Maine Bureau of Insurance Rate Calculator – Cost Calculator

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Maine Workers' Compensation Premium Estimator

Calculate estimated annual premiums based on Maine Bureau of Insurance Loss Costs and carrier multipliers.

Total Annual Payroll ($)

Bureau Advisory Loss Cost (per $100)

Carrier Loss Cost Multiplier (LCM)

Experience Modification Factor (e-Mod)

Estimation Results

Manual Rate (per $100): 0.00

Modified Rate: 0.00

Estimated Annual Premium: $0.00

Understanding Maine Insurance Rates

In the state of Maine, the Bureau of Insurance regulates the workers' compensation market through a system of "Loss Costs." Unlike states that set a fixed rate, Maine allows insurance carriers to file their own Loss Cost Multipliers (LCMs), creating a competitive marketplace for business owners.

Key Components of the Calculation

Annual Payroll: The total gross wages paid to employees within a specific classification code. Premium is calculated per $100 of this payroll.
Advisory Loss Cost: This is the portion of the rate intended to cover the cost of claims and loss adjustment expenses. The National Council on Compensation Insurance (NCCI) submits these to the Maine Bureau of Insurance for approval.
Loss Cost Multiplier (LCM): This is a factor used by individual insurance companies to cover their operating expenses, taxes, and profit. For example, if the Loss Cost is 1.00 and the carrier's LCM is 1.25, the actual rate charged is $1.25 per $100 of payroll.
Experience Modification Factor (e-Mod): Also known as the "Mod," this factor adjusts your premium based on your company's actual loss history compared to the industry average. A Mod of 1.0 is average; below 1.0 is a credit (good), and above 1.0 is a debit (poor).

Example Calculation

Suppose a Maine logging company has a payroll of $100,000. The NCCI Loss Cost for their class code is 5.00. Their chosen insurance carrier has an LCM of 1.30, and the company has been safe, resulting in an e-Mod of 0.90.

1. Manual Rate: 5.00 (Loss Cost) x 1.30 (LCM) = $6.50 per $100.
2. Modified Rate: 6.50 x 0.90 (e-Mod) = $5.85.
3. Total Premium: ($100,000 / 100) x $5.85 = $5,850 per year.

Regulatory Oversight

The Maine Bureau of Insurance ensures that rates are not excessive, inadequate, or unfairly discriminatory. Businesses are encouraged to shop around, as the LCM can vary significantly between carriers like MEMIC, Travelers, or Liberty Mutual, even for the same class of work.