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Workers Comp Manual Rate – What Is It And How Is It Calculated?


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.

Graphic Of Calculator Workers Comp Manual Rate And Money With Eye Glass

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.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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