If there’s one industry where workers’ compensation can get expensive fast, it’s construction. Between changing crews, subcontractors, payroll audits, and claims, I see a lot of contractors paying more than they need to. The good news is that many of these issues can be fixed before they impact your renewal. Here are the biggest mistakes I see.
1. Employee Classifications Aren’t Reviewed
One of the first things I look at is employee classifications. I’ve seen office staff or supervisors classified the same as field employees, costing contractors thousands in unnecessary premium.
2. Claims Are Never Reviewed
Many contractors assume their experience modification is correct. I don’t. Reviewing open claims and reserves can uncover opportunities to reduce future premiums.
3. Safety Programs Exist Only on Paper
Carriers want to see active safety meetings, training, and jobsite accountability—not just a manual sitting on a shelf.
4. Payroll Isn’t Tracked Properly
Construction payroll changes throughout the year. Organized payroll records make audits easier and help prevent unexpected premium increases.
5. Waiting Until Renewal to Shop Coverage
The best time to review your workers’ compensation program is 60 to 90 days before renewal. Waiting until the last minute limits your options and negotiating power.
It’s Not Always About Finding the Cheapest Policy
The goal isn’t simply to lower this year’s premium. It’s to improve your claims history, experience modification, safety culture, and overall insurance program for years to come.
Final Thoughts
If your workers’ compensation premium seems higher than it should be, don’t assume that’s just the cost of doing business. A review of your classifications, claims history, payroll records, and experience modification can often uncover opportunities to save money without sacrificing coverage. At Goldbridge Insurance Services, that’s exactly what we help contractors do every day.
Need a second opinion on your workers’ compensation policy?
We’ll review your current coverage, experience modification, claims history, and payroll at no cost and let you know if there are opportunities to improve your program. Call (888) 590-2667 or email info@goldbridgeins.com. Goldbridge Insurance Services · 15840 Ventura Blvd, Suite 203, Encino, CA 91436
