s necessary to make sense of the numbers that are included with a typical workers’ comp claim.

How is the cost of your premium calculated?

The workers’ compensation premium is affected by the type of company and industry, the type of work performed, the number of employees, the company’s payroll and claims history.

The workers’ comp premium is calculated by multiplying the employee classification rate by the employer payroll, per $100, by the experience modifier rate. The employee classification rate is a three- or four-digit class code that is assigned to each employee based on the type of work duties and risks.

When is a calculator needed?

Using a workers’ compensation calculator is the first step in calculating how much money you are eligible to receive. Every calculator varies in the type of information that you must input, such as the types of injuries, the amount of time taken off work, the compensation received while off, etc. You may want to receive an estimated rate of your workers’ compensation benefits before filing a claim.

Paying more attention to the premiums

There are both companies and individuals being overcharged for their workers’ compensation premiums. This occurs when errors are made while calculating the cost of a premium. There are ways to save on premiums, and the first step is to use a workers’ compensation calculator to determine the rates. The rate is just an estimate but is beneficial in helping injured workers know the extent of benefits they need.