Two contractors with similar payroll can receive very different premiums.
Insurance companies may consider:
- Type of work
- Payroll
- Sales
- Years in business
- Claims history
- Experience Modification
- Employee experience
- Subcontractor use
- Percentage of subcontracted work
- Residential vs. commercial work
- New construction vs. remodeling
- Maximum project size
- Work at heights
- Roofing exposure
- Excavation
- Demolition
- Hot work
- Welding
- Structural work
- Geographic territory
- Safety program
- Driver records
- Commercial vehicle exposure
This is why comparing only one contractor’s premium to another contractor’s premium can be misleading.
The actual exposures may be very different.