Understanding Construction Insurance Rates and Premiums

Course Details

This course is not subject to discount pricing.

Additional Credit Available:

Optional Insurance CE
Optional CPA CPE

Delivery Method: 


PDF Download: 


Provider of Record: 


Field of Study: 

Management Services

Exam Requirements

Proctor Required: 


Passing Grade: 




Please note: Adding Additional Credit may change exam requirements.

Course Description
Understanding Construction Insurance Rates and Premiums provides an introduction to commercial property and casualty rating techniques and concepts, with an overview of the rating process in general. It also offers a look at important insurance advisory organizations and the statistical information they use to develop rates in many of the standard property and casualty lines. 

Significant attention is given to the rating of commercial auto, commercial general liability, workers compensation (including experience rating and retrospective rating), and commercial property insurance, including a consideration of the rating rules that most insurers follow when rating these coverage lines. Attention is given to several methods of rating umbrella insurance and also to contractors equipment and builders risk insurance, lines of coverage where rating is less structured than it is for commercial auto and workers compensation. 

For each of the above topics of discussion, helpful tips are offered for an insured’s consideration to control or reduce insurance premium expense without sacrificing important coverages.

Learning Objectives
This is an intermediate-level course. Students who successfully complete this course will be able to

  1. recognize how insurers develop premiums for the types of property and casualty insurance that contractors buy
  2. identify the most common mistakes made in determining the premiums for each major line of insurance contractors buy
  3. differentiate between “loss costs” and “rates” and how they are determined
  4. identify some common ways in which umbrella policies are priced and how they differ
  5. recognize how information provided to underwriters affects the ultimate premiums paid and the importance of getting it right
  6. identify how a contractor’s record keeping practices can increase or reduce the premiums payable on workers compensation and general liability insurance
  7. recognize how experience modifiers are calculated, why it is important to check the calculations, and generally how it is done
  8. identify the advantages and disadvantages of retrospective rating and deductible programs
  9. identify coinsurance clauses in property, builders risk, and contractors equipment policies and how they penalize the insured when inaccurate values are reported to the insurer

                  A basic understanding of how premiums are determined for various coverages.

                  CPE Field of Study

                  Management Services

                  WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:

                  International Risk Management Institute, Inc. (IRMI) is the premier provider of risk and insurance continuing education and reference publications, and is considered the ultimate authority by leading insurance practitioners. Written by industry experts, IRMI courses provide the most up-to-date, practical and reliable information possible.