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.
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:
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:
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:
Learn more about what workers’ compensation insurance covers.
Here are some of the common risks construction workers could be exposed to at work:
Your employee slips and falls on a wet floor when installing a pipe. Workers’ compensation insurance can help cover the medical bills.
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.
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.
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.
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.
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.
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