Workers’ Compensation Insurance for Construction

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How does Workers’ Compensation insurance protect construction workers?

Workers’ compensation insurance helps pay for medical expenses and lost wages after a workplace injury. It can also help to protect your business from significant financial losses after an accident.

This is an especially important type of insurance for construction trades. Because workers frequently use machinery and power tools, move heavy building materials and work at construction sites, this industry sees a higher incidence of workplace accidents.

Construction workers’ compensation insurance is also legally required in most states if you have employees. Business owners who fail to comply with state workers’ compensation laws can face serious penalties, including fines or even felony criminal charges.

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Why do contracting businesses need Workers’ Compensation insurance?

Construction workers typically perform lots of physical work, which increases the risk of injury on the job.

In addition to the costs of medical care, an injury could lead to lost wages if it prevents an employee from returning to work.

Workers’ compensation can cover costs related to workplace accidents involving employees, such as:

  • A plumber drops a sink they’re trying to install and fractures their foot.
  • A landscaper slips on a steep hill and injures their back.
  • A roofer falls from a ladder and suffers a concussion.

Additionally, you may need to show a certificate of construction workers’ comp insurance to obtain a professional license, win a bid or comply with state laws. Many clients won’t consider hiring a construction worker without workers’ comp insurance.

Check out which states require construction licenses and insurance:

What does construction Workers’ Comp insurance cover?

Workers’ compensation protects construction businesses and can help to cover injury-related expenses when an employee gets hurt on the job.

If a construction worker sustains an injury while using a power tool, medical expenses and lost wages can add up quickly. Workers’ comp can help cover medical bills and the employee’s lost income while they recover.

This insurance can also provide compensation if an employee becomes permanently disabled or dies as the result of their injuries.

Workers’ comp can help pay for:

  • Medical expenses
  • Lost wages
  • Retraining
  • Permanent injury
  • Survivor benefits in the event of an employee death
  • Employer liability

Learn more about what workers’ compensation insurance covers.

What are some common risks faced by construction workers?

Here are some of the common risks construction workers could be exposed to at work:

Dangerous accidents

Your employee slips and falls on a wet floor when installing a pipe. Workers’ compensation insurance can help cover the medical bills.

Lost wages

One of your employees falls from a ladder and has to miss six weeks of work while their fractured leg heals. Workers’ comp insurance can help cover their lost wages during that time.

Permanent injury or death

Even if you take every safety precaution on the job, there’s always a chance that you or an employee could suffer a life-threatening injury.

In the unfortunate event of a serious accident which results in permanent impairment or death, workers’ comp can help cover long-term benefits, pay for burial expenses or provide survivor benefits to an employee’s family.

Employer liability

If an employee gets hurt on the job, they could decide to file a lawsuit against you claiming that your actions put them at a greater risk. Workers’ comp insurance can help cover your legal costs.

Workers’ comp insurance for construction workers can help to cover all these risks if you run your own business. Just be sure to add business owner’s coverage to your policy when you purchase it.

What are Workers’ Compensation construction classification codes?

There are construction class codes for workers’ compensation used within the industry to identify different types of work, such as electrical or concrete construction. These three- or four-digit codes help insurance companies estimate how much risk is involved and the premiums associated with each type of work.

Jobs that are higher risk come with higher premiums. For example, a construction employee who mainly does desk work is less likely to injure themselves than a construction worker who builds skyscrapers.

The classification codes are set mostly by the National Council on Compensation Insurance (NCCI) but some states use their own codes. It can be useful to look up the workers’ compensation class code for the type of construction work you do to get a better understanding of the risk involved.

How much does Workers’ Comp cost for construction?

NEXT customizes workers’ comp insurance to make sure you get the right coverage for your business.

Depending on how many people you need to cover, the type of work you do, the location of your business, and your claims history, construction workers’ comp rates can cost as little as $21 monthly for construction workers.**

Generally, construction workers pay a slightly higher rate due to the risks involved in their work. And the more employees you have, the higher you can expect your workers’ comp rates for construction to be.

NEXT offers tailored business insurance for construction workers

NEXT makes it easy to find convenient, affordable options for workers’ compensation insurance. Our simple and straightforward services help you find the coverage that’s right for you.

Everything can be done online on your schedule. Use any computer or mobile device to apply, compare insurance options, purchase coverage and get a certificate of insurance in just a few minutes.

Get an instant quote online today.

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
**The cost data presented here are based on minimum price, which is based on workers’ compensation insurance’s lowest monthly price for general contractor businesses operating in Texas. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.