Workers Compensation Insurance Pennsylvania Calculator

Common Questions

Pennsylvania Workers Compensation Insurance FAQ

• Is workers' compensation insurance required in Pennsylvania?

  Yes. Pennsylvania law (Act 305 of 1915) requires virtually all employers with one or more employees to carry workers' compensation insurance. Sole proprietors and certain agricultural workers may be exempt. Failure to carry coverage can result in fines, criminal penalties, and personal liability for injured workers' costs.
• How is workers' comp premium calculated in PA?

  The core formula is: (Annual Payroll ÷ 100) × Loss Cost × Loss Cost Multiplier × Experience Modifier, plus an expense constant ($350 for 2026) and PA Employer Assessment (2.18%). The Loss Cost is set by the PCRB per $100 of payroll for each class code. The LCM is an insurer's markup, typically between 1.20 and 1.80.
• What is a PCRB class code?

  The Pennsylvania Compensation Rating Bureau assigns a numeric code to each type of work activity. Each code carries a different loss cost per $100 of payroll, reflecting the historical injury frequency and severity for that type of work. For example, clerical office workers (Code 953) have a much lower loss cost than roofers (Code 551).
• What is the Loss Cost Multiplier (LCM) in Pennsylvania?

  The LCM is an insurance carrier's multiplier applied to the PCRB base loss cost. It covers the insurer's expenses, profit, and carrier-specific adjustments. In Pennsylvania, LCMs typically range from 1.20 to 1.80, with competitive carriers often filing around 1.40–1.60. Our calculator uses 1.50 as a neutral default.
• What is the PA Employer Assessment (Act 57)?

  Pennsylvania's Act 57 assessment is a state-mandated surcharge applied to all workers' comp policies in PA. For 2026, it is 2.18% of the total policy premium. This funds the Workers' Compensation Security Fund, the Supersedeas Fund, and other state programs. It is collected by insurers and remitted to the state.
• What is an Experience Modification Factor (EMR)?

  The Experience Modification Rate compares your actual loss history to the expected losses for businesses of your size and industry. An EMR of 1.00 is average. Below 1.00 means fewer-than-expected claims (you pay less); above 1.00 means more claims than expected (you pay more). New businesses start at 1.00 and become eligible for an EMR after 3 years of coverage.