PA Workers Comp Calculator
Reference · 40 Terms
Pennsylvania Workers Compensation Glossary
Plain-English definitions of the terms you'll encounter when buying, managing, and controlling the cost of workers' compensation insurance in Pennsylvania.
Premium & Rating
Class Code (Classification Code)
A 3–4 digit code assigned by the PCRB to each type of business operation, used to determine the loss cost (base rate) for workers' comp premiums.
Read definition →Deposit Premium
The upfront payment required at workers' comp policy inception, typically 25–33% of estimated annual premium.
Read definition →Expense Constant
A flat $350 fee added to every Pennsylvania workers' comp policy to cover minimum administrative costs, regardless of premium size.
Read definition →Experience Modifier (EMR / MOD)
A multiplier based on your business's actual claims history compared to the expected claims for your industry, applied to your workers' comp premium.
Read definition →Hazard Group
A PCRB classification grouping similar-risk class codes together for actuarial credibility in calculating experience modifiers.
Read definition →Large Deductible Workers' Comp
A workers' comp structure for large employers where the insured pays all claims costs up to a per-claim deductible, reducing premium but increasing retained loss exposure.
Read definition →Loss Cost
The PCRB's actuarial estimate of expected workers' comp claim costs per $100 of payroll for a given class code, before insurer markup.
Read definition →Loss Cost Multiplier (LCM)
The carrier-specific multiplier applied to PCRB loss costs to produce a final workers' comp rate, reflecting the insurer's expenses, profit, and competitive position.
Read definition →Manual Premium
The base workers' comp premium calculated from payroll × loss cost × LCM, before applying experience modification or other adjustments.
Read definition →PA Act 57 Assessment
A state-mandated surcharge (2.18% in 2026) added to all Pennsylvania workers' comp policies, funding the Workers' Compensation Security Fund and other state programs.
Read definition →Pay-As-You-Go Workers' Comp
A billing arrangement where workers' comp premium is calculated and paid each payroll cycle based on actual wages, reducing upfront deposits and audit surprises.
Read definition →PCRB (Pennsylvania Compensation Rating Bureau)
The licensed rating organization that files workers' compensation loss costs and calculates experience modifiers for Pennsylvania employers.
Read definition →Retrospective Rating Plan
A workers' comp pricing plan for large accounts where actual losses directly affect final premium, with minimum and maximum premium limits.
Read definition →Claims & Benefits
Average Weekly Wage (AWW)
The calculated weekly earnings figure used as the basis for determining workers' comp wage replacement benefits in Pennsylvania.
Read definition →Lost-Time Claim
A workers' comp claim where the injured worker misses more than 7 days of work and becomes eligible for wage replacement benefits — the most EMR-impactful claim type.
Read definition →Medical-Only Claim
A workers' comp claim in which the injured worker requires medical treatment but misses fewer than 8 days of work, incurring no wage replacement costs.
Read definition →Occupational Disease
A work-related illness caused by exposure to workplace conditions over time, covered by Pennsylvania workers' comp like acute injuries.
Read definition →Partial Disability
A workers' comp benefit status for injured workers who can do some work but at reduced earnings, limited to 500 weeks under Pennsylvania law.
Read definition →Specific Loss Benefits
Scheduled benefit payments for permanent loss of or loss of use of a specific body part under Pennsylvania workers' comp law.
Read definition →Total Disability
A workers' comp benefit status for injured workers who cannot perform any work, entitling them to 2/3 of their average weekly wage subject to PA statutory limits.
Read definition →Wage Replacement (Indemnity Benefits)
Workers' comp payments to injured employees who cannot work, typically equal to 2/3 of the employee's average weekly wage subject to PA statutory maximums.
Read definition →Claims Management
Claims Management
The process of actively managing workers' comp claims from first report through resolution to minimize costs and protect the experience modifier.
Read definition →Medical Direction (Employer Right to Direct Care)
The Pennsylvania employer's right to require an injured worker to treat with a designated panel physician for the first 90 days of a workers' comp claim.
Read definition →Return-to-Work Program
An employer program that provides modified or light-duty job assignments to injured workers, reducing wage replacement costs and limiting EMR impact.
Read definition →Coverage & Carriers
Assigned Risk Plan (Pennsylvania Assigned Risk Plan)
A residual market mechanism that provides workers' comp coverage to PA employers who cannot obtain private market insurance, administered through the PCRB.
Read definition →Code 953 (Clerical Office Employee)
The workers' comp class code for clerical, administrative, and office employees in Pennsylvania — one of the lowest loss cost codes in the PCRB filing.
Read definition →Employer Liability (Part 2 of Workers' Comp)
The second coverage part of a workers' comp policy protecting employers from lawsuits related to work injuries — coverage limits are selected at policy inception.
Read definition →Exclusive Remedy
The legal doctrine that limits injured workers' recovery to workers' comp benefits, generally preventing them from suing their employer in tort for work injuries.
Read definition →SWIF (State Workers' Insurance Fund)
Pennsylvania's state-operated workers' compensation insurer of last resort, required to provide coverage to any PA employer who cannot obtain private market insurance.
Read definition →Wrap-Up Insurance (OCIP/CCIP)
A project-specific insurance program — Owner-Controlled (OCIP) or Contractor-Controlled (CCIP) — that provides workers' comp for all contractors on a large construction project.
Read definition →Compliance & Legal
Certificates of Insurance (Subcontractor COIs)
Documents proving subcontractors carry their own workers' comp coverage, required to exclude subcontractor payroll from your workers' comp audit.
Read definition →Corporate Officer Exemption
The option for Pennsylvania corporate officers who own at least 5% of corporate stock to exempt themselves from workers' comp coverage.
Read definition →Independent Contractor Classification
The legal determination of whether a worker is an independent contractor (not covered) or an employee (must be covered) for PA workers' comp purposes.
Read definition →Payroll Audit
The end-of-policy-year review by your insurer to verify actual payroll and class code allocation, determining whether you owe additional premium or receive a refund.
Read definition →Sole Proprietor Exemption
The PA workers' comp rule that sole proprietors with no employees are generally exempt from the mandatory coverage requirement.
Read definition →Stop-Work Order
A Pennsylvania government order requiring a business to cease all operations immediately due to failure to maintain required workers' comp coverage.
Read definition →Ready to put these terms to work?
Use our free PA workers' comp calculator to estimate your premium, then connect with a licensed PA agent who knows the PCRB market.