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Are you a contracting business that has employees looking for Workers’ Compensation insurance? Or are you a business that has no employees but you need a certificate of insurance showing you have Workers Compensation Insurance to get a job or be be let on a jobsite. If so, our insurance team at ContractorsLiability.com® is ready to answer some common questions for you and provide you with a free quote as well.
In most States it is an employer’s legal duty to provide worker’s compensation insurance to cover all their employees.
The specifics of Worker’s Compensation Insurance can be confusing, but ContractorsLiability.com can help you understand the intricacies of this complex subject, why you need it, and what you need to do to get it at the lowest cost.
What is Workers’ Compensation Insurance?
It covers employees who become injured or sick because of the work they perform in the course of their employment. The possibility of Injury can be part of the job description, especially in high-risk jobs. Contracting positions such as roofing, high voltage electricians, and other high-risk construction jobs can leave employees at greater risk of becoming injured, disabled, or worse on the job. Even in low risk trades there is always the chance of an employee being injured in any number of ways. This is why workers’ compensation insurance is so important for contracting work.
Workers’ compensation covers:
- Compensation for Lost Wages
- Example: An employee is out of work for three months due to a work-related injury. Workers’ compensation inusrance takes care of the wages that they are missing out on due to their inability to work.
- Medical Benefits
- Example: An employee has broken a bone in an accident that is directly related to the work they do for you. A worker’s comp claim ensures that their medical expenses for this injury are covered.
- Disability Benefits
- Example: An employee is out of work for an extended period because their body physically cannot do the work that is required of them any longer, and their inability to do that work is caused by their employment at your company.
- Rehabilitation Benefits
- Example: An employee suffered a crippling injury at work, and now requires rehabilitation services in order to be pain-free and potentially get back to work. Workers’ compensation covers the cost of rehabilitation.
- Example: An electrician employed under your company dies on the job. Worker’s compensation insurance will cover the cost of fees related to death benefits and funeral expenses.
- Coverage for Legal Defense
- Example: A former employee sues the company for injuries claimed on the job. Worker’s compensation will cover the cost of your defense.
Who Needs Workers’ Compensation?
Workers’ compensation insurance is available in all 50 states. However, each state has different regulations as to what type of employees are covered. Give us a call, to find out what type of coverage your business needs to meet the requirements of your State.
How Much Will Workers’ Compensation Cost?
The type of contractor you are will heavily influence the amount you pay for worker’s compensation. You should also realize that even within your business there will different risks for the jobs performed different individuals. For an example a roofing company may also employee sales people and office staff that never go on roofs. It is important that these different positions clearly pose different levels of risk for injury. You need to make sure that your payroll is not all assigned to a roofer class code as you will paying extra for nothing. This is because higher-risk positions also have a higher potential for injury. These other things also determine the cost of your worker’s compensation policy:
• The age of your company
• Your company’s safety track record
• What State your company is located
Here are some examples of cost versus risk:
- Office employee: low risk. Average around .30 per $100 worth of payroll for this employee.
- Contractor: Artisan Contractor plumber/painter. Average around $12 per $100 worth of payroll for this employee.
- Contractor High Risk. Such as a roofer. Average around $30 per $100 of payroll for this employee.
Why Choose Contractors Liability for Your Workers’ Compensation Needs?
Our agents have the knowledge and understanding of workers’ compensation. Policies distinguish themselves from others via state laws, business types, and many other different applications. Obviously, this could make obtaining the right kind of workers’ compensation difficult. ContractorsLiability.com takes the work out of understanding workers’ compensation insurance, by explaining to you how you can best cover your employees and yourself in the event of an accident.
Our services include representation by a licensed insurance agent, an exclusive selection of A rated insurance providers, and customer support prior to, during, and after your coverage.
Workers’ Compensation FAQs
Do I need to have worker’s compensation?
Different states have different worker’s compensation regulations. In many states, worker’s compensation is compulsory when you have more than a certain number of employees working a certain number of hours. No two states are alike when it comes to the coverage they require, so it is best that you speak with a licensed insurance agent regarding what is required and what is left to your discretion.
Do workers’ compensation rates change?
Yes is the simple answer. The rate you are charged is based upon your past safety record. The term in the insurance industry to define this is called an expereience modification. This number starts off in the beginning at 1. So if your premium for workers’ compensation is $20,000, you mutiple the $20,000 by your experience modification which is 1 and you get a premium of $20,000. Now let us say you have been in business for 3 years with no accidents your experience modification may now be .75. So $20,000 times your experience modification of .75 means you will only pay $15,000 in premium. That is a $5,000 savings. Conversely if you have a bad safety record your experience modification maybe 1.5. In that case your premium would be $30,000. $20,000 times your experience modification of 1.5. So it is clear to see manging your employees safely is not only the right thing to do but will also save you significant money on premiums in the future.
It’s easy to get overwhelmed trying to negotiate the terms of a workers’ compensation insurance policy, but ContractorsLiability.com is here to help. Contact us via web or call us at (866) 225-1950 for a 5-minute quote or for more information.
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