Illinois Workers Compensation Contractor Credit

Contracting Classification Premium Adjustment Program (CCPAP)


Contractors qualify to receive a work comp premium credit that is based on an employer’s average wage level. Generally, the higher the wage, the higher the credit.


Florida was the first state to approve the service back in 1984. Higher wage paying employers, represented by the construction and trade unions, felt they were being discriminated against due to the fact they had the same base workers compensation rate as lower wage paying employers. Employers with bigger payrolls paid a higher premium because the premiums is based on each $100 of payroll.    


The big kicker here is that you need a Workers Compensation Experience mod that is at or less than a 1.00 factor.   My April 8th post talked about opportunity costs and the pitfalls of not controlling your workers comp.  With workers comp premiums being a large portion of your variable costs with any job.  An additional 35% – 60% credit can make the difference of winning or losing that next bid.


Here's a recent Experience Mod and CCPAP Factor from one of our STELLAR clients - 32% Experience Mod Credit and a 40% Contractor Credit.

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