Loss Cost Multiplier

Looking for information about the loss cost multiplier (LCM) pertaining to workers compensation insurance rates? See below for the definition, formula, and a list of loss cost multipliers by company. Use this page to calculate the manual rates of various insurance companies.

Loss Cost Multiplier Definition:

What is a loss cost multiplier (LCM)? The two most important factors in calculating manual insurance rates are the loss costs, and the loss cost multipliers. Loss costs reflects the medical losses caused by a claim (Medical care, lost wages, prescriptions, etc.), while the loss cost multiplier reflects the overhead cost for that claim.

Loss costs are established as an industry average by the National Council on Compensation Insurance (NCCI) for most states. However, loss costs multipliers are established by each individual insurance company. Insurance company’s need to calculate their own unique overhead expense (LCM) for workers compensation claims. Some of these costs include salaries of workers, rent, utilities, software, etc.

Loss Cost Multiplier Formula

Below is the formula that insurance companies use to calculate their unique base rate for each of their class code coverages:

Rate = Loss Cost (Published by NCCI) * Loss Cost Multiplier (LCM)

Example: If an insurance company (A) has a loss cost multiplier of 1.250 while another insurance company (B) has a loss cost multiplier of 1.500, the class code for insurance company B will cost 20 percent more than company A.

Lets assume that NCCI calculated a base loss cost for a carpentry class code at 5.62, and the business has an annual payroll of $60,000:

Insurance company A would charge 5.62 X 1.250 = 7.025 X 600 (per $100 of payroll) = $4,215 (base premium) Company B would charge 5.62 X 1.500 = 8.430 X 600 (per $100 of payroll) = $5,058 (base premium)

Be aware that there are several other factors that may be applied to the manual rates, such as experience modifications, prior to estimating the actual policy premium. 

Where to find loss costs by state:

ISO (Insurance Services Organization, Inc) is the rating organization responsible for publishing and distributing LCM by state for auto liability and general liability. You can purchase analytical data such at this by visiting their website at: https://www.verisk.com/iso.html.

NCCI (National Council on Compensation Insurance) is the rating organization responsible for publishing and distributing loss costs by state and class code. You can view this analytical data for free by visiting https://www.ncci.com/ and signing up for the Risk Workstation.

Loss Cost Multiplier list by Company:
Company Name LCM
Acadia Insurance Company 1.166
Accident Fund General Insurance Co 1.850
Accident Fund Insurance Co of America 1.480
Accident Fund National Insurance Co 1.110
Accident Insurance Company Inc. 1.350
Ace American Insurance Company 1.127
Ace Fire Underwriters Insurance Co 1.274
Ace Property & Casualty Ins Co 1.416
ACIG Insurance Company 1.250
Acuity, A Mutual Insurance Company 1.443
Addison Insurance Company 1.850
Advantage Workers Compensation Ins. Co. 1.300
AIG Assurance Co 1.151
AIG Property Casualty Co 1.649
AIU Insurance Company 0.997
Alaska National Insurance Company 1.630
Allied Eastern Indemnity Co 1.661
Allmerica Financial Benefit Insurance Company 1.050
AMCO Insurance Company 1.554
American Alternative Insurance Corp 1.568
American Automobile Insurance Company 1.656
American Business & Mercantile Ins Mutual Inc. 1.585
American Casualty Co. of Reading, Pa. 1.100
American Compensation Insurance Co 2.200
American Economy Insurance Company 1.530
American Family Home Insurance Company 1.176
American Family Mutual Insurance Co. 1.444
American Fire & Casualty Company 1.263
American Guarantee and Liability Ins. Co. 1.213
American Home Assurance Company 1.419
American Insurance Company 1.491
American Interstate Insurance Co 1.600
American Mining Insurance Company 1.496
American Modern Home Insurance Company 1.960
American National Property & Casualty Company 1.268
American Select Insurace Company 1.484
American States Insurance Company 1.694
American Zurich Insurance Company 0.999
Amerisure Insurance Company 1.330
Amerisure Mutual Insurance Company 1.770
Amerisure Partners Insurance Company 1.000
Ameritrust Insurance Corporation 1.351
AmGUARD Insurance Company 1.350
AmTrust Insurance Company of Kansas, Inc. 1.200
Arch Insurance Company 1.494
Argonaut Great Central Insurance Co. 1.083
Argonaut Insurance Company 1.037
Argonaut-Midwest Insurance Company 1.021
Associated Indemnity Corporation 1.904
Assurance Company of America 1.803
Atlantic Specialty Insurance Company 1.100
Auto Owners Insurance Co 2.020
Bankers Standard Fire & Marine Insurance Co 1.450
Bankers Standard Insurance Co 1.841
Bearing Midwest Cas Co 1.385
Benchmark Insurance Co 1.533
Berkley National Insurance Company 1.050
Berkley Regional Insurance Company 1.820
Berkshire Hathaway Homesite Insurance Co. 1.540
Bituminous Casualty Corporation 1.636
Bituminous Fire & Marine Insurance Co. 1.391
Bloomington Compensation Insurance Co 1.150
Brotherhood Mutual Insurance Company 1.342
California Insurance Company 1.414
Capitol Indemnity Corporation 1.458
Carolina Casualty Insurance Co 1.600
CastlePoint National Insurance Company 1.450
Charter Oak Fire Insurance Company 1.305
Cherokee Insurance Company 1.380
Chubb Indemnity Insurance Company 1.379
Chubb National Insurance Company 1.654
Church Mutual Insurance Company 1.541
Cincinnati Casualty Company 1.387
Cincinnati Indemnity Company 1.540
Cincinnati Insurance Company 1.253
Citizens Insurance Co of America 1.320
Columbia National Insurance Company 1.660
Commerce & Industry Insurance Company 1.764
Companion Commercial Insurance Company 1.294
Companion Property and Casualty Insurance Co. 1.445
Continental Casualty Company 1.750
Continental Indemnity Company 1.414
Continental Insurance Company 0.800
Continental Western Ins. Co. 1.787
Crum & Forster Indemnity Co. 1.789
Dakota Truck Underwriters 1.500
Dallas National Insurance Co. 1.515
Deerfield Insurance Company 1.350
Depositors Insurance Company 1.337
Diamond State Insurance Co 1.520
Discover Property & Casualty Insurance Co. 1.044
Eastern Advantage Assurance Co 1.264
Eastern Alliance Insurance Co 1.510
EastGUARD Insurance Company 1.200
Electric Insurance Co 1.059
EMC Property & Casualty Company 1.120
EMCASCO Insurance Company 1.596
Employers Assurance Company 1.350
Employers’ Fire Insurance Company 1.450
Employers Insurance Co of Wausau 1.983
Employers Mutual Casualty Co 1.881
Employers Preferred Insurance Co 1.150
Employers Security Insurance Company 1.280
Everest National Insurance Company 1.475
Farmers Insurance Exchange 1.851
Farmington Casualty Company 0.914
Farmland Mutual Insurance Company 1.489
FCCI Insurance Company 1.223
Federal Insurance Company 1.838
Federated Mutual Insurance Company 1.331
Federated Rural Electrical Insurance Exchange 1.180
Federated Service Insurance Company 1.205
Fidelity and Guaranty Ins. Company 0.914
Fidelity and Guaranty Ins. Underwriters 1.305
Fireman’s Fund Insurance Company 1.325
Firemens Insurance Co of Washington DC 1.554
First Dakota Indemnity Co. 1.310
First Liberty Insurance Corp. 1.689
First National Insurance Co of America 1.727
First Nonprofit Insurance Company 1.689
FirstComp Insurance Company 1.386
Florists Mutual Insurance Company 1.417
Foremost Insurance Company 1.322
Foremost Property & Casualty Insurance Company 1.984
Foremost Signature Insurance Company 1.653
Frank Winston Crum Insurance, Inc. 1.400
General Casualty Company of Wisconsin 1.625
General Casualty Insurance Company 1.820
General Insurance Company of America 1.858
Granite State Ins. Co. 1.918
Great American Alliance Insurance Company 1.430
Great American Assurance Co. 1.660
Great American Insurance Company 1.360
Great American Insurance Company of NY 1.510
Great American Spirit Insurance Company 1.510
Great Divide Insurance Company 1.370
Great Northern Insurance Company 1.746
Great West Casualty Company 1.509
Greenwich Insurance Co 1.600
Grinnell Mutual Reinsurance Company 1.350
Guarantee Insurance Company 1.542
GuideOne Elite Insurance Co 1.102
GuideOne Mutual Insurance Co 1.350
Hanover American Insurance Co 1.170
Hanover Insurance Company 1.650
Harco National Insurance Co 1.500
Harleysville Ins Co 1.520
Hartford Accident and Indemnity Co. 1.049
Hartford Casualty Insurance Company 1.328
Hartford Fire Insurance Company 1.258
Hartford Insurance Co of the Midwest 1.538
Hartford Underwriters Insurance Co. 1.398
Hawkeye-Security Insurance Co. 1.827
HDI-Gerling Ins Co 1.260
Home-Owners Insurance Co. 1.540
Horizon Midwest Casualty Company 1.055
Illinois Casualty Co 1.650
Illinois National Ins. Co. 1.534
Imperium Insurance Company 1.431
Indemnity Insurance Co of North America 0.915
Insurance Company of North America 1.450
Insurance Company of the St. of PA 1.534
Insurance Company of the West 1.450
Liberty Insurance Corporation 1.249
Liberty Mutual Fire Insurance Co. 1.469
Liberty Mutual Insurance Company 1.983
LM Insurance Corporation 1.028
Lumbermen’s Underwriting Alliance 1.739
Manufacturers Alliance Insurance Company 1.500
Markel Insurance Company 1.386
Maryland Casualty Company 1.984
Massachusetts Bay Insurance Company 1.490
MEMIC Indemnity Company (Maine) 1.500
Meridian Security Insurance Co 1.290
Michigan Millers’ Mutual Insurance Co 1.493
Mid-Century Insurance Company 1.184
Midwest Builders Casualty Mutual Company 1.135
Midwest Employers Casualty Co 1.250
Midwest Family Mutual Insurance Company 1.400
Midwest Insurance Company 1.250
Midwestern Indemnity Company 1.549
Milwaukee Casualty Insurance Company 1.600
Missouri Employers Mutual Insurance Co 1.547
Mitsui Sumitomo Insurance Company of America 1.408
Mitsui Sumitomo Insurance USA, Inc. 1.620
Monroe Guaranty Insurance Company 1.529
National American Insurance Company 1.565
National Casualty Company 1.495
National Fire Insurance Co of Hartford 1.500
National Interstate Insurance Company 1.495
National Liability & Fire Insurance Co 1.350
National Surety Corporation 1.408
National Trust Insurance Company 0.920
National Union Fire Ins. Co. of Pittsburgh 1.534
Nationwide Agribusiness Insurance Co. 1.295
Nationwide Mutual Insurance Company 1.807
Netherlands Insurance Company 1.294
New Hampshire Ins. Co. 1.304
New York Marine and General Insurance Company 1.429
Nipponkoa Insurance Company 1.305
NorGUARD Insurance Company 1.900
North American Elite Insurance Co. 1.702
North Pointe Insurance Company 1.265
North River Insurance Company 1.267
Northern Insurance Co of New York 1.379
Nova Casualty Company 1.470
Oak River Insurance Co 1.400
OBI National Insurance Company 1.450
Ohio Casualty Insurance Company 1.854
Ohio Security Insurance Co 1.400
Old Republic General Insurance Co. 1.440
Old Republic Insurance Company 1.450
Onebeacon America Insurance Co. 1.227
Onebeacon Insurance Co. 1.100
Owners Insurance Co 1.710
Pacific Employers Insurance Company 1.628
Pacific Indemnity Company 1.562
Peerless Indemnity Insurance Company 1.137
Peerless Insurance Company 2.068
Penn Millers Insurance Company 1.810
Pennsylvania Manufacturers Indemnity Company 1.174
Pennsylvania Mfgs’ Assoc Ins Co 1.304
Pennsylvania National Mutual Casualty Ins. 1.209
Pharmacists Mutual Insurance Co 1.369
Phoenix Insurance Company 1.762
Plaza Insurance Company 1.610
Praetorian Insurance Co 1.445
Preferred Professional Insurance Company 1.3316
Premier Group Insurance 1.500
Preserver Insurance Company 1.650
Property and Casualty Ins Co of Hartford 1.817
Protective Insurance Company 1.507
QBE Insurance Corporation 1.625
Regent Insurance Company 1.430
Republic Indemnity Co of America 1.250
Republic Indemnity Co of California 1.450
Riverport Insurance Company 1.400
RLI Insurance Company 0.967
Rockford Mutual Insurance Company 1.731
Rockwood Casualty Insurance Co 1.410
Safety First Insurance Company 1.330
Safety National Casualty Corp 1.190
Sagamore Insurance Co 1.439
Samsung Fire and Marine Insurance Co, Ltd USB 1.397
Savers Property & Casualty Insurance Co 1.381
Sea Bright Insurance Co 1.359
SECURA Supreme Insurance Company 1.090
Secura Insurance A Mutual Company 1.450
Security National Insurance Company 1.050
Selective Insurance Co of America 1.107
Selective Insurance Co of the South Carolina 1.413
Selective Insurance Co of the Southeast 1.702
Sentinel Insurance Co Ltd 1.188
Sentry Casualty Insurance Company 1.224
Sentry Insurance A Mutual Company 1.203
Sentry Select Insurance Company 1.563
SFM Mutual Insurance Company 1.410
Sompo Japan Insurance Company of America 1.450
Southern Insurance Company 1.250
SPARTA Insurance Company 1.501
Standard Fire Insurance Company 1.044
Starr Indemnity & Liability Company 1.304
Star Insurance Company 1.535
StarNet Insurance Company 1.310
State Automobile Mutual Insurance Co. 1.850
State Automobile Property & Casualty Ins Co 1.590
State Farm Fire and Casualty Company 1.826
State National Insurance Company Inc. 1.453
Stonewood National Insurance Company 1.550
Stonington Insurance Company 0.925
Sunz Insurance Company 1.540
Synergy Insurance Company 1.510
T.H.E. Insurance Company 1.400
Technology Insurance Company 1.366
TNUS Insurance Company 1.252
Tokio Marine America Insurance Company 1.821
Tokio Marine and Nichido Fire Ins Co Ltd 1.821
Tower Insurance Company of NY 1.350
Tower National Insurance Company 1.233
Trans Pacific Insurance Company 1.493
Transguard Insurance Company of America, Inc. 1.600
Transportation Insurance Company 1.600
Travelers Casualty and Surety Company 1.305
Travelers Casualty Insurance Co of America 0.783
Travelers Indemnity Co. of America 1.175
Travelers Indemnity Co. of Connecticut 1.567
Travelers Indemnity Company 1.436
Travelers Property Casualty Co of America 1.305
Triangle Insurance Company 1.317
Tri-State Ins Co of Minnesota 1.400
Triumph Casualty Company 2.100
Truck Insurance Exchange 1.480
Trumbull Insurance Company 0.839
Twin City Fire Insurance Company 1.398
Union Insurance Company 1.399
Union Insurance Company of Providence 1.085
United Fire and Casualty Company 1.170
United States Fidelity and Guaranty Co. 1.175
United States Fire Insurance Company 1.491
United Wisconsin Insurance Co 1.550
Utah Business Insurace Company 1.462
Utica Mutual Ins. Co. 1.589
Valley Forge Insurance Company 1.250
Vanliner Insurance Company 1.694
Vigilant Insurance Company 1.838
Wausau Business Insurance Company 1.028
Wausau Underwriters Insurance Company 1.396
Wesco Insurance Company 1.480
West American Insurance Company 1.569
West Bend Mutual Insurance Company 1.510
Westchester Fire Ins Co 1.450
Westfield Insurance Co 1.290
Westfield National Insurance Company 1.097
Work First Casualty Company 1.545
XL Insurance America, Inc. 1.067
XL Specialty Insurance Company 1.333
Zenith Insurance Co 1.380
Zurich American Ins. Co. of Illinois 1.712
Zurich American Insurance Company 1.427

You can find this list periodically updated by several state insurance websites, such as:

Loss Cost Multiplier