The manual premiums for workers' compensation are based on what factor?

The manual premiums for workers' compensation are primarily based on the job description of the employees. This means that the nature of the work employees are engaged in directly influences the risk associated with that work and thus the premium calculated. Different jobs have different risk levels; for instance, employees in construction generally face higher risks than those in an office environment. Insurance companies assess these job classifications to determine the probability of work-related injuries occurring, which is crucial in calculating the appropriate premium.

While factors such as years of experience, the location of the workplace, and the number of employees may influence risk and insurance costs in broader terms, they are secondary to the specific job description, which is the primary determinant in the manual premium rates. Understanding this connection between job classification and risk is key for workers' compensation adjusters.