How is workers' comp premium calculated in Virginia?

Premium equals payroll divided by 100, multiplied by the class-code base rate, multiplied by your experience modifier, then adjusted by any schedule-rating credit or debit. Virginia uses NCCI classification codes and rates.

What is an experience modifier?

The experience modification factor (mod) compares your past claims history to similar businesses. A mod of 1.0 is average, below 1.0 earns a credit for a better-than-average safety record, and above 1.0 adds a surcharge.

What is the class-code base rate?

Each job type has an NCCI classification code with a base manual rate expressed in dollars per 100 dollars of payroll. Clerical work has a low rate while roofing or logging carries a much higher rate.

Does Virginia use a state fund or private carriers?

Virginia is a competitive private-market state — employers buy coverage from licensed private insurers rather than a monopolistic state fund. Rates are filed through NCCI and can vary by carrier through schedule rating.

How accurate is this estimate?

It applies the standard premium formula accurately, but real quotes also include expense constants, terrorism and catastrophe loads, premium discounts on large policies, and carrier-specific deviations. Treat it as a planning estimate, not a quote.

Virginia Workers' Compensation Premium Calculator

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Workers’ compensation insurance is a required cost for almost every Virginia employer, but the premium is not a flat percentage — it depends on the type of work, your payroll, and your claims history. This calculator applies the standard NCCI premium formula used in Virginia so you can estimate your annual cost before getting a formal quote.

How it works

Virginia premiums follow a multiplicative formula:

Payroll units. Total annual payroll is divided by 100, because rates are quoted per $100 of payroll.
Manual premium. Payroll units × the class-code base rate. A clerical code might be $0.20 per $100; roofing could be $15 or more.
Experience modifier. Manual premium × your experience mod. A mod of 1.0 is average; a 0.85 mod (good safety record) cuts the premium, while 1.20 raises it.
Schedule rating. An optional credit or debit (entered as a percentage) reflects carrier judgement about your specific risk — safety programs, management, premises.

The result is your estimated standard premium for that class of work.

Example and notes

Suppose you have $500,000 of annual payroll in a class code rated at $2.50 per $100, with an experience mod of 0.95 and no schedule rating. Payroll units are 5,000, manual premium is $12,500, and after the 0.95 mod the estimated premium is $11,875.

Real quotes layer on expense constants, catastrophe and terrorism loads, large-policy premium discounts, and carrier deviations, so your actual bill may differ. If you have multiple class codes, run the calculator once per code and add the results.