How is a Florida workers' comp premium calculated?

Premium equals (annual payroll ÷ 100) × the classification base rate × your experience modifier. The base rate is dollars of premium per $100 of payroll and is set by NCCI and approved by Florida's Office of Insurance Regulation.

What is an experience modifier?

The experience modifier (mod) compares your past claims to the average employer in your class. A mod of 1.0 is average; below 1.0 means fewer claims and a discount, above 1.0 means more claims and a surcharge. New businesses usually start at 1.0.

Who must carry workers' comp in Florida?

Florida generally requires coverage for non-construction employers with four or more employees and for construction employers with even one employee. Sole proprietors and partners can sometimes elect out. Penalties for non-coverage are steep.

Why do class codes matter so much?

Each job classification carries its own injury risk and therefore its own base rate. A clerical code may cost well under $1 per $100 of payroll, while a roofing or framing code can exceed $10 per $100, so accurate classification is essential.

Does this include the expense constant or assessments?

No. This is the manual premium. Real Florida policies may add an expense constant, premium discount for large policies, terrorism charge, and state assessments. Treat the result as a base estimate, not a final quote.

Florida Workers' Compensation Premium Calculator

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Workers’ compensation insurance is mandatory for most Florida employers, and its cost is driven by three numbers: your payroll, the risk of the job classification, and your claims history. This calculator applies the standard NCCI premium formula used in Florida.

How it works

Florida uses rates filed by the National Council on Compensation Insurance (NCCI) and approved by the state Office of Insurance Regulation. The manual premium formula is:

premium = (annual payroll ÷ 100) × class base rate × experience modifier

Annual payroll is gross wages in the classification.
Class base rate is dollars of premium per 100 dollars of payroll. Low-risk clerical codes can be under 0.50 dollars; high-risk roofing or framing codes can exceed 10 dollars.
Experience modifier scales the premium by your claims history: 1.0 is average, below 1.0 is a credit, above 1.0 is a debit.

Example

A small contractor with 300,000 dollars of payroll in a class rated at 6.00 dollars per 100, with an experience mod of 1.10, pays (300,000 ÷ 100) × 6.00 × 1.10 = 3,000 × 6.00 × 1.10 = 19,800 dollars in estimated annual manual premium.

Notes

This is the manual premium estimate only. Real Florida policies layer on an expense constant, large-policy premium discounts, a terrorism charge, and state assessments, and split payroll across multiple class codes. Florida generally mandates coverage for construction employers with one or more workers and non-construction employers with four or more. Get an actual quote from a licensed carrier; verify rules with the Florida Division of Workers’ Compensation.