How is workers' comp premium calculated in Connecticut?

The base formula is annual payroll divided by 100, multiplied by the class-code rate (expressed per $100 of payroll). That manual premium is then multiplied by your experience modification rate, adjusted by any schedule credits or debits, and an expense constant is added. Connecticut carriers build rates on NCCI loss costs approved by the state Insurance Department.

Does Connecticut have a state workers' comp fund?

No. Connecticut is a private-market state with no monopolistic state fund, so coverage is purchased from private insurance carriers. Each carrier files its own loss-cost multiplier with the Connecticut Insurance Department, which is why quotes for the same class code can differ between insurers.

What is an experience modification rate (EMR)?

The EMR, or x-mod, compares your past claims experience to the industry average for your class. An EMR of 1.00 is average, below 1.00 earns a credit (lower premium), and above 1.00 is a debit (higher premium). Employers usually qualify for an experience rating once their premium is large enough to be statistically credible.

Why does the class code matter so much?

Class-code rates vary enormously by job hazard. Clerical office work might be under $0.20 per $100 of payroll, while roofing can exceed $18 per $100. Misclassifying employees into a lower-rated code is a common audit problem, so payroll must be reported under the correct NCCI code for each type of work.

Is this calculator an actual insurance quote?

No. It is an estimate built on representative Connecticut class-code rates and the standard NCCI premium formula. Your binding premium depends on the exact codes on your policy, audited payroll, your verified EMR, carrier-specific schedule rating, and minimum premium rules. Always confirm with a licensed Connecticut agent.

Connecticut Workers' Compensation Premium Calculator

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The Connecticut Workers’ Compensation Premium Calculator estimates what an employer will pay for workers’ comp coverage in Connecticut using the same formula private carriers use: payroll, class-code rate, and experience modification rate. Because Connecticut has no state fund, every policy is written by a private insurer on NCCI loss costs, so this tool helps you sanity-check a quote or budget for a new hire.

How it works

The premium is built up in stages:

Manual premium = (annual payroll / 100) × class-code base rate. Rates are quoted per $100 of payroll, so $250,000 of clerical payroll at a $0.18 rate produces a 2500 × 0.18 = $450 manual premium.
Modified premium = manual premium × experience modification rate (EMR). An EMR of 1.00 leaves it unchanged; 0.85 cuts it 15%; 1.20 raises it 20%.
Schedule rating applies a carrier credit or debit (a percentage) for risk factors like safety programs or claims history.
An expense constant is added to cover fixed policy costs, giving the estimated standard premium.

Connecticut specifics

Connecticut regulates workers’ comp through the Connecticut Insurance Department and uses NCCI class codes and loss costs. There is no monopolistic state fund, so you buy from private carriers — and each carrier files its own loss-cost multiplier, which is why the same class code can be priced differently between insurers. Connecticut also has strong anti-fraud and misclassification enforcement, so reporting payroll under the correct code for each role is essential at audit time.

Notes and example

A landscaping employer with $300,000 of payroll at a $5.40 rate has a 3000 × 5.40 = $16,200 manual premium. With a 0.90 EMR that becomes $14,580, and a 5% schedule credit lowers it to about $13,851 before the expense constant. The output here is an estimate for planning, not a binding quote — confirm the exact class codes and rates with a licensed Connecticut agent.