Uninsured Subcontractor Charge Calculator
Estimate how much premium an auditor could add for subs who didn't give you a certificate of insurance, and see which certificates would save you the most.
Defaults follow a North Carolina example rule and are only a starting point. Every percentage is editable; your state or carrier may use different rules.
How the charge is figured (North Carolina example)
North Carolina's rule for uninsured subcontractors is a clear, published example of how this works:
- Complete payroll records for the sub: the sub's actual payroll is used.
- A documented labor amount (for example, the contract or invoice breaks out labor): the higher of that labor amount or the minimum percentage for the contract type.
- Neither: the full contract price.
| Contract type | Minimum % of contract price (NC example) |
|---|---|
| Equipment rental with operator | 33 1/3% |
| Labor and materials | 50% |
| Labor only | 90% |
| Piecework | 100% |
That amount is then treated as payroll and charged at the rate for the class the work falls under. Other states and carriers have their own rules, so confirm what your carrier applied by asking for the audit worksheet.
Tip: collect certificates before the work starts
- Get a certificate of insurance from every sub before they start, and check that the workers' comp policy dates cover the job dates.
- Keep a calendar reminder for each certificate's expiration date and ask for a renewal before it lapses.
- Keep contracts and invoices that separate labor from materials. Under rules like North Carolina's, that can lower the charge even without a certificate.
- Hand the auditor a complete folder: sub list, amounts paid, and a certificate for each one.
Already billed? Read how to challenge uninsured subcontractor charges, then follow the dispute steps.
Frequently asked questions
Why am I being charged for subcontractors?
If a subcontractor doesn't carry its own workers' comp, its workers may be treated as yours for coverage purposes, so carriers can charge premium on what you paid that sub. A valid certificate of insurance covering the dates of the work usually prevents that charge.
Where do the default percentages come from?
They are an example from North Carolina's rule for uninsured subcontractors: 33 1/3% for equipment rental with an operator, 50% for labor and materials, 90% for labor only, and 100% for piecework. Other states and carriers use different rules. Replace them with whatever your carrier or state uses.
What if I can document the sub's actual labor cost?
Under the North Carolina example, complete payroll records for the sub mean the actual payroll is used. A documented labor amount means the charge is based on the higher of that amount or the contract-type minimum. With neither, the full contract price may be used. Enter what you have and the calculator follows that order.
Can I still get a sub charge removed after the audit?
Often you can try. If you can get a certificate of insurance showing the sub was covered during the period they worked for you, send it to the carrier with a written dispute of that specific line. Whether the carrier accepts a late certificate depends on the carrier and state.
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