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Workers’ Compensation for Construction & Trade Contractors

Accidents occur regardless of the safety of your business. There’s always going to be a chance when employees are injured or fall sick while working. In such instances, they can be entitled to workers’ compensation benefits. It is, therefore, essential to understand workers’ compensation coverage and its importance to employees and employer’s businesses. It’s also vital to ensure compliance with government regulations. Learn on for more information about workers compensation for contractors in the construction industry.

Background Information

Premiums imposed on workers’ compensation are calculated by the kinds of construction projects performed. Many businesses have numerous functions performed by various employees. Others have a few individuals who wear different hats in the construction project. It’s important to classify workers accurately especially based on the time spent in their jurisdictions since this could change your premium drastically.

Key Points to Note Regarding Workers’ Compensation in Construction

Construction, as well as trade contractors, are unique in different ways including the manner in which their job sites and co-workers change how they work. This can complicate the understanding of the limits of a contractor’s compensation policy. Subcontractors, on the other hand, are the contractor’s liability unless they are responsible for workers comp for contractors. At the same time, the general contractor should cover subcontractors in their worker’s policy. They should also need subcontractors to provide proof of insurance prior to reporting to the site. Since the job is physically demanding, the construction business and trade contractors are always are at risk.

Understanding Potential Hazards

  • Heavy construction equipment, precarious tools, and heights can make up for hazardous working conditions. Therefore, the construction, as well as the trade contractor’s industry, is diverse bordering the highly risky roofing tasks and projects to relatively safe plumbing projects.
  • Working at heights of above 16 feet, on various roofs or in trenches will impose a lot of risk to your business. If you perform outdoor tasks, you could be more exposed to the dangers of weather patterns including extreme heat and snow.

What Impacts Coverage?

  • If you’re a sole proprietor, and aren’t considered a general contractor by the local state or are excluded from the insurance coverage, you can opt to include yourself.
  • If you’re a corporate officer, you’re considered an employee. Therefore, you’re included in the coverage. But you may have to be excluded under various circumstances.

Workers’ compensation insurance provides coverage for employee’s medical expenses after an injury or illness at the workplace. It could also mean replacing the wages of the employees if they are unable to serve while recovering. In exchange for accruing these benefits, workers waive their rights to sue business owners. The cover also applies to injuries that occur as a result of workplace responsibility.

What It Takes to Sign Up

Signing up for worker’s compensation depends on the employer’s business location. While some states recommend you to purchase this coverage through private insurance firms, others need you to buy it via a state-run insurance plan.

If your employee falls sick or becomes injured at your workstation, you should provide them with a claim form. Check with the Department of Labor to establish if your employee must file a separate claim and contact us for more information regarding workers compensation in the construction industry.