Many injuries happen in the construction industry. That’s why the workers’ compensation insurance premiums are very high for those working in this industry. If an employee gets hurt on the job, the liability for the injury could be unlimited. It is important for the contractor to protect his/her employees with a worker’s compensation insurance.


There is no set price for the workers compensation insurance. Usually the price is based on employees wages. The rate might vary between $0.75 - $69.00 for $100 earned by the employee. It really depends on the type of work and job classification of the employee. The construction business might have office employees for which they pay $0.75 for $100.00 earned by those employess, or they might have flooring installers for which they pay $12.00 for every $100.00 earned.

Do I need workers’ compensation insurace for my subcontractors?

No, you don’t need to have workers’ compensation insurance for your subcontractors as long as they are properly licensed and carry workers’ compensation for their employees. If subcontractor did not have workers’ compensation insurance for his/her employees, the prime contractor can be held liable for the subcontractor employees’ injuries.

Annual Audits

It is hard to predict the wages to be paid year ahead. That’s why the contractor should make a best estimate for his/her payroll for they year. At the end of the policy period, an audit will be pefromed to see the actual payroll fo the year, and final premium will be adjusted to reflect the final payroll.

Does experience lowers the price of insurance?

Experience does play a role in how much a contractor will pay for workers’ sompensation insurance. For newly licensed contractors, usually the only option is to go through State Fund, and after 3 years, they can then obtain an insurance policy on the regular insurance market. Not all insurance companies, agents or brokers deal with the State Fund. We deal with State Fund and regular insurance markets, therefore allowing our customers to receive better rates of both markets

Call our agents to get a free, no obligation quote at 1-800-823-6415.