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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