Most builders buy general liability and
workers comp insurance from the same
company. While there is no reason to
change this strategy, the rapid increase
in workers comp rates has changed the
way insurers sell construction insurance,
and the way builders shop for it.
There are still two primary markets
for workers comp insurance: the voluntary
market, and the assigned risk pool.
In the voluntary market, insurers can
decide whether to underwrite policies
based on the track record of each construction
company that applies. Insurers
have no choice, however, when it
comes to the assigned risk pool. Builders
in this category are either engaged in
dangerous work, such as blasting or mining,
or have a poor claims record.