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:

Workers Compensation Loss Cost Multiplier LCM

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: http://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 NameLCM
Acadia Insurance Company1.166
Accident Fund General Insurance Co1.850
Accident Fund Insurance Co of America1.480
Accident Fund National Insurance Co1.110
Accident Insurance Company Inc.1.350
Ace American Insurance Company1.127
Ace Fire Underwriters Insurance Co1.274
Ace Property & Casualty Ins Co1.416
ACIG Insurance Company1.250
Acuity, A Mutual Insurance Company1.443
Addison Insurance Company1.850
Advantage Workers Compensation Ins. Co.1.300
AIG Assurance Co1.151
AIG Property Casualty Co1.649
AIU Insurance Company0.997
Alaska National Insurance Company1.630
Allied Eastern Indemnity Co1.661
Allmerica Financial Benefit Insurance Company1.050
AMCO Insurance Company1.554
American Alternative Insurance Corp1.568
American Automobile Insurance Company1.656
American Business & Mercantile Ins Mutual Inc.1.585
American Casualty Co. of Reading, Pa.1.100
American Compensation Insurance Co2.200
American Economy Insurance Company1.530
American Family Home Insurance Company1.176
American Family Mutual Insurance Co.1.444
American Fire & Casualty Company1.263
American Guarantee and Liability Ins. Co.1.213
American Home Assurance Company1.419
American Insurance Company1.491
American Interstate Insurance Co1.600
American Mining Insurance Company1.496
American Modern Home Insurance Company1.960
American National Property & Casualty Company1.268
American Select Insurace Company1.484
American States Insurance Company1.694
American Zurich Insurance Company0.999
Amerisure Insurance Company1.330
Amerisure Mutual Insurance Company1.770
Amerisure Partners Insurance Company1.000
Ameritrust Insurance Corporation1.351
AmGUARD Insurance Company1.350
AmTrust Insurance Company of Kansas, Inc.1.200
Arch Insurance Company1.494
Argonaut Great Central Insurance Co.1.083
Argonaut Insurance Company1.037
Argonaut-Midwest Insurance Company1.021
Associated Indemnity Corporation1.904
Assurance Company of America1.803
Atlantic Specialty Insurance Company1.100
Auto Owners Insurance Co2.020
Bankers Standard Fire & Marine Insurance Co1.450
Bankers Standard Insurance Co1.841
Bearing Midwest Cas Co1.385
Benchmark Insurance Co1.533
Berkley National Insurance Company1.050
Berkley Regional Insurance Company1.820
Berkshire Hathaway Homesite Insurance Co.1.540
Bituminous Casualty Corporation1.636
Bituminous Fire & Marine Insurance Co.1.391
Bloomington Compensation Insurance Co1.150
Brotherhood Mutual Insurance Company1.342
California Insurance Company1.414
Capitol Indemnity Corporation1.458
Carolina Casualty Insurance Co1.600
CastlePoint National Insurance Company1.450
Charter Oak Fire Insurance Company1.305
Cherokee Insurance Company1.380
Chubb Indemnity Insurance Company1.379
Chubb National Insurance Company1.654
Church Mutual Insurance Company1.541
Cincinnati Casualty Company1.387
Cincinnati Indemnity Company1.540
Cincinnati Insurance Company1.253
Citizens Insurance Co of America1.320
Columbia National Insurance Company1.660
Commerce & Industry Insurance Company1.764
Companion Commercial Insurance Company1.294
Companion Property and Casualty Insurance Co.1.445
Continental Casualty Company1.750
Continental Indemnity Company1.414
Continental Insurance Company0.800
Continental Western Ins. Co.1.787
Crum & Forster Indemnity Co.1.789
Dakota Truck Underwriters1.500
Dallas National Insurance Co.1.515
Deerfield Insurance Company1.350
Depositors Insurance Company1.337
Diamond State Insurance Co1.520
Discover Property & Casualty Insurance Co.1.044
Eastern Advantage Assurance Co1.264
Eastern Alliance Insurance Co1.510
EastGUARD Insurance Company1.200
Electric Insurance Co1.059
EMC Property & Casualty Company1.120
EMCASCO Insurance Company1.596
Employers Assurance Company1.350
Employers’ Fire Insurance Company1.450
Employers Insurance Co of Wausau1.983
Employers Mutual Casualty Co1.881
Employers Preferred Insurance Co1.150
Employers Security Insurance Company1.280
Everest National Insurance Company1.475
Farmers Insurance Exchange1.851
Farmington Casualty Company0.914
Farmland Mutual Insurance Company1.489
FCCI Insurance Company1.223
Federal Insurance Company1.838
Federated Mutual Insurance Company1.331
Federated Rural Electrical Insurance Exchange1.180
Federated Service Insurance Company1.205
Fidelity and Guaranty Ins. Company0.914
Fidelity and Guaranty Ins. Underwriters1.305
Fireman’s Fund Insurance Company1.325
Firemens Insurance Co of Washington DC1.554
First Dakota Indemnity Co.1.310
First Liberty Insurance Corp.1.689
First National Insurance Co of America1.727
First Nonprofit Insurance Company1.689
FirstComp Insurance Company1.386
Florists Mutual Insurance Company1.417
Foremost Insurance Company1.322
Foremost Property & Casualty Insurance Company1.984
Foremost Signature Insurance Company1.653
Frank Winston Crum Insurance, Inc.1.400
General Casualty Company of Wisconsin1.625
General Casualty Insurance Company1.820
General Insurance Company of America1.858
Granite State Ins. Co.1.918
Great American Alliance Insurance Company1.430
Great American Assurance Co.1.660
Great American Insurance Company1.360
Great American Insurance Company of NY1.510
Great American Spirit Insurance Company1.510
Great Divide Insurance Company1.370
Great Northern Insurance Company1.746
Great West Casualty Company1.509
Greenwich Insurance Co1.600
Grinnell Mutual Reinsurance Company1.350
Guarantee Insurance Company1.542
GuideOne Elite Insurance Co1.102
GuideOne Mutual Insurance Co1.350
Hanover American Insurance Co1.170
Hanover Insurance Company1.650
Harco National Insurance Co1.500
Harleysville Ins Co1.520
Hartford Accident and Indemnity Co.1.049
Hartford Casualty Insurance Company1.328
Hartford Fire Insurance Company1.258
Hartford Insurance Co of the Midwest1.538
Hartford Underwriters Insurance Co.1.398
Hawkeye-Security Insurance Co.1.827
HDI-Gerling Ins Co1.260
Home-Owners Insurance Co.1.540
Horizon Midwest Casualty Company1.055
Illinois Casualty Co1.650
Illinois National Ins. Co.1.534
Imperium Insurance Company1.431
Indemnity Insurance Co of North America0.915
Insurance Company of North America1.450
Insurance Company of the St. of PA1.534
Insurance Company of the West1.450
Liberty Insurance Corporation1.249
Liberty Mutual Fire Insurance Co.1.469
Liberty Mutual Insurance Company1.983
LM Insurance Corporation1.028
Lumbermen’s Underwriting Alliance1.739
Manufacturers Alliance Insurance Company1.500
Markel Insurance Company1.386
Maryland Casualty Company1.984
Massachusetts Bay Insurance Company1.490
MEMIC Indemnity Company (Maine)1.500
Meridian Security Insurance Co1.290
Michigan Millers’ Mutual Insurance Co1.493
Mid-Century Insurance Company1.184
Midwest Builders Casualty Mutual Company1.135
Midwest Employers Casualty Co1.250
Midwest Family Mutual Insurance Company1.400
Midwest Insurance Company1.250
Midwestern Indemnity Company1.549
Milwaukee Casualty Insurance Company1.600
Missouri Employers Mutual Insurance Co1.547
Mitsui Sumitomo Insurance Company of America1.408
Mitsui Sumitomo Insurance USA, Inc.1.620
Monroe Guaranty Insurance Company1.529
National American Insurance Company1.565
National Casualty Company1.495
National Fire Insurance Co of Hartford1.500
National Interstate Insurance Company1.495
National Liability & Fire Insurance Co1.350
National Surety Corporation1.408
National Trust Insurance Company0.920
National Union Fire Ins. Co. of Pittsburgh1.534
Nationwide Agribusiness Insurance Co.1.295
Nationwide Mutual Insurance Company1.807
Netherlands Insurance Company1.294
New Hampshire Ins. Co.1.304
New York Marine and General Insurance Company1.429
Nipponkoa Insurance Company1.305
NorGUARD Insurance Company1.900
North American Elite Insurance Co.1.702
North Pointe Insurance Company1.265
North River Insurance Company1.267
Northern Insurance Co of New York1.379
Nova Casualty Company1.470
Oak River Insurance Co1.400
OBI National Insurance Company1.450
Ohio Casualty Insurance Company1.854
Ohio Security Insurance Co1.400
Old Republic General Insurance Co.1.440
Old Republic Insurance Company1.450
Onebeacon America Insurance Co.1.227
Onebeacon Insurance Co.1.100
Owners Insurance Co1.710
Pacific Employers Insurance Company1.628
Pacific Indemnity Company1.562
Peerless Indemnity Insurance Company1.137
Peerless Insurance Company2.068
Penn Millers Insurance Company1.810
Pennsylvania Manufacturers Indemnity Company1.174
Pennsylvania Mfgs’ Assoc Ins Co1.304
Pennsylvania National Mutual Casualty Ins.1.209
Pharmacists Mutual Insurance Co1.369
Phoenix Insurance Company1.762
Plaza Insurance Company1.610
Praetorian Insurance Co1.445
Preferred Professional Insurance Company1.3316
Premier Group Insurance1.500
Preserver Insurance Company1.650
Property and Casualty Ins Co of Hartford1.817
Protective Insurance Company1.507
QBE Insurance Corporation1.625
Regent Insurance Company1.430
Republic Indemnity Co of America1.250
Republic Indemnity Co of California1.450
Riverport Insurance Company1.400
RLI Insurance Company0.967
Rockford Mutual Insurance Company1.731
Rockwood Casualty Insurance Co1.410
Safety First Insurance Company1.330
Safety National Casualty Corp1.190
Sagamore Insurance Co1.439
Samsung Fire and Marine Insurance Co, Ltd USB1.397
Savers Property & Casualty Insurance Co1.381
Sea Bright Insurance Co1.359
SECURA Supreme Insurance Company1.090
Secura Insurance A Mutual Company1.450
Security National Insurance Company1.050
Selective Insurance Co of America1.107
Selective Insurance Co of the South Carolina1.413
Selective Insurance Co of the Southeast1.702
Sentinel Insurance Co Ltd1.188
Sentry Casualty Insurance Company1.224
Sentry Insurance A Mutual Company1.203
Sentry Select Insurance Company1.563
SFM Mutual Insurance Company1.410
Sompo Japan Insurance Company of America1.450
Southern Insurance Company1.250
SPARTA Insurance Company1.501
Standard Fire Insurance Company1.044
Starr Indemnity & Liability Company1.304
Star Insurance Company1.535
StarNet Insurance Company1.310
State Automobile Mutual Insurance Co.1.850
State Automobile Property & Casualty Ins Co1.590
State Farm Fire and Casualty Company1.826
State National Insurance Company Inc.1.453
Stonewood National Insurance Company1.550
Stonington Insurance Company0.925
Sunz Insurance Company1.540
Synergy Insurance Company1.510
T.H.E. Insurance Company1.400
Technology Insurance Company1.366
TNUS Insurance Company1.252
Tokio Marine America Insurance Company1.821
Tokio Marine and Nichido Fire Ins Co Ltd1.821
Tower Insurance Company of NY1.350
Tower National Insurance Company1.233
Trans Pacific Insurance Company1.493
Transguard Insurance Company of America, Inc.1.600
Transportation Insurance Company1.600
Travelers Casualty and Surety Company1.305
Travelers Casualty Insurance Co of America0.783
Travelers Indemnity Co. of America1.175
Travelers Indemnity Co. of Connecticut1.567
Travelers Indemnity Company1.436
Travelers Property Casualty Co of America1.305
Triangle Insurance Company1.317
Tri-State Ins Co of Minnesota1.400
Triumph Casualty Company2.100
Truck Insurance Exchange1.480
Trumbull Insurance Company0.839
Twin City Fire Insurance Company1.398
Union Insurance Company1.399
Union Insurance Company of Providence1.085
United Fire and Casualty Company1.170
United States Fidelity and Guaranty Co.1.175
United States Fire Insurance Company1.491
United Wisconsin Insurance Co1.550
Utah Business Insurace Company1.462
Utica Mutual Ins. Co.1.589
Valley Forge Insurance Company1.250
Vanliner Insurance Company1.694
Vigilant Insurance Company1.838
Wausau Business Insurance Company1.028
Wausau Underwriters Insurance Company1.396
Wesco Insurance Company1.480
West American Insurance Company1.569
West Bend Mutual Insurance Company1.510
Westchester Fire Ins Co1.450
Westfield Insurance Co1.290
Westfield National Insurance Company1.097
Work First Casualty Company1.545
XL Insurance America, Inc.1.067
XL Specialty Insurance Company1.333
Zenith Insurance Co1.380
Zurich American Ins. Co. of Illinois1.712
Zurich American Insurance Company1.427

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





Loss Cost Multiplier