CALCULATING PREMIUM

Here are three criteria which Stonetrust uses to determine premium:

1. Your payroll
   
2. Type of business or business classification
   
3. Your experience modifier (if you qualify for one)

The first element considered is the payroll. Payroll amounts determine the compensation an insurer may have to pay in the event of a claim.  The second element is the business classification assigned to you by NCCI, the National Council on Compensation Insurance. Your classification will determine the rate you pay; rates vary according to classifications as some classifications are riskier than others. The total payroll for each classification is multiplied by the rate for that classification (rate per $100 payroll) to determine the estimated premium.

The last element used to calculate premium is the experience modifier. Your experience modifier is a reflection of your company's individual loss experience compared to the experience of all other companies with similar operations.  If your modifier is higher than the median, you will pay more in premiums; if it is lower, you will pay less. For more information on experience modifiers, see the “Experience Modifiers” section.

While these three elements are fundamental to determining premiums, other factors can be used as well.  Stonetrust may apply discounts to policy premiums if acceptable terms are satisfied.