Workers Comp Manual Rate Starts Premium Calculation Process
The Workers Comp Manual Rate flies under the radar most of the time. Insureds usually concern themselves with the bottom line premiums.

There are approximately 600 classification codes plus hundreds more that are state-specific. Manual rate is the dollar amount assigned to each of the classification codes. The NCCI determines these rates using the statistical information taken from all employers’ claims reports. With this information, a determination of hazard or risk can be made for each classification code.
The Workers Comp Manual rate is the starting point for calculating the cost of a worker’s compensation policy.
These manual rates are examined yearly. This yearly review is done to ensure that enough funds are generated to operate the system and that each employer is responsible for their fair share of the total cost requirements.
If you look at a workers comp policy, audit, or E-Mod sheet, this figure usually appears just after the listing of the classification codes. The total of each rate is the manual premium. If the manual premium is not shown, it is advisable to calculate it on your own as a starting point.
©J&L Risk Management Inc Copyright Notice