Accidents happen, no matter how much you prioritize safety in your construction business. And in the high-risk construction industry, an accident could easily lead to an employee injury. Workers' compensation insurance ensures you can take care of your most important business asset, the men and women who help you get the job done.
In the construction industry (in California), you can assume that you will be responsible for the WC premium (cost) for anyone you pay that does not have a contractor's license, such as an employee, 1099, family member or friend. Some insurance companies go so far as to charge you if your licensed subs don't have their own WC policy.
Your WC cost is based on a certain rate per $100.00 of payroll that your employee is paid. Some trades have higher rates than others, for example, roofing contractors. Note: there is no "general laborer" class code. If you aren't applying "laborer" payroll to a certain trade class code, the insurance company will most likely place that payroll in the "governing class code" for your business, which is usually the highest rated class code.
Also, there are better rates for those who have had prior WC coverage, sometimes one year, sometimes three. Your best bet is to maintain WC coverage year after year.
You can also get a "ghost policy" without payroll when you are required to have a policy to gain access to a jobsite.
Workers’ Comp Insurance
In the event of an accident, you can be prepared to protect your employees as much as possible, while shielding your construction business from the possibility of liability for employee injuries.
What Does Workers’ Comp Cover?
In the construction industry, it happens every day. A worker could slip off a ladder, fall from a roof, be struck by a falling object, or be injured by heavy machinery. If one of your employees is injured or becomes ill as a result of their job, workers’ comp benefits cover the costs of getting them well and back to work, including:
- Medical expenses
- Lost wages
- Legal fees, in the event of a lawsuit
- Disability benefits
As an employer, it’s important to provide workers’ comp for your employees. And in many states, employers are required to provide workers’ comp by law.
Workers’ comp doesn’t just benefit your employee, it also protects you from financial losses in the event an employee injury becomes a lawsuit. You can get your employees the care they need and deserve to get back to work, while protecting your business from hassles, headaches, and costly lawsuits.
In the construction industry, your employees risk their safety simply by showing up for work. Prevent accidents from happening by emphasizing a culture of safety, and be prepared for accidents with workers’ comp insurance so you can take care of the people who work hard for you.