Janitorial Contractor Workers' Comp With a Good Loss History
A janitorial contractor with a decent loss history is priced on three things: classification, the experience mod, and how clean the submission is. Cleaning contractors often assume workers' comp is expensive by default. The mod and the class code are where an account with a manageable claim history can separate itself.
Classification first
California janitorial work is classified under WCIRB code 9008, while NCCI states code janitorial services under 9014. Applying the wrong state's code is a classic error, and it can leave you on a class that does not describe the work. Our janitorial classification guide covers the differences and the codes people confuse with it.
How the mod works in your favor
The experience mod is built from roughly three years of your own claims. NCCI's experience rating plan uses policies effective between 21 and 57 months before the rating date and leaves out the current policy. Losses are split at a state-approved point: the primary portion reflects frequency and carries more weight than the excess portion, and a state accident limitation caps how much any single claim can count. An employer with better-than-average experience earns a credit below 1.00. In practice, a few small claims move the mod more than most owners expect, and one large claim does less damage than a pattern of many small ones.
What underwriters look for in a cleaning account
Payroll by class, whether subcontractors carry their own coverage, turnover and training, the types of claims on the loss run, and whether classification matches the work being done. Strains and slip claims are common in this class, so a loss run that stays small and closes quickly reads well.
Audit exposure
Cleaning contractors with subcontractors or mixed duties are audited closely. Documenting certificates of insurance and payroll by role reduces the risk of a surprise bill; see our guide to premium audit disputes.
What to send
A signed ACORD 130, currently valued loss runs, payroll by class code, the mod worksheet, subcontractor certificates, states of operation and a short description of your accounts and sites. Send the application and loss runs to proposals@cprbrokers.com or call (714) 928-3858.
Frequently Asked Questions
Is the janitorial class code the same in every state?
No. California uses code 9008 for janitorial services under the WCIRB, while NCCI states code janitorial work under 9014. Using the wrong state's code is a common mistake that can lead to a misclassified policy.
Does a good loss history really change the price?
Yes, through the experience mod and through which markets will look at the account. A mod below 1.00 is a credit, and a short, closed loss run is easier to underwrite.
What do underwriters look at on a janitorial account?
Payroll by class, subcontractor use, turnover, the claim types on the loss run, and whether classification matches the work actually done.
Can a janitorial contractor with a decent record still use CPR?
Yes. CPR is best known for hard-to-place accounts, but an account with a manageable loss history gets the same review: a complete file, read by a person.
