Builders working across state lines
Multi state work adds cost in two places: the additional licences and bonds, and the workers compensation written for each state. The second is usually the larger number.
Roofing, excavation and anything at height price far higher than interior finish work. The single largest factor.
Workers compensation is priced per hundred dollars of payroll, so it scales directly with headcount and wages.
General liability is priced on revenue, so two contractors with the same headcount can pay very different amounts.
Every state has its own rates and rules. Working across a state line means reporting payroll there.
Claims and injuries follow you for years through your experience modification rate.
How much you sub out, and whether those subcontractors genuinely carry their own coverage, changes your exposure materially.
Contractors working across state lines are far more likely to receive an audit adjustment than single state contractors, and for a simple reason: payroll earned in one state gets reported under another state's rate. The premium was understated all year, so the correction arrives as a single bill. Reporting payroll by state from the beginning costs nothing extra and avoids the whole problem, which makes it one of the highest return administrative habits available.
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Tell us your trade, payroll and the states you work in. A licensed specialist will come back with real numbers.
