How Workers’ Compensation Premiums Are Calculated

Several important factors determine workers’ compensation premiums in Georgia. Here’s what goes into the calculation.

Classification of Employees

Each job role is assigned a classification code based on the level of risk involved. For example, office workers typically have lower rates than construction workers due to the nature of their work. Accurate employee classification is crucial to ensure you’re not overpaying or underinsured.

Payroll Size

Premiums are primarily based on your total payroll. The higher your payroll, the more you may pay for workers’ compensation coverage. Insurers use payroll figures to estimate the potential exposure to workplace injuries.

Experience Modification Factor (Mod)

Your business’s claims history plays a significant role. If you’ve had fewer or less severe claims than similar businesses, you may receive a lower mod, which can reduce your premium. Conversely, a higher number of claims can increase your costs.

State Rates and Regulations

Georgia sets base rates for different job classifications, but insurance carriers may adjust them based on their underwriting guidelines. Staying informed about state-specific regulations is essential for compliance and budgeting.

How Our Team Supports Georgia Businesses

At United Business Insurance Company, we help our clients by:

• Reviewing employee classifications for accuracy
• Analyzing payroll and claims history to identify savings opportunities
• Explaining Georgia’s workers’ comp regulations and rates
• Comparing quotes from multiple carriers to find competitive options

Ready to take control of your workers’ compensation premiums? Contact our team today to discuss your needs and get personalized guidance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.