How is Louisiana workers' comp premium calculated?

The standard formula is premium = (annual payroll / 100) x class-code base rate x experience modifier. Payroll is divided into 100-dollar units, multiplied by the rate for the job classification, then scaled by your claims-history modifier.

What is the experience modification factor?

The experience mod (e-mod) compares your past claims to the expected losses for similar employers. A mod of 1.00 is neutral; below 1.00 earns a credit for a clean record, above 1.00 surcharges for worse-than-average losses.

Where do I find my Louisiana class-code base rate?

Rates come from NCCI loss-cost filings adjusted by your carrier (LWCC or a private insurer). Your policy declarations page lists the class code and rate per 100 dollars of payroll for each job type you employ.

Does Louisiana use a state fund?

Louisiana Workers' Compensation Corporation (LWCC) is a large state-created mutual insurer, but the market is competitive — private carriers also write coverage. Rates and credits vary by carrier, so this is an estimate, not a quote.

Are multiple job classifications handled?

This tool prices one classification code at a time. Employers with several job types should run each class code's payroll separately and add the premiums together for a total.

Louisiana Workers' Compensation Premium Calculator

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Workers’ compensation insurance in Louisiana is priced per $100 of payroll, not as a flat fee. Each job type carries a classification code with its own base rate reflecting injury risk — a roofer’s rate is far higher than an office clerk’s. This calculator estimates your annual premium from three inputs: payroll, the class-code base rate, and your experience modification factor.

How it works

The standard rating formula used across the United States, including Louisiana, is:

premium = (annual payroll / 100) x class-code base rate x experience modifier

Payroll units. Your annual payroll is divided by 100, because rates are quoted per $100 of payroll.
Manual premium. Multiply payroll units by the class-code base rate (dollars per $100). This is the “manual” premium before your loss history is considered.
Experience modifier. Multiply by your e-mod. A clean record (mod below 1.00) earns a credit; a worse-than-average record (mod above 1.00) adds a surcharge. New or small employers default to 1.00.

The result is your estimated annual premium; dividing by 12 approximates the monthly cost.

Tips and example

A landscaping crew with $200,000 of payroll in a class code rated at $8.50 per $100, with a neutral mod of 1.00, would owe roughly 200000 / 100 = 2000 units x $8.50 = $17,000 annually. Improve the mod to 0.85 after several claim-free years and the premium drops to about $14,450.

Real Louisiana quotes layer on expense constants, schedule credits or debits, and statutory assessments, and LWCC may pay policyholder dividends in profitable years — so treat this as a planning estimate and verify against your declarations page or an agent quote.