How is a Rhode Island workers' comp premium calculated?

The base formula is (annual payroll / 100) x class-code rate x experience modifier. The class-code rate reflects the injury risk of the job, and the experience modifier adjusts for your company's claims history relative to the industry average.

What is an experience modification factor?

It is a multiplier (the 'mod') comparing your actual claims to expected claims for businesses of your size and class. A mod of 1.00 is average, below 1.00 lowers your premium, and above 1.00 raises it. New employers usually start at 1.00.

Does Rhode Island use a state fund or private carriers?

Rhode Island workers' comp is written through private insurers and the Beacon Mutual Insurance Company, a quasi-public carrier that serves as the market of last resort. Class rates are filed through NCCI; your carrier may apply scheduled credits or debits on top.

Why is my actual quote different from this estimate?

Real premiums layer on expense constants, schedule rating credits/debits, premium discounts for size, terrorism and assessment charges, and minimum premiums. This tool models the core manual-premium math only, so treat it as a planning estimate.

Rhode Island Workers' Compensation Premium Calculator

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Rhode Island employers buy workers’ compensation insurance priced from the payroll of each job classification. This calculator applies the standard manual-premium formula — payroll, class-code rate, and your experience modifier — to estimate your annual cost before carrier credits and surcharges.

How it works

Workers’ comp premium starts from a manual rate assigned to each job classification code. The rate is quoted in dollars per $100 of payroll, so a rate of 2.50 means $2.50 of premium for every $100 your employees earn in that class. The core formula is:

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

The experience modifier (the “mod”) compares your real claims history to the expected average for your industry and size. A mod of 1.00 is neutral, a mod below 1.00 rewards a clean safety record, and a mod above 1.00 penalizes frequent or severe claims.

Example

A landscaping firm in a class with a 4.80 rate and $300,000 of annual payroll has a manual premium of (300,000 / 100) x 4.80 = $14,400. With a favorable experience modifier of 0.90, the modified premium drops to 14,400 x 0.90 = $12,960 before any carrier credits.

Notes

Real Rhode Island quotes add expense constants, schedule rating, premium discounts, terrorism charges, and state assessments, and they enforce a minimum premium. Rhode Island coverage is written by private carriers and Beacon Mutual, with rates filed through NCCI. This tool estimates only the underlying manual and modified premium; confirm your governing class code and final rate with your agent or at dlt.ri.gov.