Web-based calculator helps companies gauge workers comp costs

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A Pennsylvania-focused platform known as PA Workers Comp Calculator has been developed to analyze workers’ compensation costs, class codes, and premium estimate drivers for employers across the state. 

According to Alex Cortes, founder of the website, any employer in Pennsylvania with employees needs to take workers’ comp seriously because coverage is mandatory for most employers under state law.  

He said the industries that usually need to pay especially close attention are construction, transportation and warehousing, manufacturing, agriculture, and healthcare-related operations, especially hospitals and nursing/residential care.  

“Those are the kinds of sectors where injury frequency and claim exposure tend to be more significant, and where classification and job duties can have a meaningful effect on premiums,” Cortes said.

A few of the biggest issues impacting premiums are payroll, class code, prior loss experience, and the carrier’s pricing approach, he said.  

In Pennsylvania, workers’ comp pricing starts with classification and loss-cost structure, and experience modifications are used to reflect prior payroll and loss data.  

“Carriers can also apply schedule rating adjustments and compare pricing by class, so two employers with similar operations can still see different final pricing depending on risk history and underwriting,” Cortez said. 

He said the practical value of the calculator is that it gives employers a clearer way to understand what is driving their cost before they get into the quote process.  

“For many companies, workers’ comp is something they know they need, but not something they fully understand until renewal, audit, or a claim issue comes up,” he said.

He noted that employers need to understand that a wide variety of injuries are covered under workers comp.  

The big categories employers should keep in mind are lifting and overexertion injuries, sprains/strains/tears, slips/trips/falls, struck-by or contact injuries, vehicle-related incidents for driving-heavy operations, and repetitive-motion or back injuries.  

National BLS data for 2024 showed sprains, strains, and tears as the largest days-away-from-work category, along with a very large number of falls, slips, and trips cases.  

“We try to make that easier by helping them understand classification, premium drivers, and what questions to ask when they start comparing coverage options,” said Cortes. “That can help with budgeting, quote shopping, and just making more informed decisions.”