facebook pixel

Large Contractor Insurance

Are you a contractor that does over 10 Million Dollars in sales a year? If so you know that the larger you get the larger your insurance bill is. In some cases it is enough each year to buy a normally priced house in most areas.

Insurance agents are constantly calling you to say they can get you a lower price.The fact of the matter is you should realize you have graduated from using high school insurance agents that try to sell you on price. You need to get someone with a PhD for your insurance solutions.

You are constantly reviewing your practices to see what you can do better. Insurance agents are constantly calling you to say they can get you a lower price.
Guard Logo
Dovetail Logo
Travelers Logo
Nationwide Logo
Tokiomarine Logo
Distinguised Logo
icon

Get Fast Quote

Add details for the fastest quote

Instant Free Quote

icon

Call Us 24/7

We’ll answer at any time, call us.

(866) 225-1950

icon

Schedule Consultation

Choose the best time for you.

Book Now

If you are paying over $200,000 in General Liability Insurance per year, these profits can be in the millions when you decide to sell your business or retire.

Insurance Options And Strategies For Large Contractors

At ContractorsLiability.com we will dive deep into your current coverages and policies. There are many options available to large businesses that are not available to small contractors. The first and probably most recognizable for the savvy business owner is becoming part of a “Captive Insurer”. This is usually defined as an insurance company that is owned by the insureds, ie you and other business owners in similar situations.

The main purpose of this is to cover your insurance risk. You also get the additional benefit in that the captive underwriting profits can then be set up to be paid back to you or your heirs with little or no tax liability. If you are paying over $200,000 in General Liability Insurance per year, these profits can be in the millions when you decide to sell your business or retire. This money will be retained by you and not used to line the pockets of people like Warren Buffet.

White time icon small with transparency

Get a Large Contractors Insurance Quote Fast

Only 5 minutes of your valuable time. We can often get same day coverage.

Instant Free Quote

Large Contractors Insurance Rates And Coverage

This table displays typical rates and coverage for Large Contractors General Liability for $1 Million/$2 Million Policy.

State Coverage Guard Travelers Liberty Mutual Attune Nation Wide Next Insurance
IL 1M/2M $16500 $19000 $15800 $18000 $16100 $19000
IN 1M/2M $16500 $16000 $15500 $15500 $16100 $16000
CA 1M/2M $16500 $22000 $15800 $21000 $16100 $22000
PA 1M/2M $16500 $22500 $15200 $21500 $16100 $22500
WA 1M/2M $16500 $16000 $15500 $15000 $16100 $16000
GA 1M/2M $16500 $16000 $15500 $15000 $16100 $16000
CO 1M/2M $16500 $18000 $15200 $17000 $16100 $18000
TX 1M/2M $16500 $14000 $15200 $13000 $16100 $14000

Annual premium above includes unlimited certificates of insurance.

Rating assumes 150,000 gross revenues for contracting/general contracting with 10% subcontractor costs.

Premium are subject to underwriting approval and financing charges may apply.

Workers’ Compensation Insurance

Workers’ Compensation Insurance is a major expense for a large contractor. Going to my point of needing a PhD working on your insurance solutions, maybe you current agent has told you what your current experience modification is.

Have they ever sat down with and explained to you how that number was calculated? Have you ever checked to make sure it was calculated correctly? Did you even know there was something you could do about it? I guarantee your agent has never done this with you.

Workers’ Compensation Experience Rating Form

The basic Workers’ Compensation Experience Rating Form lists the Following:

  • The class codes for the various types of employees you have working for you

    It is very important that these are correct. As a salesman classified under a roofing code could be costing you thousands of dollars. Also the class codes need to be reviewed themselves to make sure they accurately reflect the work the employee is performing. Again the wrong class codes listed can cost you money.

  • The amount of payroll for each code

    Again this must be reviewed for accuracy to ensure the payroll is being properly classified.

  • The expected loss ratio per $100 in payroll

    This means for every $100 of payroll, in this class code, other companies, on average, have experienced this amount of workers’ compensation claims.

  • Expected Losses

    This is the amount of payroll multiplied the expected loss ratio.

  • Actual Losses

    This is the amount of the actual losses incurred by your business.

  • Claim Data

    This is the claim number from the insurance carrier and it identifies a specific case file. Specific claims will be listed individually if they are open. This information can be quite useful in identifying trouble spots. As you know the more claims you have the higher your experience modification will be.

    Let us say after review of this claim data you see one employee Homer Simpson in the warehouse has had three accidents in the last 2 years. This employee is either on a losing streak or is just plain bad news. Simpson is making $37,000 a year. He is costing you an additional $100,000 in Workers’ Compensation premiums per year. It might be time for some downsizing or at the very least additional training.

Has your current agent ever went over anything like this with you? The answer is probably not. That it is why it is time to graduate to ContractorsLiability.Com

Captive Insurance Programs

There is is good chance you do not even know what your experience modification is let alone how it is calculated. It is also highly unlikely your current agent has reviewed it for accuracy. Inaccurate experience modifier calculations are often the result of mistakes in payroll amounts, erroneous job classifications, improper claim reserves and open claims that should be closed.

A comprehensive process should include a detailed analysis of an organization’s payroll, class codes and claim history, which will ensure the experience modifier is accurate and that workers’ compensation premiums are reduced accordingly. We will complete a comprehensive evaluation of exposures before submitting your information to underwriters.

This will allow your business to take control of your workers’ compensation costs, rather than allowing a carrier to simple dictate what you will pay. An incorrect experience modification may also exclude you getting coverage in preferred markets. It may also in some instance bar you from bidding or getting large contracts that require a minimum Experience Modification. ContractorsLiability.Com will also work with you on proactive solutions to improve your safety record.

Along with preventing employee injuries it will also save you money and improve employee morale in the long run.

Challenging Your Experince Modification

Captive insurance is an alternative risk financing solution for companies of medium to large size. It is a fact that 90% of the Fortune 500 companies own at least 1 captive insurance company arrangement. As a captive owner, you are basically creating your own insurance company.

Either on your own or by joining a group of similar businesses. This allows you to gain ownership and control of all aspects and costs of your insurance programs while creating the potential for significant financial gains.

3 Important Benefits of a Captive are:

  • Save and Manage costs

    These include lower premiums, greater cash flow and capturing investment return.

  • Increased Control

    You will be able to design policies for your specific needs, lower claim costs and management, eliminate insurance company built in policy profit. You will also gain a better understanding of how to mange risks.

  • Improve your risk management

    You will reduce your overall cost of risk by partnering with like minded business owners in your industry. This allows for sharing of knowledge and experience to operate your business with greater efficiency all the while reducing losses and improving the safety of your employees and clients work environment.

Commercial Vehicle Insurance

Most larger contractors have an extensive fleet of vehicles. The cost of insuring these vehicles is expensive. There are a number of factors that drive the cost are:

  • Area of operations
  • The size and weight of the vehicles
  • What the vehicle is being used for
  • Trailers and other equipment attached to the vehicles
  • Value of the vehicles
  • Driver age
  • Driver history (tickets & accidents)
  • Prior losses

As you can see some of these you have no control of. However the main components of cost are driver history and prior losses. We can work with you to establish safety programs that cam reduce accidents and losses. This will increase your bottom line by lowering your Commercial auto insurance costs. Also we can review your driver history.

An example of this would be after reviewing your driver history we are able to find out that one employee Barney Gumble has 2 driving under the influence convictions and accidents and tickets on his record.

The simple change of prohibiting him from operating vehicles could save you thousands. The problem with things like this is that you do not know what they are until you investigate. The average insurance agent does not normally do such active investigations and advise you of the steps you can take to reduce costs.

Reputation Matters

Our customers trust us for great customer service and cost-effective coverage.

Get Protected

Frequently Asked Questions (FAQ)

The following are common questions about Large Contractor Insurance.

  • What are the facts that I should be concerned about?

    The fact of the matter is you should realize you have graduated from using high school insurance agents that try to sell you on price. You need to get someone with a PhD for your insurance solutions. You might ask yourself what the hell is this guy talking about.

    I just want to get my insurance at the lowest possible price with the coverage I need. Well what I am talking about is insurance solutions, not just low cost insurance. At ContractorsLiability.Com we will dive deep into your current coverages and policies.

  • How many options are available to me?

    There are many options available to large businesses that are not available to small contractors. The first and probably most recognizable for the savy business owner is becoming part of a “Captive Insurer”.

  • What is the next step?

    At ContractorsLiability.Com we understand you have many questions regarding our insurance solutions. You will want to know how these options and strategies will benefit your company’s cash flow. If you are considering the possibilities of graduating to a more complex insurance structure, it is time you spoke to our industry experts who outline a personalized plan for YOUR company.

Ebook ok Constractor Liability, Everything you need to know about.

E-Book Now Available

Learn the nuts and bolts of Contractors Insurance and how to protect your staff, your business and you.

Read Now

ContractorsLiability.com is here to help with all your insurance coverage needs, including specialized plans and tailored insurance policies. All our highly trained agents can help you in English or Spanish.

logo

We’re one of the fastest growing providers of liability converage on the web, offering insurance quotes of all types for contractors in the USA.

icon

At Contractors Liability we value and respect your privacy. That’s why we don’t sell or share your information with any third parties and we only use it for our commercial purposes.