Answer to Question 1
An insurance policy is a two party-agreement in which the insurance company protects the insured from covered financial loss. A surety bond is a three-party agreement in which the surety guarantees the contractual performance of the purchased to a third party.
Answer to Question 2
Worker's compensation rates are determined based on the work classification of each employee as modified by the experience modification ratio or EMR. The EMR is based on the claims history of the construction company during the oldest three of the preceding four years.
