Workers' comp is the cornerstone of construction insurance. Construction trades have the highest injury rates of any industry, and every Southeast state requires coverage at relatively low employee thresholds:
Cost range: Workers' comp premiums for construction run $8,000 to $30,000+ per year depending on payroll size, class codes, and your MOD rate. High-risk trades like roofing (class code 5551) pay $15-$25+ per $100 of payroll, while lower-risk trades like electrical (5190) pay $4-$8 per $100.
2026 update: NCCI recommended an 8.8% decrease in Georgia workers' comp rates effective March 1, 2026. Florida rates also declined modestly. This is good news for construction firms that have managed claims well.
We shop 300+ carriers -- including specialty construction markets -- to find the best combination of coverage and price for your trade and payroll.
Get My Free QuoteYour Experience Modification Rate (EMR or MOD) is a multiplier applied to your workers' compensation premium. It compares your company's actual claims history over the past three years against the expected losses for businesses of your size and industry classification.
| MOD Rate | Base Premium $50,000 | Actual Premium | Annual Difference |
|---|---|---|---|
| 0.75 | $50,000 | $37,500 | -$12,500 savings |
| 0.90 | $50,000 | $45,000 | -$5,000 savings |
| 1.00 | $50,000 | $50,000 | Average (baseline) |
| 1.15 | $50,000 | $57,500 | +$7,500 surcharge |
| 1.35 | $50,000 | $67,500 | +$17,500 surcharge |
MOD rates are calculated by NCCI in most Southeast states (GA, SC, NC, TN) and by the Florida Rating Bureau in Florida. The calculation uses three full policy years of data, excluding the most recent year.
Covers third-party bodily injury and property damage claims on and off the jobsite. Most general contractors and project owners require subs to carry $1M/$2M GL limits before stepping on site.
Covers structures under construction against fire, wind, theft, vandalism, and weather damage. Essential for any project where you have materials and labor invested.
Covers trucks, vans, and equipment vehicles. Personal auto policies exclude business use entirely.
Covers tools, equipment, and materials in transit or stored at jobsites. Standard property policies don't cover items away from your premises.
Provides additional limits above GL, auto, and employer's liability. With nuclear verdicts on the rise in construction -- jury awards exceeding $10 million are increasingly common -- umbrella coverage is essential.
From certificates of insurance for your next bid to a full risk management review and MOD rate audit, we've got you covered. 60+ years insuring Southeast businesses, 300+ carrier markets, no obligation.
Start My Free Risk ReviewIf your crews work across state lines, you need to understand each state's requirements:
Construction is one of the hardest classes to insure. Many carriers restrict high-risk trades (roofing, demolition, excavation, tree service), and rates vary dramatically by classification code. An independent agent like Lee, Hill & Lee Insurance shops 300+ carriers -- including specialty construction markets and surplus lines -- to find coverage that a direct writer or captive agent simply can't access.
We also audit your MOD rate annually, review certificates of insurance for subcontractors, and help you structure your program to win bids. Whether you're a 5-person framing crew or a 100-employee general contractor, we tailor coverage to your specific trades, territory, and risk profile.
Free MOD rate audit. Free risk review. Free quotes from 300+ carriers. No pressure, no jargon -- just straight talk from people who understand construction.
Get My Free MOD Rate AuditTotal annual costs for a mid-size construction company range from $15,000 to $50,000+ depending on payroll, trade classifications, number of employees, and claims history. Workers' compensation is usually the largest line item at $8,000-$30,000+, followed by general liability at $3,000-$8,000 and commercial auto at $1,500-$4,000 per vehicle.
Your Experience Modification Rate (MOD) is a multiplier applied to your workers' comp premium based on your claims history versus industry average. A MOD of 1.00 is average. Below 1.00 means you pay less (a 0.80 MOD saves 20%). Above 1.00 means you pay more (a 1.25 MOD adds 25%). It's the single biggest factor you can control in your workers' comp cost.
Yes. Florida has the strictest construction workers' comp requirement in the Southeast -- any construction business with 1 or more employees must carry coverage. Even sole proprietors in construction must either carry workers' comp or file for an exemption with the state. Penalties for non-compliance include stop-work orders and fines of $1,000 per day.
Completed operations is part of your general liability policy that covers claims arising from your finished work. In construction, defects or failures can surface months or years after project completion. Without adequate completed operations limits, you're exposed to construction defect lawsuits that could bankrupt your company. Most GCs require subs to maintain completed operations coverage for years after project completion.
Focus on safety programs (OSHA training, daily toolbox talks), return injured workers to light duty quickly, report claims immediately, and audit your experience mod worksheet annually for errors. An independent agent can review your MOD calculation and challenge inflated reserves that may be unfairly raising your rate.