Free tool
Workers comp cost estimator
By Umair Nawaz, founder of Lirevon Updated How we test tools
See what workers comp really costs your tree company per year, per month and per crew-day. Type your payroll and the rate per $100 from your own quote. You also get a rough audit check, so the bill at the end of the year is not a surprise.
Related: workers’ compensation, experience modification rate, overhead, how Lirevon helps you book more jobs.
Not insurance advice. This is a math helper only. We do not give rates, and your real premium can include charges this tool does not know about. Your quote and a licensed agent in your state have the final word.
1. Field crew payroll (tree work)
2. Office payroll (optional)
Office and clerical staff usually have their own, lower rate. Leave at 0 if you have no office staff.
3. Policy details and work days
4. Audit check (optional)
Type the field payroll your policy was priced on. The tool compares it with the payroll above, which should be your real or expected payroll for the year.
Workers comp estimate
Add your tree work rate from your quote to see the cost.
Yearly cost
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Per month
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Per crew-day
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Per $100 of all payroll
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Per field worker-hour
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Estimate only, built from the numbers entered. Not a quote and not insurance advice. Your insurer's bill and audit decide the real cost.
How the math works
- Field payroll = field workers × wage per hour × paid hours per year. Or the yearly number you typed.
- Tree work premium = field payroll ÷ 100 × your tree work rate.
- Office premium = office payroll ÷ 100 × your office rate.
- Yearly cost = (tree work premium + office premium) × experience mod + other charges.
- Per month = yearly cost ÷ 12. Per crew-day = yearly cost ÷ (crews × work days per crew).
- Per field worker-hour = tree work premium × mod ÷ (field workers × paid hours). Shown only when you work payroll out from crew size.
- Audit check = (field payroll − payroll on the policy) ÷ 100 × tree work rate × mod. A plus number is a possible extra bill; a minus number is a possible refund.
Real policies can also have discounts, deposits and state charges. Put any you know about in "other charges".
Questions about workers comp costs
Short explanations, not legal or insurance advice. Rules differ by state.
How is workers comp cost worked out for a tree service?
In most cases the insurer takes your payroll for each job class, divides it by 100 and multiplies it by the rate for that class. Then it applies your experience mod, if you have one, and adds any other charges on the quote. This tool does the same math with the numbers from your own quote. Short explanation, not insurance advice.
What rate should I use for tree work?
Use the rate printed on your own quote or policy. Rates for tree trimming and removal change a lot from state to state and from insurer to insurer, so we do not give one. If you do not have a quote yet, ask a licensed insurance agent in your state.
What does "rate per $100 of payroll" mean?
It is the price for every $100 you pay in wages in that job class. With a made-up rate of 10, every $1,000 of crew wages would cost $100 in comp. That number only shows the math. It is not a rate for tree work.
Why does office staff have a separate rate?
Office and clerical work is a different class with much less risk than climbing or running a chipper, so it usually has its own, lower rate. Keep office payroll separate so it is not charged at the tree work rate. Ask your agent how your people should be classed.
What is an experience mod?
It is a number that compares your past claims with similar companies. 1.00 is average. A mod of 0.90 cuts the premium by 10%, and 1.20 raises it by 20%. Small or new companies often do not have one, so leave it at 1.00 unless your quote shows a different number.
What is a workers comp audit?
Your premium at the start is based on the payroll you estimate. After the policy year, the insurer checks your real payroll. If you paid more wages than you estimated, you owe the difference. If you paid less, you may get money back. The audit check in this tool shows roughly how big that bill or refund could be.
Do subcontractors count toward my payroll?
They can. If a sub does not have their own workers comp, many insurers add what you paid them to your payroll at audit. Collect a certificate of insurance from every sub before they work. Ask your agent how your insurer handles this. Short explanation, not legal or insurance advice.
Do owners have to be on the policy?
It depends on your state and how your company is set up. Some states let owners or officers opt out, and some do not. Ask your agent or your state workers comp office. Short explanation, not legal advice.
Is overtime counted in comp payroll?
In many cases only part of overtime pay counts, but the rules depend on your state and insurer. Ask your agent. If you are not sure, leave overtime in the payroll here so the estimate is on the safe side.
How do I add comp to my job prices?
Use the per crew-day number to see what each working day has to cover. If you work out payroll from crew size and wage, the tool also shows the comp cost per worker per hour. Add that to your loaded hourly crew cost in the crew day rate calculator, so every quote pays for it.
Is anything I type sent to Lirevon?
No. The math runs in your browser. Your numbers are only kept in this browser on this device so the form is filled in next time. Clear your browser data to remove them.
Comp is a cost of every job
Cover your costs. Then book more jobs.
Lirevon sets up missed-call text-back, an AI receptionist, follow-ups and review requests for tree companies, so the calls that pay for your crews, gear and insurance turn into booked work.