What actually drives your workers' comp number
Workers' compensation is often a contractor's largest insurance cost, and it is priced on estimates that get corrected later. The articles in this category explain the three things that move that cost the most: the annual premium audit, where estimated payroll is reconciled against what actually happened; the Experience Modification Rate, which measures how your workers' comp losses stack up against what's expected for businesses your size in the same class codes; and how workers are classified, since treating an employee as a subcontractor can leave an injury with no policy to respond.
Read them before your audit, when you are adding crews or subcontractors, or when a GC asks for your EMR on a prequalification form. Keeping a current certificate on file for every subcontractor and tracking payroll by class code are two of the most practical ways to avoid an unexpected audit bill.
Workers' Compensation
How a Workers' Comp Premium Audit Works
Every workers compensation policy is priced on an estimate — the annual audit is where that estimate gets reconciled against what actually happened, and it's the step most contract
By David Gleason · Published August 24, 2026 · Updated October 12, 2026
What an Experience Modification Rate (EMR) Measures
An Experience Modification Rate — EMR for short — is one of the most consequential numbers in a contractor's insurance program, and one of the least understood.
By David Gleason · Published August 24, 2026 · Updated October 12, 2026
Subcontractor or Employee? California's Construction-Specific Test and the Workers' Comp Risk of Getting It Wrong
By David Gleason · Published August 24, 2026 · Updated October 12, 2026
