Injuries frequently occur in the construction industry. That’s why workers’ compensation insurance premiums are very high for this industry. If an employee gets hurt on the job, the liability for the injury could be open-ended. It is important for the contractor to protect his/her employees with a worker’s compensation insurance plan.


There is no set price for workers’ compensation insurance. Usually, the price is based on employee wages. The rate might range from $0.75 - $69.00 per $100 earned by the employee. It is dependent upon the type of work and job classification of the employee. For example, the payment for a construction company’s business office employees may be $0.75 per $100.00 earned income, while flooring installers are paid $12.00 for every $100.00 earned.

Do I need workers’ compensation insurance for my subcontractor companies?

No, you don’t need to have workers’ compensation insurance for your subcontractor companies as long as they are properly licensed and carry workers’ compensation for their employees. If a subcontractor did not have workers’ compensation insurance for their employees, the prime contractor may be held liable for any subcontractor employee injuries.

Annual Audits

It is difficult to predict the wages paid in the future which is why the contractor should make a best payroll estimate for the year. At the end of the policy period, an audit will be performed to review the actual payroll for the year. A final adjusted premium will be issued to reflect the final payroll.

Does experience lower the price of insurance?

Experience does play a role in how much a contractor will pay for workers’ compensation insurance. For newly licensed contractors, usually the only option is to go through a State Fund. After three years, an insurance policy can be obtained in the regular insurance market. However, not all insurance companies, agents or brokers deal with the State Fund. Pro-Builders deals with both the State Fund and regular insurance markets, providing our customers with the best possible rates from both markets

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