Restoration Contractor Hired & Non-Owned Auto: Pricing Methodology

The unit of exposure behind Restoration Contractors Hired & Non-Owned Auto pricing

For Restoration Contractors, Hired & Non-Owned Auto premium is calculated per employee + flat hired-auto factor. That is the unit of exposure carriers use to scale premium against the size of the operation. ISO maintains the rating framework most carriers start with, and each insurer layers on its own loss-cost multiplier.

Why the unit matters: a restoration contractor with twice the exposure unit will pay roughly twice the base premium, all else equal. If you understand the rating basis, you can predict how operational changes (revenue growth, headcount additions, fleet expansion) will move premium at renewal.

How are ISO class codes assigned to Restoration Contractors?

ISO classification is the first underwriting decision on a Restoration Contractors Hired & Non-Owned Auto submission. The class code drives the base rate and signals which carriers will compete for the account. Different carriers see different classes as in-appetite, so the class choice cascades into the entire placement.

If a restoration contractor has been with the same carrier for years, the class code on the binder may not have been reviewed during that time. Underwriting habits drift, and a class re-review at renewal often surfaces a cleaner classification that produces a meaningful rate credit.

What happens at policy audit for Restoration Contractors on Hired & Non-Owned Auto?

At policy expiration, the carrier audits the restoration contractor's actual exposure for the past year. The rating basis used at audit is the same one used at issuance — per employee + flat hired-auto factor — applied to the documented actuals.

For Restoration Contractors, audit accuracy matters because errors compound. An over-estimate at binding overpays for a year; the audit returns it. An under-estimate underpays for a year; the audit owes it. Either way, the policy ends at the correct net cost; the question is just cash-flow timing.

Restoration Contractors experience-mod mechanics

The experience modifier compares a restoration contractor's actual three-year paid losses to the expected losses for the class. A modifier of 1.00 is neutral; below 1.00 is a credit (better than class average); above 1.00 is a debit (worse than class average).

The mod multiplies through the base rate, so its impact is direct. A mod of 0.90 produces a 10% premium reduction; a mod of 1.20 produces a 20% premium increase. For Restoration Contractors, the mod is one of the largest single inputs to the final premium.

How do state rate filings affect Restoration Contractors Hired & Non-Owned Auto?

State rate filings are the regulatory infrastructure behind Restoration Contractors Hired & Non-Owned Auto pricing. Each state's insurance department reviews and approves (or rejects) the rates carriers file for use in the state. The approval process and resulting rate changes affect every policy in the class.

States with heavy industry activity in specialty trade tend to have richer carrier competition and tighter rate oversight. States with low activity may see slower competitive pressure and more carriers exiting the market in hard cycles.

What changes at renewal for Restoration Contractors on Hired & Non-Owned Auto

The renewal-time recalc on Restoration Contractors Hired & Non-Owned Auto captures everything that has changed in the year between policies. New rate filings, your new exposure, your new loss experience, and any operational changes you disclosed all feed into the new premium.

If the renewal number surprises you, ask the broker for the line-by-line breakdown: base rate change, exposure change, experience-mod change, schedule-rating change. Each line is auditable. An unexplained renewal jump usually points to one of those factors moving meaningfully.

How carrier loss-cost multipliers move Restoration Contractors Hired & Non-Owned Auto pricing

Two carriers can quote the same restoration contractor on Hired & Non-Owned Auto and produce premiums that differ 15-30%. The difference comes from carrier-specific loss-cost multipliers (each carrier's adjustment to the ISO base rate), schedule-rating philosophy, and target loss ratios for the segment.

Some carriers actively pursue specialty trade business and price aggressively for it; others see the segment as marginal and price defensively. Knowing which carriers are currently in either bucket is the broker's job — and it materially affects which markets to target.