How is workers' comp premium calculated in Vermont?

Premium equals (annual payroll ÷ 100) × the class-code base rate × your experience modifier. The base rate is dollars of premium per $100 of payroll, set by the classification code that describes the work performed.

What is an experience modifier?

The experience modification factor (mod) adjusts your premium based on your claims history versus similar businesses. A mod of 1.0 is average; below 1.0 lowers premium for a strong safety record, above 1.0 raises it.

Where do class-code base rates come from?

Vermont uses NCCI classification codes, and base rates are filed by carriers and approved by the state. Each code reflects the injury risk of the work, so a roofer's rate is far higher than an office clerk's.

Does Vermont have a state workers' comp fund?

No. Vermont workers' compensation is provided through private insurers and self-insurance, not a state fund. Employers shop carriers, so quotes and final rates can vary for the same class code.

Is my data sent anywhere?

No. The calculation runs entirely in your browser. Nothing you enter is uploaded or stored.

Vermont Workers' Compensation Premium Calculator

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Vermont employers pay workers’ compensation premium based on the kind of work their employees do, their total payroll, and their claims history. This calculator estimates annual premium from your class-code base rate, annual payroll, and experience modifier — the three factors carriers use.

How it works

The standard workers’ comp premium formula is:

Divide annual payroll by 100 to get the number of rate units.
Multiply by the class-code base rate (dollars of premium per $100 of payroll).
Multiply by your experience modifier (1.0 if you have no mod assigned).

So premium = (payroll ÷ 100) × base rate × mod.

Example

A small Vermont contractor with $300,000 of payroll in a class code rated $5.50 per $100, and an experience mod of 0.95, would pay roughly (300000 ÷ 100) × 5.50 × 0.95 = $15,675 in annual premium before fees and discounts.

Notes

This is an estimate of manual premium. Real Vermont policies also apply schedule credits/debits, expense constants, terrorism and catastrophe charges, and minimum premiums, and combine multiple class codes. Vermont has no state fund — get quotes from licensed carriers for binding numbers.