ForumsLegal and Insurance

77, Welcome and good luck. You ask interesting questions. Workers Comp is usually based on payroll.
Where are you located (State) You say that you are a newer contractor.
O K.In business you have to spend money to make money. I am a QuicksBook Consultant
Everybody in business should have an Accountant, a Lawyer and an Insurance Agent.
There have been a few posts recently from Insurance agents looking for new clients.
Under Members you should add a few words about you and your business.
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Good luck, LUCKIEST

I don't like shopping for insurance either (but you have to in order to keep rates competitive).

Both things you were told are correct -- just two different questions.

The three criteria that insurance companies generally use to determine the amount of an employer's workers comp insurance premiums are:
1. Payroll;
2. Employer Classification (premiums are higher if the types of workers you employ have an inherently higher exposure to injuries - e.g., roofers compared to secretaries);
3. Experience Modification Factor (or "mod" where an individual employer is compared with other employers within the classification based upon the frequency of accidents and severity of injuries - more incidents result in higher premiums).

The three criteria that insurance companies generally use to determine the amount of an employer's liability insurance premiums are:
1. Sales;
2. Type of Services Provided or Products Sold;
3. The Role of the Employer (in the process of providing the services or products).

Sorry, I have no recommendations for a specific carrier or underwriter, but you do generally get better rates if you make it an "all or nothing deal" when you ask for quotes (i.e., have agents or firms give quotes on the basis of underwriting all of your business insurance coverage, not just one type of policy).

Hope this helps. Best wishes.

Where a millwright code exists, it is generally an expensive classification. My suggestion would be to see an insurance auditor or consultant in who specializes in workers comp classification cases.

As for the second issue, I don't determine billable costs that way, so I can't comment -- but maybe other contractors do and can.

If you are in california call this agency I got all my business insurance from they are very helpfull
altimainsurance.com good luck