To put it bluntly, a lot of trucking companies can be very confused with how their workers compensation coverage is calculated. There seems to be different rates and fees for a number of factors so let’s see if we can provide a high level overview of how these base premium values are accumulated.


Payroll/Remuneration – includes but not limited to the following: gross wages, salaries & commissions, bonuses, vacation pay, holiday and sick pay.

This is the payroll of the position.

Important to note, each position will have a payroll figure because each position will have a different rate.

Ex: (With hypothetical values)

$50,000 of Administrative Staff

$150,000 of Driving Staff

$60,000 of Warehouse Staff


Each position will have a rate for how much it costs per $ of payroll. Positions of higher risk of injury (Warehouse workers) will be higher than lower risk positions (Administrative staff)

Ex: (With hypothetical values)

2.4% x ($50,000) for Administrative Staff = $1,200

8.7% x ($150,000) for Driving Staff= $13,050

12.5% x ($60,000) for Warehouse Staff = $7,500



Experience Modifier:

This factors in your company’s history with Workers Compensation, so rewards those with a longer history without claims and makes it so you pay less for a better track record.

This is represented with a multiplying number, starting at 1. The longer you operate without claims, the lower the multiplying number gets.

Ex: (With hypothetical values)

$21,750 x 0.90 (Ex-Mod) = $19,575

So what are these other fees?

Depending on your state and who your insurance is issued through, there can be other taxes & assessments and minimum premium values, that basic formula still applies to the base premium calculation so make sure to talk to your broker as to what other taxes may apply to your total accrued premium.

At RSI Insurance Brokers, we do have speciality arrangements with carriers to get you the best rates for Workers Compensation coverage, so feel free to reach out to us so click here for a quote for services or call us direct at 1-800-828-5273 so we can help!