Underwriting Guide
What Underwriters Ask About Contractors
Contractors are one of the most heavily scrutinized commercial classes. Underwriters focus on the scope of work performed, subcontractor controls, completed operations exposure, and loss history — all of which directly predict future claims. A well-prepared submission includes a detailed operations description and five years of loss runs.
General LiabilityWorkers' CompensationCommercial AutoInland Marine / EquipmentCommercial Umbrella
General Business Questions
What is the legal business name, entity type, and years in operation?
Why they ask: Establishes stability. Newer contractors (<3 years) face higher scrutiny and may be declined by some carriers.
What is the annual gross revenue and projected revenue for the next 12 months?
Why they ask: Revenue drives the GL premium calculation. Significant year-over-year changes trigger underwriter questions.
What states does the contractor operate in?
Why they ask: Out-of-state operations can affect eligibility. Some carriers restrict coverage to specific territories.
Is the contractor licensed and in what trade?
Why they ask: Unlicensed contractors are often ineligible for coverage. License type confirms what work is performed.
Operations & Scope of Work
Describe the work performed in detail — what exactly does the contractor build, install, or repair?
Why they ask: The operations description is the single most important underwriting input. Vague descriptions lead to coverage gaps or declinations.
Does the contractor perform any work at heights above 15 feet?
Why they ask: Roofing, exterior work, and high-elevation work carry elevated injury and liability risk.
Does the contractor work on residential, commercial, or both?
Why they ask: Residential construction carries higher GL risk from homeowner litigation. Some carriers exclude residential work.
Does the contractor perform any new construction?
Why they ask: New construction creates completed operations exposure that can trigger claims years after project completion.
What percentage of work is subcontracted out?
Why they ask: High subcontractor use without proper controls (certificates of insurance, indemnity agreements) creates uninsured exposure flowing back to the GC.
Does the contractor require certificates of insurance from subcontractors?
Why they ask: Uninsured subs create GL and WC liability for the GC. Underwriters want to know subcontractors are controlled.
Loss History
Provide 5 years of GL loss runs — all claims, open and closed.
Why they ask: Loss history is the single best predictor of future claims. Multiple claims or severity trends will affect pricing and eligibility.
Provide 5 years of WC loss runs with an experience modification rate (EMR).
Why they ask: The EMR quantifies the contractor's WC loss performance relative to industry average. EMR above 1.25 often triggers declinations or surcharges.
Are there any open claims or pending litigation?
Why they ask: Open claims affect current carrier relationships and may be excluded from new policies.
Vehicles & Equipment
How many vehicles are used in the business, and are they owned by the business or employees?
Why they ask: Business-owned vs. employee-owned vehicles determine whether a commercial auto or hired/non-owned auto policy is needed.
What equipment is used on job sites and what is its total value?
Why they ask: Tools and equipment need inland marine coverage; values under $10K may be included in a BOP, larger values need a separate policy.
Answers that raise red flags
⚠EMR above 1.25 — indicates above-average WC losses
⚠Multiple GL claims in the past 3 years, especially for completed operations
⚠Roofing or demolition work without specific coverage
⚠Subcontractors used without requiring certificates of insurance
⚠Significant revenue growth that outpaces prior underwriting (new scope of work)
⚠Prior coverage cancellations or non-renewals
Tips for presenting this risk favorably
✓Provide a detailed, trade-specific operations description — avoid generic language like "general contractor"
✓Include a subcontractor control program: require COIs, additional insured status, and written indemnity agreements
✓Attach loss runs with a brief narrative explaining any large claims and corrective actions taken
✓Highlight any safety programs, OSHA training, or certifications that demonstrate risk management
✓Separate the account into its component policies (GL, WC, auto, inland marine) with accurate figures for each
Collect all this information automatically
AgencyAssist sends your client a plain-English intake link and maps every answer to the correct ACORD fields — including all the questions above.