Workers' Compensation Insurance
for Contractors, Builders & Other Construction Professionals

Construction and contracting professionals know all too well the risks of their industry. From on-the-job accidents to illnesses from handling hazardous materials, even the best-prepared carpenter can be the victim of unforeseen events.

If one of your subcontractors is hurt due to malfunctioning equipment or falls ill due to exposure to asbestos-containing materials (ACM), your construction and contracting business could be held responsible. Workers' Compensation Insurance is the protection construction and contracting business owners rely on to cover the medical expenses related to an employee's injury or illness or for the earnings the employee missed while recovering.

Read on to learn how you can protect your construction and contracting business and your employees from uncertainty with Workers' Compensation Insurance.

Workers' Compensation Insurance: Protecting Contractors

Workers' Compensation Insurance: Protecting Contractors

The dangers of operating industrial machinery, the exposure to potentially hazardous materials, and the toll of repetitive motion injuries are all risks contractors face daily. And while safety training and personal protective equipment are a necessary risk management tools, construction and contracting businesses know accidents happen all the time.

Workers' Compensation Insurance helps offset some of the risks you can't avoid by providing coverage that protects your construction and contracting business assets in the event of a costly lawsuit brought by an injured or ill employee. With an adequate policy, you know your construction and contracting business will have the necessary funds to cover court costs and settlements should unexpected accidents and lawsuits occur.

As a rule, Workers' Compensation is currently necessary for all businesses with employees, though the laws vary from state to state. For example, North Dakota, Ohio, Washington, and Wyoming have monopolistic markets, which means the state sets rates and operates a state-administered fund of Workers' Compensation Insurance.In Texas, private employers can choose whether or not to carry Workers' Compensation Insurance coverage.

Consult insureon's contracting-business insurance experts to determine how much Workers' Compensation coverage is appropriate for your business given your state's requirements.

How Construction & Contracting Professionals Benefit from Workers' Compensation Insurance

How Construction & Contracting Professionals Benefit from Workers' Compensation Insurance

While some contractors know this coverage as "workman's comp" or "workers' liability insurance," Workers' Compensation Insurance acts as a safety net for your construction and contracting business by covering the costs of…

  • Medical expenses relating to the employees' on-the-job injuries and work-related illnesses.
  • Wages your employee would have earned if they were able to perform their work.
  • Legal fees should your employee file a lawsuit against your construction and contracting business for their work-related injury or illness.

Because on-the-job accidents can quickly lead to lawsuits, most Workers' Compensation policies also include Employers' Liability Insurance. If your injured or ill employee sues your company, this policy will help pay for the legal costs of defending against the claim.

And legal fees add up quickly. Between attorney's fees and the time lost from work to attend court, your construction and contracting business could suffer a deep financial burden even if the court finds that your business is not responsible for the illness or injury.

Workers' Compensation Insurance for Contractors & Construction Professionals: Where to Start

Workers' Compensation Insurance for Contractors & Construction Professionals: Where to Start

As you consider your Workers' Compensation coverage for your carpentry business, keep the following tips in mind.

Familiarize Yourself with Your State's Workers' Compensation Laws for Contractors.

Most states require Workers' Compensation Insurance if your business has employees. For a labor-intensive field such as carpentry where the potential costs of work-related injuries are high, Workers' Comp coverage is always a wise investment. If you aren't sure what your state requires, or you simply want to learn more about Workers' Compensation Insurance for contractors, ask one of our agents today — you could start coverage within 24 hours of your initial application.

Construction & Contracting Business Owners: Do You Need Workers' Comp Coverage?

If you are the sole proprietor of your construction and contracting business, you may be exempt from state law mandating Workers' Compensation coverage. However, you may want to cover yourself anyway as added protection and income security in case you are ill, injured, or otherwise unable to work. Speak to an insureon agent to help you understand what your state requires and what makes sense for your construction and contracting business.

Construction & Contracting Business Risk Management Tips

Construction & Contracting Business Risk Management Tips

Though Workers' Compensation Insurance can shield your construction and contracting business from costly court battles and medical expenses due to unexpected employee injuries, there are more ways you can protect your business. Implement these basic risk reduction strategies to keep your construction and contracting business operating safely for you and your employees.

  • Make sure employees are trained in safety protocol. This may include asbestos awareness, machine operation, safe lifting and back safety, hazard communication, vision and hearing protection, waste management, respiratory protection, and first aid training. Provide workers with a Material Safety Data Sheet (MSDS) so that your employees know what hazardous materials they are expected to deal with and how to take the necessary precautions to protect themselves.
  • Ensure construction and contracting employees wear appropriate PPE. Personal protective equipment may include non-metallic toe safety shoes or boots, long pants, impact-resistant safety glasses, earplugs or ear muffs to minimize noise exposure, and a NIOSH-approved dust mask when performing particulate-generating work tasks.
  • Assess the worksite before your begin a project.Contractors are regularly exposed to hazardous substances such as wood dust, asbestos, and medium density fire board (MDF). While short-term exposure to such substances may result into respiratory complications, long-term exposure could lead to chronic respiratory illnesses including asbestosis. Keep your employees safe by assessing the work area and identifying the materials that contain asbestos before starting the job.

Still have questions about Workers' Compensation Insurance for your construction and contracting business? Contact an insureon agent today — we're happy to help!

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