Builders general liability
There is no single price for builder's insurance, and anyone who quotes one without asking your trade is guessing. The premium follows the operation, not the policy name.
The rate per hundred dollars of payroll is set by the class code, and class codes follow the actual work rather than the business name. This is the single biggest lever on price.
The exposure base for general liability and workers compensation, and therefore the largest single input. Overtime, bonuses and materials you supply all affect how it is calculated.
Subcontracted labour is treated differently depending on whether the sub carries their own coverage and can show a current certificate. Uninsured subs are often charged back to your payroll at audit.
Rates, benefit levels and requirements differ by state, and a multi-state policy prices on the highest-exposure state on the schedule.
Prior claims, and how long you have been in business, move the price more than most builders expect. A clean year is worth real money the following year.
Higher limits cost more and a higher deductible costs less. On liability, the deductible matters least, because liability claims are usually large.
For a typical builder, workers compensation is usually the largest line, followed by general liability, then commercial auto, then tools. That ordering surprises builders who assumed liability would dominate, but workers compensation is priced on the whole payroll and pays statutory benefits with no cap on medical costs.
It depends almost entirely on the trade and the payroll. A low-hazard trade with a small payroll can be inexpensive; a roofing operation with a large payroll in a high-cost state is a different number entirely.
Because it pays statutory benefits to your own employees with no cap on medical costs, and it is priced on the whole payroll rather than a fraction of it. It is also the coverage most likely to be used.
Sometimes, and only if those subs carry their own coverage and you can show current certificates. If they do not, the payroll is often charged back to you at audit, so the saving is temporary and the bill arrives later.
A factor applied to workers compensation pricing that reflects your claims history against others in the same classification. Below one means you pay less than the base rate, above one means more. It follows you between carriers.
Tell us your trade, payroll and the states you work in. A licensed specialist will follow up with real numbers.
