What Information Does a Commercial Underwriter Need to Quote a Contractors Package?

A complete contractors package submission produces a usable quote in 5 to 7 business days. An incomplete one sits in a pending queue for two to four weeks while the underwriter chases down payroll breakdowns, loss runs, and subcontractor data — and then they quote it conservatively because they filled the gaps with worst-case assumptions. Contractors represent one of the most complex accounts in commercial lines: the package typically spans six or more coverage lines, rating is classification-sensitive, loss history is priced more aggressively than most commercial accounts, and subcontractor exposure can multiply the insured's apparent payroll by 200% or more on a standard audit. Getting the submission right from the start is the single variable brokers control. This guide covers every data element underwriters need, organized by coverage line, so you can gather everything in one client conversation.

Prerequisites

• The contractor's legal entity name and all DBAs or trade names they operate under — policies must be issued to the correct named insured or coverage disputes arise at claim time
• Primary and secondary NAICS codes — contractor classification starts here; bring descriptions of all trades the client performs, not just the dominant one
• Current and prior declarations pages for all coverage lines, if the account is not a start-up
• Contact information for current and prior carriers — underwriters request loss runs directly from carriers when broker-provided runs raise questions about completeness
• Three to five years of currently valued loss runs for every coverage line in the package (dated within 90 days)
• A list of all states where the contractor performs work or operates vehicles

Step 1: Classify the Contractor Type and Scope of Work

Before filling out any ACORD form, define what kind of contractor you are placing. Underwriters use contractor classification to determine which rating manual applies, which endorsements are required, and whether the account is eligible for a packaged program or needs individual market placement.

The core classification question is: general contractor or subcontractor, and residential or commercial?

• General contractors (GCs) manage projects and hire subs. Their primary GL exposure is completed operations — the work their subs do becomes their liability once the project closes out. GCs with significant subcontracted payroll face premium adjustments when subcontractor certificates of insurance are not maintained.
• Subcontractors are rated on their own trade and their own payroll. A plumber, electrician, roofer, and HVAC mechanic are each rated under distinct NCCI class codes with distinct loss histories and rate factors.
• Residential vs. commercial affects both GL and workers' comp rates. Residential general contractors, frame contractors, and roofers are rated at higher GL rates in most states because residential construction produces a higher frequency of bodily injury and completed operations claims.

Document the following for the submission:

• Type of contractor (GC, specialty trade, design-build, construction manager)
• Project types: new construction, renovation/remodel, tenant improvement, service and repair
• Project size range: average contract value and largest single project in the past 12 months
• Percentage of work residential vs. commercial vs. industrial
• Geographic service area — all states where work is performed
• Licensing status in each operating state

Step 2: Complete the General Liability Application (ACORD 125 + ACORD 130)

The ACORD 125 (Commercial Insurance Application) and ACORD 130 (General Liability Section) are the standard submission forms. Underwriters review the following fields most closely on contractor submissions.

Gross receipts and payroll by trade classification. GL premium for contractors is calculated on either gross receipts or payroll depending on the class code. The carrier's underwriting manual and NCCI/ISO class code for the specific trade determines which exposure base applies. Provide separate breakdowns by trade when the contractor performs more than one type of work — a single blended total produces a blended rate that is often incorrect.

Completed operations. Contractor GL policies have two insuring agreements that rate separately: premises and operations (work in progress) and products-completed operations (work after the job is done). Completed operations claims — a structural defect discovered two years after construction closed out, for example — drive significant frequency and severity for GCs and specialty trades. List the contractor's three largest completed projects in the past 12 months: project name, location, contract value, and completion date.

Subcontractors used. Document estimated annual payments to uninsured subcontractors. Carriers add uninsured subcontractor payroll to the named insured's payroll for rating purposes — this is the audit adjustment that most frequently surprises clients at year-end. If the client uses subcontractors, document the total subcontracted work value, the contractor's written subcontractor agreement requirements, and whether certificates of insurance with the required limits and additional insured endorsements are tracked. See the certificate of insurance guide for the documentation and endorsement verification process that protects your E&O exposure.

Operations questions. The ACORD 130 includes specific yes/no operations questions that trigger subjectivities or declinations for contractors: work above 15 stories, work on bridges or dams, exterior residential construction, hazardous materials abatement, underground excavation, and blasting. Answer these accurately — an underwriter who discovers undisclosed operations at claim time has grounds to contest coverage.

For design-build contractors and construction managers providing professional services, understand the gap between commercial general liability and professional liability (E&O): the standard CGL professional services exclusion carves out design, engineering, or architectural services entirely, meaning these contractors need a standalone professional liability policy layered onto the package.

Step 3: Document Payroll by Class Code for Workers' Compensation

Workers' compensation premium for contractors is calculated using NCCI class codes or state-bureau equivalents, an experience modification factor (EMR/X-MOD), and estimated annual payroll by code. See the workers' compensation guide for a complete explanation of how premium is calculated and how the X-MOD is derived from three-year loss history.

For a contractor submission, provide:

Payroll by class code for each employee type. Every role must be mapped to the correct class code based on actual duties, not job title. The distinction between clerical office employees (NCCI class 8810), outside sales (class 8742), and any trade-specific code matters significantly — clerical and sales rates are a fraction of tradesperson rates, and including them in a single blended payroll number inflates or understates premium depending on which direction the error runs. The same class code mapping used here for quoting will be re-examined by the carrier's auditor at the end of the policy year — see the workers' comp premium audit guide for how audits work and how to prevent misclassification from generating large additional premium bills.

Experience modification factor. The X-MOD is published annually by NCCI or the state rating bureau. For accounts in the experience modification program (usually those with annual premium above $5,000–$10,000 depending on state), the X-MOD is the single largest premium variable. A 1.20 X-MOD adds 20% to base premium across all eligible payroll; a 0.85 X-MOD saves 15%. Request the contractor's current X-MOD verification from NCCI's online portal (ncci.com) or ask the client for their current experience rating worksheet.

States of operation. Workers' comp is state-specific — rates, class codes, and coverage requirements vary by state. A contractor who performs work in multiple states needs the policy endorsed for each state or carries a separate policy per state depending on carrier filing. Identify every state where employees are currently assigned to work, and any states the contractor expects to enter in the next 12 months.

Owner and officer payroll. Officers are included or excluded from workers' comp payroll based on state law and their election status. In most states, sole proprietors and partners are excluded automatically; corporate officers can elect in or out within statutory payroll caps. Document each officer's name, title, ownership percentage, and current inclusion/exclusion election status.

Step 4: Inventory Owned Equipment and Vehicles

Most contractor packages include inland marine coverage (contractors equipment / installation floater) and commercial auto. Providing an accurate schedule at submission prevents coverage gaps and eliminates mid-term endorsement requests.

Contractors equipment schedule. List all owned equipment: description, year, make/model, serial number, and current replacement cost or ACV. For scheduled items above a carrier's blanket limit (typically $5,000–$10,000 per item), a separate scheduled value is required. Tools under the blanket threshold can be listed as a blanket amount. Leased or rented equipment is covered under an equipment rental endorsement or a separate rented equipment floater — not the owned equipment schedule.

Commercial vehicle schedule. List all owned vehicles: year, make, model, VIN, primary use (service, transport, hauling), and garaging location. Vehicles with attached equipment (cranes, bucket trucks, service bodies) require additional description. For vehicles driven by employees, the underwriter will request a motor vehicle record (MVR) list — all drivers by name, date of birth, and license number. See the commercial auto guide for why personal auto policies fail to cover business use and the coverage gaps contractors typically leave unaddressed.

Hired and non-owned auto exposure. Contractors with employees who use personal vehicles for business — driving to job sites, picking up materials — create hired and non-owned auto (HNOA) liability that is not covered under a personal auto policy. Document whether employees drive personal vehicles for work and whether the company rents vehicles in its own name.

Step 5: Compile Five-Year Loss Runs for All Lines

Loss runs are the most critical underwriting document for contractors. A contractor with a clean loss history can negotiate preferred rates, broad coverage terms, and favorable subjectivities. A contractor with a pattern of general liability losses — particularly completed operations claims — will face restricted capacity, higher rates, or declination.

Request loss runs from current and prior carriers for:

• General liability (5 years)
• Workers' compensation (5 years; NCCI requires 3 years for X-MOD calculation, but underwriters want 5)
• Commercial auto (3 years)
• Inland marine / contractors equipment (3 years)
• Umbrella / excess liability (3 years)

Loss runs must be currently valued — dated within 90 days is standard. Loss runs must show each claim by date of loss, date reported, type of claim, total paid, total reserved, and current open/closed status.

Present large losses proactively. Any single loss above $50,000 will require explanation. Prepare a brief narrative for each large loss: what happened, how it was resolved, and what operational changes were made to prevent recurrence. Underwriters discount accounts where large losses appear without context; an account where the broker provides a detailed narrative and demonstrates that corrective actions were taken presents significantly better than one where the broker submits loss runs without comment.

Step 6: Document Subcontractor Certificate of Insurance Controls

Subcontractor management is a material underwriting factor for general contractors. Uninsured or underinsured subcontractors expose the GC to claims that would otherwise be excluded — a subcontractor's employee injured on the GC's job site may pursue the GC's policy when the sub's workers' comp is inadequate or non-existent.

Document the following:

• The contractor's written subcontractor qualification policy, if one exists
• Minimum insurance requirements imposed on subs (GL limits, auto limits, workers' comp, umbrella)
• Whether the contractor requires subs to provide certificates naming the GC as additional insured — and whether it verifies that the underlying endorsement was issued, not just the certificate
• The process for tracking COI expirations on active projects

A contractor who can demonstrate a disciplined subcontractor certificate tracking process — formal agreements, documented requirements, electronic COI tracking — will be rated more favorably than one who cannot.

Step 7: Identify Specialty Exposures Requiring Standalone Coverage

Most contractor package programs exclude certain specialty exposures by endorsement or condition. Identifying these at submission prevents coverage denials at claim time and positions you to round out the account.

Contractor's pollution liability (CPL). Standard GL forms exclude pollution for most construction operations under Endorsement CG 21 49. Contractors who perform mechanical work (HVAC, plumbing, underground utilities), abatement, or site remediation need standalone CPL coverage. The exclusion is broad enough that a fuel spill from a contractor's truck at a job site can be contested under the pollution exclusion. PFAS contamination is now an active CPL exposure: the EPA's 2024 CERCLA designation of PFOA and PFOS means contractors who disturb contaminated soil can face strict liability cleanup costs — see PFAS Exclusions in Commercial Insurance for how this affects construction accounts specifically.

Professional liability. Design-build contractors, architects, engineers embedded in construction operations, and construction managers providing professional services need E&O coverage the CGL will not provide.

Installation floater. Materials and equipment fabricated or purchased but not yet permanently installed at the job site are not covered under the contractors equipment floater (which covers owned tools and equipment) or the commercial property policy (which covers installed property). An installation floater covers materials in transit and on-site before installation.

Builder's risk. Project-specific builder's risk is typically required by contract on new construction and significant renovation projects. Confirm whether the contractor's current program includes a blanket installation/builder's risk endorsement or whether each project requires a standalone policy.

Surety bonds. Most licensed contractors require a contractor license bond and performance/payment bonds on public projects and many commercial contracts. Surety is underwritten separately from insurance — see the surety bond vs insurance guide for the underwriting differences and why contractors need both.

Umbrella / excess liability. Contract requirements frequently specify combined single limits — $2M, $5M, or higher — that exceed the primary GL policy's $1M per occurrence limit. An umbrella or excess liability policy sits above the primary GL, auto, and workers' comp. Document any contractual minimum limit requirements and confirm the umbrella underlying schedule matches the primary lines submitted.

Step 8: Prepare and Submit the Complete Underwriting Package

A complete contractor submission includes:

• ACORD 125 (Commercial Insurance Application)
• ACORD 130 (General Liability Section) with contractor operations questions completed
• Workers' comp application with payroll by class code and MVR driver list
• Commercial auto vehicle schedule with driver MVR list
• Contractors equipment schedule with replacement cost values
• Five-year loss runs for all lines, currently valued
• Prior policy declarations pages for all lines
• Subcontractor usage summary and COI tracking documentation
• Large loss narratives for any claim above $50,000
• Contractor's license numbers for all states of operation
• Specialty exposure documentation identified in Step 7

Submit everything simultaneously. Underwriters who receive partial submissions either hold the file until missing data arrives or quote it with conservative assumptions. In the current hard commercial insurance market, capacity for contractors — particularly roofers, GCs, and residential frame contractors — is constrained. A complete, well-organized submission differentiates from brokers who submit incomplete packages and follow up with fragments.

Common Mistakes

Submitting a single blended payroll instead of payroll by classification. This is the most common error on contractor submissions and produces the most significant premium errors at audit. Underwriters rate each class code separately; a blended payroll cannot be correctly allocated after the fact.

Omitting the experience modification factor. An X-MOD above 1.00 affects premium significantly and must be disclosed. Brokers who quote without the X-MOD — or who submit the account as if it is a new venture to avoid applying a high X-MOD — face rescission risk if the carrier discovers the modification at audit.

Sending loss runs from prior years only. Loss runs must be currently valued. A loss that was open at $10,000 two years ago may now be closed at $150,000 or still carry a $300,000 reserve. Underwriters will request current runs; delay in providing them delays the quote.

Failing to identify uninsured subcontractor exposure. If the contractor uses uninsured or underinsured subs and the broker does not document this at submission, the carrier audits the uninsured payroll at year-end and charges back-premium. Clients who receive unexpected audit invoices often dispute them with the broker.

Not reading contractor classification exclusions in package programs. Some commercial package programs automatically exclude roofing operations, residential construction, or work above certain building heights. If you place a contractor in a package program without confirming the operations exclusion schedule, you may be providing coverage that does not respond to the contractor's primary work type.

Frequently Asked Questions

What ACORD forms are required for a contractors package submission?

The core forms are ACORD 125 (Commercial Insurance Application) and ACORD 130 (General Liability Section). Commercial auto uses ACORD 137 or the carrier's vehicle schedule. Inland marine and equipment floater are typically submitted on carrier-specific forms. Many carriers also require a contractor supplement questionnaire covering project types, subcontractor usage, and specialty exposures. Workers' comp submissions use NCCI's Application for Workers' Compensation and Employers Liability Insurance or carrier equivalents in monopolistic state fund states.

How many years of loss runs do underwriters typically require for a contractor?

Five years is standard for GL and workers' comp; three years for commercial auto and inland marine. Accounts with large or unusual losses may require longer histories going back as far as the current X-MOD experience period, which spans three years under NCCI's standard methodology. Start-up contractors with no prior coverage history receive a 1.00 X-MOD by default and are rated as new ventures — no loss history documentation is required, but the underwriter will note the absence of history in pricing.

What's the difference between a contractors package and a BOP for contractors?

A Business Owners Policy is designed for smaller, lower-hazard commercial risks. Most BOP programs exclude contractors by class code — particularly GCs, specialty trades, and roofing contractors — because the operations and completed operations exposure exceeds BOP eligibility guidelines. A contractors package is purpose-built: it includes GL rated on contractor class codes with completed operations coverage, workers' comp as a standalone line, and inland marine for tools and equipment. See the BOP coverage guide for BOP eligibility criteria and the exclusions that make it unsuitable for most contractors.

Do I need separate policies for each coverage line in a contractors package, or can it all go with one carrier?

Many admitted carriers offer true package policies for eligible contractors — GL, inland marine, and sometimes commercial auto are issued as a combined form at a package discount. Workers' compensation is almost always a standalone policy because it is separately regulated by state bureaus. Umbrella and professional liability are separately issued in all cases. Placing as much as possible with one carrier simplifies administration and eliminates gaps in cross-coverage endorsements (additional insured, waiver of subrogation, primary and non-contributory) — but not all carriers write all lines for all contractor classifications.

What triggers the pollution exclusion for contractors?

The standard GL pollution exclusion (CG 21 49 or equivalent) excludes coverage for bodily injury, property damage, or cleanup costs arising from the dispersal or release of any "pollutant." Courts have interpreted "pollutant" broadly to include dust, fumes, chemicals, fuel, and other substances contractors routinely work with. Per ISO CG 21 49, any contractor whose work involves fuel handling, chemical applications, underground work, HVAC systems, mold remediation, or work at sites with known contamination should carry standalone contractor's pollution liability.

How does the experience modification factor (X-MOD) affect the overall package premium?

The X-MOD applies to workers' comp premium only — it does not directly affect GL, auto, or inland marine rates. However, underwriters view a high X-MOD as a proxy for poor safety management that may influence GL underwriting judgment and pricing. An account with a 1.40 X-MOD and significant GL losses will face adverse underwriting on both lines. An account with a 1.40 X-MOD but a clean GL history can often negotiate favorable GL pricing while the X-MOD works down through improved experience over the next three years.

Can I place a contractor in the surplus lines market without exhausting admitted markets first?

Surplus lines placement requires compliance with your state's diligent search requirements — typically two to three admitted carrier declinations documented in writing before a surplus lines policy may be bound. Requirements vary by state; some allow a single declination for clearly non-admitted risks. A contractor who has been non-renewed by an admitted carrier for losses or unpaid audit premium is a common surplus lines placement. For the full workflow — eligibility confirmation, E&S submission packaging for contractor accounts, wholesale broker selection, and quote evaluation — see how to place a hard-to-insure risk in the surplus lines market. For post-binding obligations including stamping office deadlines and tax remittance, see the surplus lines filing requirements guide.

Arvori helps insurance brokers manage commercial submissions, track subcontractor certificates of insurance, and coordinate multi-line renewals from a single platform — built for brokers who place complex contractor accounts and need the administrative work handled without the manual overhead.