Workers’ Compensation For Contractors

Workers in a contracting business face greater risks compared to your average employee. They may have to perform high risk duties, exposing themselves to hazardous materials, industrial machinery, or heavy equipment. Having workers’ compensation insurance will protect a contracting company’s workers from accidents during work. Here are some things you need to know about workers’ compensation insurance for contracting businesses.

Do I have to buy workers’ compensation insurance?
In most states, it is mandatory for contracting businesses to purchase a workers’ compensation insurance. Your company may be exempted from this law however, if you only have 3 to 5 employees, depending on the state where your company operates. However, rules aside, it is highly recommended for contracting companies to own this policy, because they would be the one responsible for the workers’ injuries during work or worse, end up facing lawsuits.

What does it cover?
A workers’ compensation insurance will give provide coverage for:

1. Medical expenses to treat bodily injuries inflicted to your workers during work.
2. Replacement of lost wages to give your workers income when they aren’t able to earn because they’re having their injuries treated.
3. Legal fees arising because of lawsuits from your workers due to their injuries.
4. Rehabilitation to help workers deal with their disability gained from their jobs so they can go back to work.
5. Disability benefits will give employees with permanent injury a part of their income.
6. Death benefits provides income for the family of your workers as well as burial costs if they are involved in a fatal accident.

How much does it cost?
The price of workers’ compensation insurance highly depends on what kind of job does your contracting company perform. However, bear in mind that workers of contracting companies are more exposed to accidents that can lead to both injuries or even death compared to a regular employee working in an office. So, it’s just natural that the amount your company would need to pay would be higher. It’s best to consult your insurer to know more about the costs.

A workers’ compensation insurance provides only one of the coverages a construction company would need. There are other coverages that you may need to learn and attain to maintain the success of your contracting company. Feel free to contact one of our agents to know more about the coverages your company would need.

At CSIS Insurance Services Inc., we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.

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