Construction
Better Workers' Comp Coverage for Contractors
It’s getting harder and harder to find affordable workers’ compensation insurance for artisan contractors and construction companies. Rates have increased over 25% in most states over the past several years. Good thing you found us.
We’ve been helping contractors find easy and affordable coverage for over 15 years. Our experts understand the underwriting requirements from the insurance companies and we know how to negotiate the lowest rates on coverage. That’s why we’ve developed construction programs designed to help you get the best rates and most flexible payment options.
Pay as you go
Improve cashflow and reduce the potential for big audit bills.
Comparison Pricing
Get quotes from multiple insurance companies to ensure the lowest rates.
Claims Management
Our carriers have experienced claim managers to close claims quickly.
Workers' Compensation Codes Related to Contractors
Employees are grouped into classification codes based on their job duties and work functions. The National Council on Compensation Insurance (NCCI) currently utilizes nearly 800 class codes to help insurance companies and agents categorize employees for rating purposes. Insurance companies set a base manual rate for each class code in order to begin pricing a policy.
Properly classifying workers is an important part of the quote process. Mis-classified employees can cost small businesses thousands of dollars. You could end up paying too much for coverage or owing more money after an annual audit.
Class Code 5645
Residential Construction
Residential construction is a broad class code and applies to most carpentry work in connection with a residential homes up to 3 stories. Work performed may include framing, drywall, siding, rafters, roof decks, cabinets and trim work. Handyman and remodeling work also falls under this classification.
Class Code 5403
Carpentry and Construction
When construction exceeds 3 stories it is typically classified under wc 5403. This includes apartment complexes and commercial structures. There are no restrictions for building height under this class code. It includes all carpentry work that is not classified under another code.
Class Code 8227
Construction- Permanent Yard
This class is a common addition to many contractor operations. It applies to permanent locations or shops maintained by contractors for storage and equipment maintenance. This code is intended only for dedicated shop employees.
Class Code 5437
Finish Carpenters
Finish carpenters specialize in interior carpentry finish such as trim work, interior doors, paneling, wood floors, staircases, cabinets, interior doors and counters. No rough carpentry such as framing is included under this class code as this code is intended for skilled specialists. Wallpapering and caulking is included under this classification.
Class Code 5474
Painters
This class applies to most painting contractors engaged in painting various things including residential houses and commercial structures. It includes both interior and exterior walls.
Class Code 5221
Concrete Construction
Concrete work may include floors, foundations, driveways, curbs, patios and sidewalks. Foundation repair and paving is typically included under this classification
Alternative State Class Codes for Contractors:
Sometimes a state will deviate from the industry class code recommended by NCCI. Instead of the NCCI code, they may require the utilization of a state specific class code for certain business segments.
Related: general contractors, construction, handyman, residential remodeling, carpentry, residential home builder, commercial contractor, framer, siding installation, cabinet installation, trim carpenter.
How Does Workers' Comp Work?
Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
- Loss of income for employees unable to perform job duties
- Medical expenses for employees injured on the job
- Retraining expenses for employees unable to return
- Permanent injury or disability for lasting injuries
- Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
- Injuries resulting from a violation of the law
- Incidents resulting from employees' use fo drugs or alcohol
- Injuries that did not occur in connection with the job
- Clear company policy violations
- Injuries that did not occur in connection with the job
How Much is Contractors Insurance?
The average rate our customers pay for workers’ compensation under the construction class code is between $5.25 and 10.25 per $100 of payroll, depending on the state. The average cost for a general liability insurance policy is about $1,100.00.
- Work Comp is priced based on payroll
- Your state and EMR Rating will affect your cost
- The type of construction work can modify rates
- Premium discounts and policy credits may apply
- GL rates for contractors are based on payroll (rated per $1000)
- Gross revenue may affect pricing
- The type of work done matters to underwriters
- Prior clams and years in business affect pricing
- SIC codes vary by industry
Do Independent Contractors Need Workers' Comp Insurance?
Most states require contractors to carry workers’ compensation coverage even if they don’t have any w-2 employees. Additionally, most larger contractors who hire independent contractors as subs require them to have coverage. Otherwise, they will likely have to pay additional premium for hiring an uninsured sub-contractor.
It is common for many small independent contractors to buy a workers’ comp ghost policy when they do not expect to hire any employees during the policy period. A ghost policy often satisfies other contractor requirements even though they provide very little value to the insured contractor.
How do I get started?
Here's what we need from you
- Business details, locations, FEIN or SSN
- Estimated annual payroll and job duties- class codes
- Claims info or loss history- if applicable
What Happens Next?
We go find for your best price
- Our software matches you with top-rated carriers
- Our agents apply and negotiate your lowest rates
- We present and recommend your best options