Glossary

Schedule rating

An underwriter's credits or debits to manual premium for risk traits that manual rates miss, such as premises condition, safety program or management quality.

Also called: schedule credit, schedule debit, schedule rating plan, scheduled rating

Manual rates treat every business in a class code alike. Schedule rating lets the underwriter move the premium down (a credit) or up (a debit) for features of this particular account that neither the class rate nor the experience mod captures. The usual categories are premises, such as condition and housekeeping; equipment and safety devices; management, including commitment to safety and cooperation with the insurer; and employees, covering selection, training and supervision. The insurer files its plan with the state.

Each state sets its own overall cap, and many allow 25% either way for liability and property lines, with some lower for workers' compensation. Say a base premium is $20,000. The underwriter gives a 10% credit for a documented safety program and a 4% debit for poor housekeeping at a second site. The net is a 6% credit, so the premium becomes $20,000 × 0.94 = $18,800 (a hypothetical case).

Unlike the experience mod, which is formula-driven from loss history, schedule rating is judgment. That cuts both ways: credits can be earned by documenting improvements and handing loss control reports to the underwriter, but they can also be withdrawn at renewal, which is a common and often unexplained reason a premium rises. Ask what credits and debits are applied and why.

The guide on how commercial insurance premiums are calculated shows where schedule rating sits in the pricing sequence, and why your business insurance premium went up covers renewal changes. The experience modification rate entry explains the formula-based adjustment.

Last reviewed October 10, 2026

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Related terms

Experience modification rate (EMR) A multiplier on workers' compensation premium comparing an employer's actual claim losses with the losses expected for its industry and size. Retrospective rating A rating plan that sets the final premium after the policy ends from the insured's actual losses in that period, within a minimum and a maximum. Class code The numeric code that classifies a business's operations for rating, setting the workers' compensation rate per $100 of payroll. Underwriting How an insurer selects, prices and sets terms for risks, and the profit or loss it earns on that business before investment income. Loss control The inspections, safety programs and physical improvements that a business and its insurer use to make claims less frequent and less severe.

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Related en español

Cómo se calcula la prima de compensación laboral Nómina, tasas por código de clase, factor de experiencia, créditos, descuento de prima y auditoría, paso a paso y con un ejemplo hipotético resuelto. ¿Cuánto cuesta el seguro para negocios y de qué depende el precio? No hay un promedio nacional confiable. El precio depende de la clase, el tamaño, la ubicación, los límites, los siniestros y el mercado. Datos de 2026.