Why You Need Workers Compensation Insurance
Unfortunately, getting sick or injured on the job is a fairly common occurrence. In fact, it is the reason why most states mandate that employers purchase contractors workers compensation insurance. Texas is the only state that does not require employers to purchase worker’s compensation insurance, and specific workers’ compensation insurance laws vary from state to state.
Contractors workers compensation insurance is not only for hazardous industries, and it is important to choose the right worker’s compensation to ensure a good fit for your construction business, no matter how big or small it is now.
What Workers Comp Insurance Does
Workmans comp insurance coverage can cover all of the following areas: injuries or loss of limbs, diseases like emphysema or repetitive motion, injury inflicted at work, medical treatment, rehabilitation needed in order for workers or employees to return to work, lost wages (up to two-thirds of employee’s salary), death, and liability insurance for the company for all lawsuits filed by injured employees.
Because the worker’s compensation insurance laws vary from state to state, some of the provisions mandate that employers with fewer than three to five employees are not required to supply coverage. There are also some states that give the employer the option to self-insure, which allows them to purchase insurance that cover the costs flowing from on-the-job injuries. It is up to the business owner/employer and the type of business they are in, as well as the laws of the governing state, to make this important determination.
As previously described, cheap workers comp insurance covers workplace and work related accidents and injuries for employees, which include performers, collaborators, and technical staff. It is a common misconception in the construction industry to classify any independent contractors as performers. As stated in several state guidelines, independent contractors are required to provide workers compensation insurance for themselves. There is a downside to this however – if the independent contractor you are working with does not comply with this regulation, you as the business owner are required to get workers comp policies on their behalf.
What Kind of Costs Are You Looking At?
If you are in need of low cost contractors workers compensation insurance, and you choose not to self-insure, it is up to you to figure out the exact coverage you need per employee, and the cost of the worker’s compensation insurance policy. You need to know what is the real workers comp insurance costs. What you will pay depends on the type of business you are in. There are more than 700 occupational codes that are used by insurers, and each carries a different premium amount. These codes are developed by the National Council on Compensation Insurance, Inc. The premiums are calculated per each $100 of the company payroll.
Finding the Right Workers Comp Insurance Company
When you seek out compensation insurance for contractor policies for your business, the insurance company should thoroughly assess your needs, analyze all aspects of your company’s exposures and review your claims history. The insurance company would then reach out to their network of carriers to locate the best program coverage for you, at the best possible price. Most reliable insurance companies continually monitor laws and regulations regarding worker’s compensation (as well as other types of insurance markets) in order to remain abreast of changes to identify trends that can save you money.
A good insurance company will also pay close attention to claims and patterns in an effort to control costs and exposure, two factors that are key to helping clients reduce high handyman comp insurance premiums. Typically, a reputable insurance company will offer programs that aim to help companies manage these types of processes.
Workers Comp Insurance Is In Your Control
Perhaps the most controllable insurance expense is the cost of workers comp premiums, because the losses that drive both direct and indirect program costs can be drastically reduced through aggressive claims management and risk exposure management. Your construction insurance company should ideally start this process by helping you custom design and develop a comprehensive, strategic program that will improve the entire worker’s compensation process and thereby reduce claims costs.
If you need assistance in securing fast workers comp, disability insurance and other types of contractors insurance, ContractorsInsurance.org is the premium service to use. We will help you find excellent, reliable coverage for the right price. For more information about workers compensation insurance check out our Workers Compensation FAQ’s or call one of our contractors insurance specialists.