Yes. One closed claim rarely stops you from getting quoted, and a broker can usually find a workable price. The broker takes your account to the insurers that still write claims, with a short note on what changed since. Several claims, or one large claim still open, are harder. Who this is for: owners who had a claim, saw the renewal price jump, and want to know what a broker can actually do.
The short version
- One closed claim with a clear cause is a speed bump, not a wall. Most insurers will still quote.
- Several claims, or a large claim still open, push you toward specialty markets, which cost more but will write it.
- A short written note on what happened and what you changed is the most useful thing you can add to your application.
- Your claims history report has to go out with every quote request. Ask your insurer for it now; it takes a few days.
- Prices usually ease after three to five clean years. Shop again each year until then.
How much does one claim actually hurt me?
Less than most owners fear. Insurers expect a contractor to have a claim now and then. What they look at is the pattern: how many, how big, how recent, and whether they are closed. One closed claim of $15,000 from three years ago barely moves a quote. A $250,000 injury claim that is still open, plus two smaller ones, is much harder to place and will cost real money.
Every insurer reads your loss runs, which is your claims history report from your insurer. Ask your insurer or broker for them. Many states require your insurer to send them on request within a set number of days. Ask for five years. See how to get a loss run.
What can a broker do that I cannot do myself?
- Pick the right insurers. Some decline any account with a claim in the last three years. Others price the claim and move on. A broker knows which is which.
- Tell the story. The people who decide whether to quote you will read a short written explanation if one is attached. A broker writes it with you: what happened, why, and what you changed. Claims with a clear fix are priced better than claims with no explanation.
- Reach specialty markets. Specialty (surplus lines) insurers write what standard ones will not, and you cannot apply to them directly. A broker reaches them through a specialty middleman.
- Restructure the program. A higher deductible, the part of a claim you pay yourself first, can bring the total down.
What does a claim do to my price?
Illustrative ranges for a contractor with about $200,000 of payroll. Your result depends on your trade, state, and the size and type of claim.
| Your claims picture | Where the account usually lands | Typical price effect on general liability |
|---|---|---|
| One closed claim under $25,000, over 2 years ago | Standard insurers | Little to none, roughly 0% to 10% |
| One closed claim of $25,000 to $100,000 within 2 years | Fewer standard insurers | Roughly 10% to 30% |
| Two or three claims in 3 years | Mix of standard and specialty | Roughly 25% to 60% |
| A large claim still open, or a lawsuit pending | Specialty markets | Roughly 50% to 100% or more, plus a higher deductible |
| A claim on workers comp | Priced through your claims history multiplier | That multiplier carries the claim for three annual ratings, starting about a year later |
Workers comp works differently. A claim raises your experience modification, a multiplier on your workers comp price based on your claims history. In most states a rating bureau calculates it, either NCCI or your state's own bureau, not the insurer. In North Dakota, Ohio, Washington, and Wyoming the state fund does it. The claim does not show up right away. It usually enters the calculation about a year to eighteen months later, then stays in for three annual ratings, which is why an old claim can appear on a renewal long after it closed. If your payroll is small you may have no multiplier at all, because states only experience rate businesses above a premium threshold. Shopping helps less there, and closing claims fast helps more. See how to lower an experience mod.
What should I write in the note about my claim?
Keep it to half a page. Four parts:
- What happened. Plain facts. "An employee fell from a six foot ladder and broke his wrist."
- Why. Honest cause. "The ladder was on uneven ground and no one was footing it."
- What you changed. Specific and checkable. "We bought two platform ladders, added a ladder rule to the morning safety talk, and the foreman signs off on setups over four feet."
- Where it stands. "Closed in March, total paid $18,400, employee back at full duty."
Insurers price uncertainty. A note removes it. Your broker attaches it to every application.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A siding contractor in Massachusetts with five employees pays about $7,200 a year for general liability. A homeowner sues after water gets behind new siding and damages the framing. The claim closes at $62,000.
What went wrong: At renewal the insurer offers $13,900, nearly double, and adds a $5,000 deductible per claim. The owner assumes that is the market now.
What it cost: A broker pulled five years of claims history, wrote a half page note on the new flashing checklist the crew now uses, and sent one application to seven insurers. Four declined. Three quoted. The best was about $9,600 with a $2,500 deductible. Illustrative figures. The owner saved about $4,300 in year one.
The fix: The first renewal offer after a claim is one insurer's opinion, not the market. Shop it with a story attached.
Frequently asked questions
Q: Can a broker help me find affordable insurance after a claim?
Yes. A broker knows which insurers still quote accounts with claims, attaches a note explaining what changed, and can reach specialty markets if standard insurers decline.
Q: Will one claim make my insurance unaffordable?
Usually not. One closed claim of modest size often changes the price very little. Several claims, or a large open claim, are what push an account to more expensive specialty markets.
Q: How long does a claim stay on my record?
Insurers usually look at three to five years of claims history. The claim carries the most weight in the first year and fades after that. Moving back from a specialty insurer to a standard one is usually the single biggest price drop you will see, so ask your broker to try every year. See how often to shop around.
Q: Should I hide a small claim on my application?
No. The insurer will see it in your claims history, and an application that leaves it out can be grounds to cancel or deny coverage later.
Q: Does a claim on my workers comp raise my general liability price?
Not directly. Workers comp claims flow into your claims history multiplier, which affects only workers comp. Liability insurers do read your full claims history, though.
Q: What if my current insurer will not renew me at all?
That happens after a large or repeated claim. The account gets shopped right away to insurers that accept claims history, including specialty markets. See what to do when your insurer will not renew.
Q: Can I pay a claim myself to keep it off my record?
For a small property claim some owners do, but you must still report incidents your policy requires you to report. Failing to report one can give the insurer grounds to deny that claim later. The rules vary by state, so ask your broker first.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Shopping an account with a claim on it, with a clear written explanation attached, to the insurers that will actually price it fairly is a big part of our week.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.