The Confusing Part
Small contractors feel punished for a string of minor claims.
That feels unfair until you see how rating tiers move.
How It Works
Frequent claims signal higher ongoing risk. Carriers move you into worse rating tiers even if each claim is small.
Severity matters too, but frequency often drives tier movement faster.
Where It Breaks Down
Switching carriers does not fix frequency if claim behavior stays the same.
The Tradeoffs
- File small claims and absorb higher future pricing.
- Fund smaller losses and protect your rating tier.
What Moves the Outcome
Risk Signals
- Claim frequency and incident patterns
- Jobsite controls that prevent repeat injuries
Coverage Structure
- Deductible and claim reporting practices
- Return-to-work practices that reduce claim duration
Market Context
- Appetite for higher frequency accounts
- Repricing behavior at renewal
Deeper context
For the market view, see Loss Cycles: Why Construction Tightens First.
How to Decide
If frequency is creeping up, invest in controls before shopping rates. If not, review pricing tiers.
Minnesota note: claim patterns and contractor timelines vary by county, so Twin Cities experience isn’t always a perfect proxy for outstate Minnesota.