If you’re hoping to become a respectable Plumbing Contractor, you need to first understand that you will desperately need workers comp. Workers comp is required by law in most states, particularly for companies which have W2 employees or 1099 contractors. In addition to this, even if by law you aren’t required to have workers comp, your client’s will most often request that you do. In order to become a big player in the game, makes sure you go through the trouble of purchasing workers comp insurance. Even if your business is a one man show, you will still most likely be required at some point to pick up a policy of some sort. Even when your state doesn’t require it by law, the homeowner who you do work for is still allowed to request that you get insured.
Being knowledgeable in workers comp laws will also play out to your advantage. Whether it’s just for the state you do business in, or a state that you travel into, you must learn to abide by the rules and regulations for each individual state. These regulations are enforced by each state’s department of industrial regulations, department of labor, department of insurance, department of employment, bureau of workers’ compensation or a similar agency type. If you are unsure about laws in a particular state be sure to research each states requirements, before you even think about stepping foot into the client’s home.
There are very few exceptions to whether or not you really will need workers comp for your plumbing business. Some contract employees, work for hire situations, and leased employees, might not need coverage, but again, this is rare. In order to safeguard your plumbing business, have each independent worker carry their own coverage. If you fail to do this, you might end up covering costs if they get hurt or injured. The only time we would even tell someone to consider not having a workers comp policy is if they have good health and disability coverage, and the risk is very low.
Lastly, you might be audited throughout the duration carrying workers comp, and this will depend on the varying number of employees, the type of coverage and the amount paid into premiums. Sometimes, the level of risk involved can change and premiums can either go up or down.
We want all of you plumbing contractors to thrive in this economy. Hopefully this article will leave you well equipped to deal with finding the right policy for your business. Be in the know, get contractors insurance today.