Frequently Asked Questions

Have a question about Builders Mutual? Click on one of the topics below for more information, or scroll through the whole page. If you have further questions, please Contact Us.

Monthly Self-Reporting Worksheet

  • How is my experience mod calculated and why might it change from one year to the next?
    Each new policyholder is assigned an experience modification factor. BMIC may use the experience factor that was previously assigned by an appropriate rating bureau within the past 12 months (if current factor is not available, 1.00 will be used) prior to insurance coverage with BMIC. The experience modification factor applies for the full policy term. A new experience modification is promulgated for each new policy period. If applicable, prior carrier experience is combined with BMIC loss experience. The NCCI (SC, TN, VA) or the North Carolina Rate Bureau (NC) promulgates all experience modifications.
  • How do you calculate terrorism coverage premium?

    Each state has a different rate. The calculation is outlined at the bottom of the Worksheet:

    • Total payroll in Column 3.
    • Divide the sum by 100.
    • Multiply the sum by the state-specific terrorism rate found on Line 15.
    • Round this figure to the nearest dollar and enter in Box 15, "Terrorism Risk Act."
  • Why did I receive 2 Worksheets in 1 month?

    You will receive 2 worksheets in the month your current policy expires and your new policy renews. For example, if your policy expires on March 15 and your new policy renews March 16, you will receive 2 worksheets (one for the term March 1-15 and one for the term March 16-31). You must return both to avoid cancellation!

Premium Audit

Online Self Audit

General Audit Questions

Workers' Comp Policies

  • Why is the volume discount different on final audit billing from what is shown on my monthly worksheet?

    The discount factor is based on actual premium. Be sure to review your estimated bill carefully at the time of policy renewal, as this becomes the basis for your future reporting forms.

  • I have been reporting and paying on my payroll monthly. Why do I have a balance at the time of audit?

    There may be several reasons:

    • The audit generated more payroll than you previously reported.
    • The allocation of payroll among the applicable classifications may be different than you reported.
    • A minimum premium may apply. Every classification has a minimum premium. If the payroll you reported during the year generates a calculated premium that falls below the specific minimum premium for the classification of your policy, then the minimum is applied.
  • Why am I being charged again for my Expense Constant?

    The Expense Constant is not being billed again. To confirm:

    • Add up all premium payments (excluding payments toward deposit) for the policy term. Add the Expense Constant. The total should match the Previously Paid amount shown on your audit bill.
    • Add the Expense Constant and Terrorism fee to the Normal Premium Amount (found on the second page of your audit bill). This is your Total Premium – from this, subtract the Previously Paid amount to arrive at the audit bill balance.

General Liability Policies

  • Why are my codes listed twice on my audit bill?

    General Liability has 2 sublines of coverage: Premises Operations and Products Completed Operations. The Premises Operations covers you while construction is in progress; Products Completed Operations covers you after construction is completed. These 2 sublines of coverage have different rates and are therefore listed separately on the bill.

HBA Membership (NC Only)

  • Where do I pay my HBA membership dues?

    Your HBA membership dues are paid directly to your local HBA. Payments are NOT made to Builders Mutual Insurance Company.

    We cannot make payments for our policyholders. Click here to Find a Local HBA for phone and address information.

  • Does Builders Mutual Insurance check to see if policyholders are current HBA members?

    YES, your local HBA notifies Builders Mutual when your membership has lapsed. We will notify you that you are out of compliance via mail. Your local HBA will notify us when your dues are renewed.

  • What are the benefits of HBA membership?

    The benefits of membership range from services that benefit your business to programs that enhance the business climate for home builders. HBA membership is an opportunity to build a network of professionals in the industry by sharing ideas with other builders, subcontractors, suppliers and service firms. These opportunities are in the form of monthly membership meetings, golf outings and other social gatherings. HBA membership is an opportunity to gain recognition and respect in the community and within the industry. As part of your membership dues, you automatically become a member of the local HBA, the NCHBA and the National Association of Home Builders (NAHB).

  • Why does Builders Mutual require an HBA membership?

    Back in the early '80s, builders couldn't get affordable workers' compensation insurance until the state home builders association (HBA) in NC found a way to fill the need. It established a self insured fund for its members. Nearly 15 years later, because of its success, the fund became Builders Mutual Insurance Company, and its territory expanded into other states. At Builders Mutual, we still serve the building industry exclusively, and we still understand the value of HBA membership. We were started by members, and we're here to insure eligible members.

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