Workers' Compensation Articles

What actually drives your workers' comp number

Workers' compensation is often a contractor's largest insurance cost, and it is priced on estimates that get corrected later. The articles in this category explain the three things that move that cost the most: the annual premium audit, where estimated payroll is reconciled against what actually happened; the Experience Modification Rate, which measures how your workers' comp losses stack up against what's expected for businesses your size in the same class codes; and how workers are classified, since treating an employee as a subcontractor can leave an injury with no policy to respond.

Read them before your audit, when you are adding crews or subcontractors, or when a GC asks for your EMR on a prequalification form. Keeping a current certificate on file for every subcontractor and tracking payroll by class code are two of the most practical ways to avoid an unexpected audit bill.