Home > Glossary

Expense Constant

Expense Constant


Expense Constant — a fixed, flat expense charge applied to every workers compensation policy in states using advisory rates. The charge applies in addition to the premium developed for that policy and recognizes that some of the administrative costs associated with writing a workers compensation policy do not vary with the amount of premium and should, therefore, not be included in the factors that are used to develop rates.

Related Products

User ID: Subscriber Status:Free