Commonwealth Contractors Group Self-Insurance Association

Underwriting Guidelines

Our objective is to provide a stable profitable workers' compensation market for contractors and other construction related accounts. As the goal is to remain financially sound with the very best possible loss record, the Group's focus is on well managed, safety conscious businesses that are committed to a long-term, mutually beneficial relationship.

Eligibility

Type of Business

Only Virginia operations engaged in construction or construction-related occupations can participate.
Minimum Premium Size

Each member shall have a minimum annual manual premium of $5,000 ($10,000 Roofing Contractors).
Each member will be subject to a minimum annual manual audit premium of $5,000.

Common Anniversary Date

Although the Group has a common anniversary date of April 1, coverage for new members may be written at any time during the year. The premium will be pro-rated for the short-term and renewed on April 1 for a full year.
Maximum Employer's Liability Limit (Part B)

Location of Operations

This program can cover only premium generated by Virginia operations. However, risk, which may generate out-of-state exposures will be carefully reviewed on an individual basis. Generally, out-of-state operations will need to be covered elsewhere.
Minimum Requirements

NOTE: Also refer to "Conditional Eligibility". Generally, potential Group members must have at a minimum: a positive net-worth, been in business for three (3) years, not greater than a 1.25 experience modifier, and no high-rise work. See section labeled "Prohibited Operations" for a list of classifications that are not acceptable.

Conditional Eligibility

Due to a high risk potential, accounts with the exposures outlined below are conditionally eligible and will be carefully reviewed before being submitted to the Group Members' Supervisory Board for its approval: Only Virginia operations engaged in construction or construction-related occupations can participate.
Businesses which have been in operations less than three (3) years.

Known USL&H exposures for new applicants are "Conditionally Eligible", with the following criteria:

1. Minimum Annualized Manual Premium of $25,000;

2. Potential Annual USL&H Payroll must not exceed 10% of risk's Total Projected Annualized Payroll;

3. Class Codes with potential USL&H exposure must be the same construction class codes currently accepted within our Guidelines. Must not have "true" USL&H class codes, including but not limited to stevedoring, shipbuilding, etc.;

4. Good Loss History consistent with current guidelines;

5. Subject to a physical pre-inspection;

6. Must have appropriate safety programs and practices in place.
Businesses which are not experience rated or have a current experience modifier in excess of 1.25.

Businesses with a loss ratio of 70% or more in the current year and/or a cumulative loss ratio for three (3) immediate prior years exceeding 70%.

Any previously approved business which would like to activate its membership after the approved effective date.

1. If membership is sought more than 45 days (e.g. 05/16/00) after the previously approved effective date (e.g. 04/01/00), the business must submit an updated ACORD application if changes have occurred, and currently valued loss runs (within the last 45 days) which both identify and verify any workers' compensation claims which may have occurred since the previous submission date.

2. If membership is sought within 45 days of the previously approved effective date, a letter must be signed and submitted by a business (company) official (1) certifying that no workers' compensation claims have occurred since the previous submission date, or (2) explaining the details of the losses which did occur.

Prohibited Operations

Submission Requirements

Submission Guidelines

Substance Abuse Testing Guidelines

Application for membership in the Commonwealth Contractors Group Self-Insurance Association

Virginia Administrative Code - Title 14