As a general contractor or artisan contractor, having proper insurance coverage is crucial to protecting your business. Workers’ compensation insurance for contractors specifically helps cover costs if an employee is injured on the job. Without adequate coverage, a single employee injury could devastate your company’s finances.

This comprehensive guide will explain everything general contractors and artisan contractors need to know about securing the right workers’ compensation policy. We’ll cover key topics in depth like:

  • What is Workers’ Compensation Insurance?
  • Why Contractors Need Workers’ Comp
  • What Does Workers’ Comp Insurance Cover?
  • Exclusions to Be Aware Of
  • How Much Does Workers’ Comp Cost for General Contractors & Artisans?
  • Strategies to Reduce Your Workers’ Comp Premiums
  • How To Get Tailored Workers’ Comp Coverage

If you’re interested in more detailed resources for specific artisan trades, focusing on workers’ compensation, we’ve developed the following guides:

Read on for a detailed overview of how workers’ compensation insurance works and why general contractors and artisan contractors need appropriate protection.

What is Workers’ Compensation Insurance?

Workers’ compensation insurance provides medical, rehabilitation, and wage replacement benefits to employees who sustain injuries or illnesses arising out of the course of their work.

As a general contractor or artisan contractor, your employees may be injured on the job in a variety of ways:

  • Back strains, hernias, and musculoskeletal injuries from lifting heavy materials
  • Lacerations, amputations, or embedded debris in hands/fingers from power tools
  • Respiratory issues from dusts, fumes, or chemicals
  • Loss of eyesight or eye injuries from flying debris
  • Concussions or fractures from falls or falling objects
  • Crushed or broken bones from unsecured heavy loads or equipment issues
  • Electrical shocks from exposed wiring
  • Hearing loss or tinnitus from constant loud noise

Even with safety precautions, construction jobs carry inherent risks daily. The financial costs of these employee injuries can easily climb into the tens or hundreds of thousands when medical bills and lost wages add up.

Having proper workers’ compensation insurance coverage is the only way to cover these costs without financial disaster. It helps keep your business afloat if an on-the-job accident occurs by paying for the injury. This insurance is just as crucial as general liability coverage for general contractors and artisans to have ironclad protection.

Moreover, workers’ compensation laws are determined on a state-by-state basis but have some common elements:

  • No-fault coverage – Benefits must be paid regardless of who was at fault for an injury.
  • Exclusive remedy – Prevents separate lawsuits against the employer. Workers’ comp is the exclusive remedy.
  • Mandatory coverage – Nearly every state requires coverage with few exceptions. Failing to carry this insurance leads to significant fines.
  • Employer-financed – Employers foot the bill for all premiums. Employees are not required to contribute.

As the employer, it is your responsibility to purchase adequate workers’ compensation for all your staff and maintain compliance with your state’s guidelines. Failing to do so poses tremendous financial risks to your business.

Why Do Contractors Need Workers’ Comp Insurance?

Due to the physical nature of construction work, employee injuries are common. Situations requiring workers’ compensation benefits could include:

  • Back strains, hernias, and musculoskeletal injuries from lifting drywall, lumber, tools, and heavy materials.
  • Lacerations, amputations, or embedded debris in hands/fingers from power saws, box cutters, nails, and other sharp objects.
  • Respiratory issues like asthma attacks triggered by dusts, fumes from chemicals or finishes.
  • Loss of eyesight or eye injuries from flying debris.
  • Concussions or fractures from falls off ladders, scaffolding, or unfinished upper floors.
  • Crushed or broken bones/limbs from unsecured heavy loads tipping over or equipment malfunctioning.
  • Electrical shocks from exposed wiring when working on electrical systems.
  • Hearing loss or tinnitus from constant loud noise on job sites from heavy machinery.

Even with safety precautions, construction jobs carry inherent risks daily. The financial costs of these employee injuries can easily climb into the tens or hundreds of thousands when medical bills and lost wages add up.

Having proper workers’ compensation insurance coverage is the only way to cover these costs without financial disaster. It helps keep your business afloat if an on-the-job accident occurs by paying for the injury. This insurance is just as crucial as general liability coverage for general contractors and artisans to have ironclad protection.

Moreover, nearly every state requires general contractors and artisans to carry workers’ compensation insurance on their employees. Even in monopolistic states where coverage must be purchased through a state-run fund, construction contractors must still carry this insurance. These states include North Dakota, Ohio, Washington, and Wyoming.

All states require workers’ compensation except Texas and Oklahoma. In Texas, workers’ comp insurance is optional for contractors. However, ~90% still choose to purchase this coverage to limit liability. If not carried, employees can sue the contractor directly for injuries. In Oklahoma, workers’ comp is optional for very small employers with 1 or 2 employees, which may apply to some self-employed contractors or tiny firms. Firms with more than 2 employees must carry comp insurance in Oklahoma.

The vast majority of general contractors and artisans are required to carry workers’ compensation insurance on their staff in nearly every state. Only a small subset of solo self-employed contractors or micro firms may potentially not be required in Texas and Oklahoma depending on size. However, even in these two states coverage is still highly recommended to avoid lawsuits. Every other state mandates workers’ comp.

What Does Workers’ Comp Insurance Cover for Contractors?

Workers’ compensation insurance policies are designed to accomplish two things if an employee is hurt while working:

  1. Pay the employee’s medical bills and directly related expenses. This includes hospital fees, physical therapy, doctor visits, prescription medications, medical equipment, home health care, and any other medical costs stemming from the work injury. There are no caps or limits on the amount of medical coverage provided.
  2. Reimburse a portion of the employee’s lost wages while they recover. The specifics on wage reimbursement percentages and duration limits depend on individual state laws. Most states cover around 2/3 of the employee’s average wages up to state maximums.

Additional benefits covered may include:

  • Death benefits for surviving dependents if an employee passes away due to a workplace injury or illness. Most states provide both burial costs and wage replacement.
  • Vocational rehabilitation to help injured employees transition back to work or train for a new occupation if they cannot continue construction work due to permanent disability.
  • Mileage reimbursement for trips to doctor appointments and medical facilities.

Workers’ compensation is intended to cover all reasonable and directly related medical, rehabilitative, and wage replacement costs to help the injured employee fully recover and get back to work if possible.

It’s important to understand workers’ compensation insurance only applies to injuries occurring within the scope of employment. Key exclusions to be aware of include:

  • Injuries occurring outside of work hours or off company premises. There must be a clear connection to work duties.
  • Pre-existing health conditions that are aggravated or exacerbated by work activities. The injury itself must arise out of employment.
  • Intentionally self-inflicted injuries such as suicide attempts and self-harm activities.
  • Injuries occurring when an employee violates policy such as fighting, committing crimes, or intoxication at work.
  • Ordinary diseases of life like colds, flu, allergies etc. that are not caused solely by work duties.
  • Gradual hearing loss or repetitive motion injuries that occur slowly over time. These may be disputed by insurers.

Any gray areas or disputes will be evaluated on a case-by-case basis. But in general, workers’ compensation insurance covers only identifiable injuries resulting from the employee’s job duties. Other key coverages like health insurance help fill gaps that workers’ comp does not address.

How Much Does Workers’ Comp Cost for Contractors?

Workers’ compensation insurance costs vary greatly by state since each state governs the specifics of coverage required within its borders. Rates are also driven by the classification or risk-level of the contractor’s employees.

General Contractors typically use one of the following class codes:

– Code 5606 has the lowest rate. This code is meant for people who oversee construction projects, but not the ones who are actually on the ground doing the work. According to the official manual, this code doesn’t apply to anyone directly managing the work or workers. So, if you’re a project manager and you want to be under Code 5606, you have to manage through other supervisors like forepersons, not directly with the workers or subcontractors on site. If you don’t follow this, you might get shifted to another category like Code 5645 or 5403.

– Code 5645 has a much higher rate but less than 5403. If you’re a contractor focused on small residential buildings—those with three floors or less—then Code 5645 is likely your appropriate code. It covers a wide range of construction tasks, such as building the initial frame, laying the basic flooring, installing siding, and doing the final carpentry touches. Keep in mind, this code is only for contractors whose work also includes building the main structure, like walls and support beams. If your project is more complex, like a tall apartment complex or a commercial building, then you will likely need to classify as 5403.

– Code 5403 has the highest rate due to higher risk. Code 5403 is for building projects that don’t fit under any other specific category in the Worker’s Compensation (WC) guidelines. According to these guidelines, this code is mainly used for buildings that are more than three stories high. This could be residential buildings like apartment blocks or commercial buildings like office towers. Additionally, this code includes any carpentry jobs needed for the construction, as long as they don’t fall under another specific code.

Artisan Contractors are generally classified under different codes depending on the type of construction work:

  • 5645 – Residential construction and remodeling of homes up to 3 stories. Includes rough carpentry like framing, roofing, flooring, siding as well as finish work when done by the same contractor. Not for commercial buildings.
  • 5403 – General carpentry for residential dwellings over 3 stories and all commercial structures with no height limit. Includes framework, siding, flooring, and finish work.
  • 8227 – Permanent storage yards and shop facilities maintained by contractors for equipment and material storage. For dedicated yard employees only.
  • 5437 – Specialized interior finish carpentry like cabinets, stairs, trim, molding, hardwood floors. Not intended for structural work.
  • 5474 – Exterior and interior painting contractors. Includes prep work, spraying, rolling, brushing walls.
  • 5221 – Poured concrete contractors. Work includes floors, foundations, sidewalks, driveways, curbs, and patios.
  • 5190 – Electrical contractors providing wiring services in residential and commercial settings. Includes new installs, repairs, equipment wiring.
  • 3724 – Installation and repair of miscellaneous building equipment like elevators, overhead doors, and gas pumps. Excludes electrical, plumbing, and HVAC.
  • 5183 – Plumbing contractors doing pipe connections for water, gas, steam. Includes faucet, sink, and sprinkler system installs and repairs.
  • 5537 – HVAC contractors performing installation, service, and repair of heating, ventilation, air conditioning, and refrigeration systems.
  • 5348 – Flooring contractors specializing in ceramic tile installation.
  • 5478 – Flooring contractors specializing in carpet and laminate installation.
  • 5551 – Roofing contractors doing new installs and repairs on all roof types – shingles, metal, tar, slate. Residential and commercial.
  • 6217 – Site preparation through excavation, grading, land clearing, tree removal. Includes rock and dirt moving.
  • 2702 – Logging companies removing standing timber and trees. Includes incidental stump removal.
  • 0006 – Planting and installing new trees. May include delivery.
  • 0005 – Growing and cultivating trees, plants, and shrubs. Delivery and planting also included.
  • 2802 – Manufacturing wood products like cabinets and trusses in a wood shop facility. Also covers product delivery.
  • 5606 – Administrative construction management with indirect supervision through other managers. No direct project oversight.
  • 0042 – Landscaping companies doing installation, maintenance, and repair of gardens, yards, and outdoor aesthetics.
  • 8810 – Clerical employees like bookkeepers, payroll, secretaries, and administrative assistants. Office-based support staff.

General Contractors can expect to pay between $5 – $17+ per $100 of payroll towards workers’ compensation premiums depending on class code and state. Here are some of the major factors that influence workers’ comp costs for contractors:

  • Class codes – The risk level of work performed such as concrete or electrical work.
  • Payroll size – More employees and higher payroll increases premiums.
  • Claims history – Too many past claims raises your risk profile.
  • Safety discounts – Documented safety initiatives may lower premiums.
  • Premium options – Monthly installments cost more than annual payments.

Exact workers’ compensation costs depend on these specific underwriting factors. Work with an insurance specialist to get quotes tailored to your contracting business. They will survey your employee classifications, payroll, and claims data in pricing a customized policy.

Critical Factors That Impact Contractor Workers’ Comp Premium Costs

Several interrelated variables drive the final premium costs contractors will pay for mandatory workers’ compensation policies. The major factors that determine pricing are discussed below.

Payroll is the Primary Premium Input

The estimated total annual payroll or employee remuneration is another major factor used by insurers to calculate workers’ compensation policy premiums. Premium rating rules are applied based on rates per $100 of payroll for given class code risk exposures.

For instance, a contractor may have a rate of $15 per $100 of payroll for Code 5610, and $10 per $100 of payroll for lower risk Code 5606 office work. Payroll estimates are multiplied by the rated risk to derive the premium cost.

Payroll generally reflects the total anticipated employee compensation over a 12 month policy term. Estimates typically rely on prior year payroll as a baseline, often incorporating a growth percentage. Regional differences in construction pay scales also influence payroll amounts used for rating.

Properly categorizing payroll totals across multiple risk classes is imperative to avoid overpaying premiums for higher rated activities that don’t reflect a contractor’s actual work mix. Office staff may fall under lower rate codes vs laborers facing greater physical hazard exposures.

Meticulous payroll reporting by project and employee role also ensures accurate audits required by insurers to confirm final premium costs. A 10-20% buffer may be added to payroll estimates to allow for growth surprises and prevent audit premium increases. Subcontractor payments can be excluded from payroll calculations to further optimize costs.

Base Rates per $100 of Payroll Determined by Class Codes

The National Council on Compensation Insurance (NCCI) manages a system of classification codes used by insurers to categorize employment and occupational risks for rating workers’ compensation policies. Based on extensive historical data about various industries and professions, the NCCI assigns codes reflecting the relative hazards and likelihood of injuries for different types of work.

Common NCCI class codes used for general contractor operations include:

  • 5645 – Contractor: Construction and remodeling of residential homes up to 3 stories. Includes rough carpentry like framing, roofing, flooring, siding as well as finish work when done by the same contractor. Not for commercial buildings.
  • 5403 – Contractor: Construction or erection work not otherwise classified. Includes general carpentry for residential dwellings over 3 stories and all commercial structures with no height limit. Includes framework, siding, flooring, and finish work.

These NCCI class codes group contractors with similar exposures to determine baseline rates used in premium calculations. Accurately selecting class codes encompassing all facets of a contractor’s work without overpaying for unneeded higher risk activities is crucial for optimizing workers’ comp costs.

Insurers take the class code risk rates paired with variables like payroll estimates and experience to determine portions of the premium. For instance, Code 5403 for large residential and commercial construction has a higher base rate than Code 5645. Proper classification is imperative to prevent being assigned inflated rates exceeding a contractor’s actual risk profile.

We’ll explore class code assignment specifics and potential pitfalls like restrictive interpretations later in the guide. For now, understand that NCCI codes grouping similar contractor risks are the foundation for premium determination.

Experience Modifier Rating (EMR) Determined by Claims History

The experience rating modifier is another major factor influencing premium expenses for contractors. Often abbreviated as EMR or X Mod, the experience modifier is calculated by comparing the dollar amount of an employer’s past workers’ compensation claims to average amounts for their industry and risk class.

EMR is expressed as a multiplicative rating between 0.75 and 1.25 in most states, with 1.00 representing the industry baseline. EMRs below 1.00 indicate better than expected experience, with fewer or lower cost claims than similar firms. EMRs above 1.00 reflect worse experience with higher claims frequency and costs.

The EMR directly multiplies other premium components like base rates and payroll estimates. For instance, an EMR of 0.90 would reduce a $100,000 premium by 10% to $90,000. Conversely, a 1.15 EMR would increase that premium cost by 15% to $115,000. Even small differences in EMR can greatly impact overall workers’ comp costs.

Controlling EMR over time by preventing injuries through workplace safety and effectively managing any claims is a top cost reduction strategy for contractors. An EMR exceeding 1.15 can hamper contractor competitiveness, while driving the EMR down below 1.00 yields significant bottom line savings year after year.

Here you can learn more about the process of contractors filing a worker’s compensation claim.

Workers Comp Premium Formula for Contractors

Workers’ compensation premiums for contractors derive directly from the following core formula used by insurers:

Premium = (Payroll / 100) x Base Rate x EMR

  • Payroll is estimated total annual compensation
  • Base Rate comes from the NCCI class code risk designations
  • EMR is the experience modifier based on past loss history

Higher values entered for payroll estimates, base class rates, and the experience modifier will raise overall premium expenses. However, contractors have opportunities to manage these key variables and inputs through a focus on safety, proper work classification, payroll accuracy, and effective claims management.

Now that we’ve reviewed the major components that determine pricing, let’s examine why contractor trades in particular face such high workers’ compensation costs.

Why Contractors Have Significantly Higher Workers’ Comp Premiums

Due to the hands-on nature of contracting work, contractors face many inherent occupational hazards and accident risks every day on the job. Common exposures leading to frequent injuries and workers’ compensation claims in the trades include:

  • Falls – Contractors work at height on roofs, ladders, and scaffolding. Falls often result in severe or fatal injuries.
  • Electrocution – Contact with live wires during construction can cause electric shock or burns.
  • Lacerations – Power saws, hammers, and other sharp hand tools pose laceration and amputation risks.
  • Muscle strains – Lifting heavy materials and equipment leads to back, shoulder and elbow injuries.
  • Motor vehicle crashes – Traveling to job sites leads to accident exposures.
  • Toxic hazards – Chemicals in sealants, paints, and finishes may cause eye irritation or poisoning.

These severe and frequent injury exposures mean contractor trades endure substantially higher workers’ compensation claims compared to administrative professions. As a direct result, NCCI class codes for contractors have significantly greater base rates used to calculate premiums.

For instance, the average base rate across all states for Construction Executive Supervisors Code 5606 is around $3 per $100 of payroll. But the base rate for General Construction Code 5610 is $15 per $100 of payroll – 5 times higher!

Greater injuries and compensation outlays mean far higher premium factors get applied to contractor payrolls. A constant and vigilant focus on safety programs, training, protective gear, and hazard mitigation is critical for contractor firms to help control risks and high premium costs.

Okay, now that we’ve reviewed how class codes, experience modifiers, payroll, and inherent risk drive up contractor workers’ comp costs, let’s look at how small changes in EMR can greatly impact premiums.

The Major EMR Multiplier Effect on Contractor Premium Costs

As a significant variable in the workers’ compensation premium formula, minor changes in a contractor’s experience modifier can greatly impact overall costs. For example, consider a firm with:

  • Estimated Annual Payroll: $1,000,000
  • Base Rate: $15 per $100 of payroll
  • Scenario 1: EMR of 0.85
  • Scenario 2: EMR of 1.10

Scenario 1 Premium: $15 x 0.85 x ($1,000,000 / 100) = $127,500

Scenario 2 Premium: $15 x 1.10 x ($1,000,000 / 100) = $165,000

Here a 0.25 increase in the EMR, from a favorable 0.85 to higher 1.10, results in a $37,500 rise in annual workers’ compensation premium costs. This demonstrates the sizable multiplier effect small EMR fluctuations can produce for contractor’s bottom lines.

The ability to control EMR over time through workplace injury prevention and effective post-incident claims management results in major cost savings for conscientious contractor firms.

Contractor Workers’ Compensation Premium Calculator

To estimate your potential workers’ compensation premium costs based on your contracting business’ unique parameters, use our interactive Contractor Premium Calculator:

By inputting key variables like your estimated annual payroll, employee class codes, your current or projected EMR, and growth estimates, the calculator will generate an indicative premium range you can expect based on typical rating formulas and industry benchmarks.

This allows contractors to model different payroll, EMR, and classification scenarios to understand how policy variables and risk management impact potential premium costs. Comparing the calculator’s rate estimates against actual quotes from insurance carriers can help you negotiate the optimal workers’ comp policy rate for your business.

Keep in mind projections are estimates only, and you should validate all policy details with insurance providers before purchasing coverage. But using the Contractor Premium Calculator gives you a powerful starting point to forecast and control workers’ comp costs based on your firm’s risk profile.

Comparing Workers’ Comp Rates for Contractors by State

In addition to individual risk characteristics, the state in which a contractor operates can have a major impact on workers’ compensation premium expenses. Each state regulates its own workers’ comp system with unique laws, base rates, benefit mandates, and cost drivers.

Some states have significantly higher workers’ comp premium factors across all occupations, resulting in material cost differences even among similar contractor firms. For multi-state operators, understanding and accounting for jurisdictional variables is crucial in insurance planning and cost control efforts.

Below we’ve compiled indicative cost ranges by state for contractor employees and per $100,000 in payroll, based on typical premium rates for a blend of Code 5610 and Code 5606 across the US:

Table 1 – Typical Workers’ Comp Cost per Contractor Employee

StateTypical Cost of WC per Employee
Alabama$5,216
Alaska$5,770
Arizona$4,641
Arkansas$2,053
California$3,598
Colorado$2,716
Connecticut$7,924
Delaware$4,093
Florida$4,673
Georgia$17,335
Hawaii$5,843
Idaho$4,841
Illinois$8,442
Indiana$2,335
Iowa$4,392
Kansas$4,604
Kentucky$3,843
Louisiana$6,592
Maine$4,189
Maryland$3,776
Massachusetts$4,060
Michigan$4,351
Minnesota$5,685
Mississippi$3,274
Missouri$5,788
Montana$3,935
Nebraska$3,733
Nevada$3,550
New Hampshire$4,689
New Jersey$8,441
New Mexico$5,067
New York$5,645
North Carolina$6,622
North Dakota$1,628
Ohio$2,004
Oklahoma$4,781
Oregon$2,861
Pennsylvania$4,368
Rhode Island$4,790
South Carolina$8,810
South Dakota$4,148
Tennessee$5,026
Texas$1,854
Utah$3,968
Vermont$5,334
Virginia$4,794
Washington$3,545
West Virginia$2,310
Wisconsin$5,465
Wyoming$1,619

Table 2 – Typical Workers’ Comp Cost per $100K Payroll

StateTypical Cost of WC per $100K payroll
Alabama$14,070
Alaska$9,780
Arizona$10,170
Arkansas$6,330
California$8,460
Colorado$7,400
Connecticut$17,170
Delaware$9,060
District of Columbia$7,060
Florida$12,610
Georgia$43,420
Hawaii$10,600
Idaho$12,930
Illinois$19,230
Indiana$5,560
Iowa$9,650
Kansas$10,530
Kentucky$9,810
Louisiana$17,760
Maine$10,580
Maryland$7,230
Massachusetts$6,930
Michigan$10,270
Minnesota$11,440
Mississippi$9,190
Missouri$12,480
Montana$9,850
Nebraska$9,150
Nevada$7,890
New Hampshire$9,540
New Jersey$17,090
New Mexico$12,780
New York$11,470
North Carolina$16,730
North Dakota$3,510
Ohio$4,590
Oklahoma$13,800
Oregon$6,700
Pennsylvania$9,500
Rhode Island$9,030
South Carolina$21,480
South Dakota$10,290
Tennessee$12,840
Texas$4,390
Utah$9,900
Vermont$11,500
Virginia$9,730
Washington$8,200
West Virginia$5,720
Wisconsin$13,070
Wyoming$4,310

This data reveals material cost differences between states. Premium factors in high cost states like New Jersey run nearly 3X higher than lower cost states like Indiana for similar contractors.

Understanding jurisdictional risk and regulatory variables allows contractors to incorporate geographic cost differences into their insurance planning and budgeting process. Operating across state lines requires particular attention to localized factors that impact premiums.

Now that we’ve reviewed key elements that influence workers’ comp costs for contractors, let’s examine proactive strategies contractors can employ to reduce rates and secure affordable coverage.

Expert Strategies to Lower Contractor Workers’ Comp Premiums

While some premium variables like state regulations are fixed, proactive contractors can utilize strategies to control other factors and secure affordable workers’ compensation coverage. Experts recommend considering the following tactics:

  • Implement stringent safety programs with accountability at all management and employee levels to help control workplace risks. This is the #1 long-term cost reduction strategy.
  • Maintain meticulous payroll records properly categorized by risk class, employee type, and project. Precise payroll inputs prevent overpayment.
  • Research alternative plans like self-insurance or forming an industry risk pool for larger firms to lower costs through scale.
  • Compare rates across multiple carriers when policies renew and negotiate optimal pricing through independent agents who can provide choices.
  • Contest any identified billing errors immediately to enable premium corrections and refunds. Don’t overpay due to a carrier mistake.
  • Consider group insurance plans offered through industry associations that pool risk to improve experience factors.
  • Explore dividend plans and retrospective rating options that may provide partial premium refunds for good loss performance.
  • Work with highly experienced insurance advisors or captive managers to maximize savings and avoid overpayment. Their expertise pays dividends.

Implementing even a portion of these strategies can yield substantial premium savings for diligent contractor firms while still securing mandatory and beneficial workers’ compensation protections.

Avoiding Costly Contractor Class Code Misclassifications

Some contractors may ask whether they can be classified under other construction categories with lower base rates. However, attempting to misreport employee duties or occupations constitutes fraud.

Insurers assign contractor-specific class codes like 5610 and 5606 based on the hazardous exposures and risks inherent to those trades documented over many years. During payroll audits, insurers carefully confirm daily activities, tools used, materials worked with, and services matched to codes.

Material misrepresentation of tradesman exposures would be uncovered and may prompt audits going back several years, penalties, and premium back-payments. Payroll should always be allocated accurately based on actual work performed.

Proper classification ensures contractors pay fair rates aligned with their risk level, without subsidizing lower risk activities. But there are legitimate ways to optimize costs like breaking out office payroll under lower rated clerical codes.

The key is working with experienced insurance advisors to assign payroll honestly across the codes reflecting each employee’s exposures. Attempting to misclassify trades as lower risk occupations to save premium is not advised.

How Can Contractors Get Tailored Workers’ Comp Insurance?

The workers’ compensation system can be complex to navigate with strict state and federal regulations. Mistakes in classification codes, Experience Mod calculations, and reporting claims can be very costly.

When seeking coverage, partnering with insurance specialists focused on the contracting trades is highly recommended. Avoid a one-size-fits-all policy from an insurance carrier’s website or call center.

Some key benefits of using contracting trade specialists include:

  • Access to top regional and national insurers familiar with construction risks who actively write these policies for contractors. Captive contracting insurance agents only work with select carriers.
  • Compliance expertise to steer you clear of violations and help manage claims appropriately. Confidently handle audits. Mistakes lead to fines.
  • Potential access to contracting trade association plans not available to the general public. Group plans through ABC, AGC etc. can offer discounted rates.
  • Policy customization based on your unique mix of employees and work types. Proper class codes control costs.
  • Claims assistance including investigation, directing medical care, coordinating return to work and settlement. Leave the paperwork to the experts.

The right insurance partner takes the burden of handling complex workers’ compensation requirements off your shoulders. This allows you to focus on your contracting business rather than insurance administration. Avoid roadblocks to smooth operation.

Get Contractors Workers Compensation Quotes from ContractorNerd

Do you need to get workers compensation insurance for your contracting business? Getting quotes can be a headache, but ContractorNerd makes it easy.

Our online quote tool allows you to get customized workers comp quotes for your contracting company in minutes. Simply provide details about your business like payroll, employee classifications, and past loss history. Our system will instantly compare quotes from top insurance carriers.

The quotes we provide come with no obligation so you can evaluate multiple options. Once you select a policy, our licensed experts handle the application and setup process to get your business insured quickly.

With ContractorNerd you can:

  • Get side-by-side quotes from leading workers comp carriers
  • Customize your policy limits and terms
  • Bundle with other business insurance policies
  • Speak to a contracting insurance specialist for advice

Don’t waste time shopping for insurance on your own. Let ContractorNerd make getting workers comp easy! Get obligation-free quotes now to protect your employees and stay compliant with state laws.