A: It depends. Workers' Comp laws vary from state to state. Nearly all US states require that businesses carry some sort of Workers' Compensation coverage. Some states have specific requirements for contractors and construction professionals. For instance, Nevada always requires general contractors who work in construction to cover their subcontractors, even if they are hired as independent contractors. By knowing your state Workers' Comp laws, you can make sure your business meets its legal requirements and has a way to pay for workplace accidents, injuries, lost wages, and potential lawsuits that can follow.
Laws vary significantly from state to state, so make sure to check insureon's guide to Workers' Comp laws.
How does Workman's Comp work?
Most employers (even if they only employ a few workers) will have to provide Worker's Comp for their employees. Your policy can cover medical expenses and lost wages when employees are injured during a construction project and forced to miss work.
Many policies also include Employer's Liability Insurance, which covers Workers' Comp lawsuits and settlements.
Insurance tip: Construction businesses can prevent injuries and save on their Workman's Comp insurance premiums by adopting OSHA and other workplace safety guidelines. OSHA also offers several valuable resources for small businesses, such as a Free On-Site Consultation Program.
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