Basis for Insurance Premiums-NIOSH–Fort Worth, Texas Workers’ Compensation Defense Attorneys

Basis for Insurance Premiums

Throughout the history of workers’ compensation in the U.S., premiums for insurance policies have been determined by a set of factors related to
employer risks, primarily the mix of occupational classes they employ. Employers are assigned to work classifications according to state-sanctioned
rating bureau guidelines. In general, employers in classifications with greater injury and illness risks and loss costs have higher “manual rates.”
For example, a roofing contractor generally has a higher manual rate than a bank. Recommended or specified manual rates must be approved by
the state regulators in most cases. Additionally, those employers which qualify for experience rating and that have a history of greater injury
and illness claims and costs within the risk classes are charged even higher premiums through the application of an experience modification factor.
Those employers with fewer claims and lower loss costs benefit from lower premiums.


Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Fort Worth, Texas workers’ comp defense attorneys in Tarrant County who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

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