How We Calculate PA Workers' Comp Premiums

Data Source

All loss costs are taken directly from the official PCRB (Pennsylvania Compensation Rating Bureau) loss cost filing effective April 1, 2026. The PCRB is the licensed rating organization for workers' compensation insurance in Pennsylvania. No adjustments or modifications have been made to the filed loss cost values.

Additional inputs from PCRB/PA Insurance Department publications:

• Expense Constant: $350 (flat per policy, 2026)
• PA Employer Assessment (Act 57): 2.18% of total policy premium (2026)
• Employer Liability Surcharge Factors (ELF): 0.0% (100/500/100), 1.1% (500/500/500), 1.4% (1000/1000/1000), 2.2% (2000/2000/2000)

The Full Calculation Formula

The calculator executes the following steps in order:

Step 1: Manual Premium

For standard class codes (numeric loss cost):

For special schedule codes (994 – Volunteer Fire First Responders, 989 – Volunteer Fire Support Staff), the loss cost is replaced by a fixed cost from the PCRB special schedule table, looked up by population served:

For A-Rated codes (class codes 133 and 9985 in the current filing), the calculator stops and displays an error. These codes require individual carrier underwriting and cannot be estimated from a standard formula.

Step 2: Employer Liability Surcharge

The ELF is 0 for the basic 100/500/100 limits, so SubjectPremium = ManualPremium for that selection.

Step 3: Experience Modification

New businesses and those without a formal PCRB experience rating should use 1.00 (the default). Businesses with a formal EMR from the PCRB should enter their actual value.

Step 4: Expense Constant

The $350 expense constant is a flat amount added to every policy regardless of size, covering basic policy issuance and administrative costs. It is set by the PCRB.

Step 5: PA Employer Assessment (Act 57)

Pennsylvania Act 57 requires all workers' comp insurers to collect a state assessment from employers. The 2026 rate is 2.18%. This funds the Workers' Compensation Security Fund, the Supersedeas Fund, and other state programs administered by the PA Bureau of Workers' Compensation.

What Is NOT Included in This Estimate

The following real-world factors are intentionally excluded from this MVP calculator:

• Schedule Rating: Individual underwriting credits or debits (up to ±25%) applied by the carrier based on premises, safety programs, management quality, etc.
• Retrospective Rating: Some large accounts are priced on a retro basis where the final premium is adjusted after the policy period based on actual losses.
• Premium Discount: Volume discounts for large premium accounts.
• Minimum Premium: Most carriers have a floor premium that may exceed the formula result for very small accounts.
• Multi-code allocation: Many businesses have employees in multiple class codes; this calculator accepts a single code per calculation.
• Carrier-specific endorsements: Additional premiums or credits unique to individual carrier filings.

Loss Cost Multiplier (LCM) Guidance

The LCM is the most variable input. Each insurer files their own LCM with the PA Insurance Department. We use 1.50 as the default as a neutral midpoint; actual filed LCMs in the PA market generally range from approximately 1.20 to 1.80 depending on the carrier and class code. For planning purposes, running the calculation at 1.20 (low) and 1.80 (high) will bracket the range of competitive market quotes you're likely to receive.

Accuracy and Limitations

This tool is designed for planning and estimation purposes. The results represent a reasonable estimate of the actuarial cost basis, but actual insurer quotes will differ based on underwriting, carrier selection, and individual risk factors. Always obtain formal quotes from licensed Pennsylvania insurers before making coverage decisions.