Workers' Comp for Construction Contractors

Construction is one of the most heavily regulated and highest-rate industries for workers' compensation. Class codes vary widely depending on the type of work — residential carpentry, commercial framing, masonry, and concrete each carry different rates. Many states require coverage starting at one employee for construction, even when other industries are exempt below 3-5 employees.

Common class codes for construction businesses

Why Construction workers' comp is tricky

Construction class codes are routinely misclassified — operations often span multiple codes, and carriers frequently default to the highest-rated code for an entire payroll instead of properly splitting it. Florida and California have especially strict rules for construction sole proprietors. We do free policy reviews to ensure your codes and split are correct.

Tips to lower your construction premium

• ✓ Get a Certificate of Insurance (COI) issued the same day for new job sites
• ✓ Maintain a clean experience mod by tracking near-misses and safety meetings
• ✓ Use ghost policies (where allowed) for sole-prop construction owners with no employees
• ✓ Verify all subcontractors carry their own coverage to avoid being charged on their payroll
• ✓ Audit your annual payroll declaration carefully — overstated payroll = overpaid premium

Construction workers' comp by state

Rates, exemption rules, and rating bureaus for construction businesses vary widely. Pick your state for construction-specific requirements and average rates: