Workers' Compensation Insurance

Workers’ compensation insurance provides medical, wage, and other financial benefits to employees who are injured or become ill on the job. This type of coverage is legally required for most construction businesses. Workers comp mandates and benefits vary by state.

Workers comp insurance covers injuries and illnesses that arise in the course and scope of the claimant’s job. Many claims are cut and dry, but some require a claim investigation to determine their compensability. For example, a worker who cut his hand on a table saw would be clearly covered by the policy. But an employee who twisted her ankle jogging and then agitated the injury on the jobsite would likely not see the same level of compensability.

Workers’ compensation insurance is mandated for many businesses by state law. The requirements for the construction industry are generally stricter than others due to the high-risk nature of the work. It’s important to know that if a subcontractor performing work for you is injured, you may be liable for the injury as if they were your employee.

Your business’s history of workers’ compensation claims can impact your ability to bid on and win contracts. Every organization has an experience modification factor that compares its loss history to that of similar businesses in the industry. If your company has a better-than-average claims experience, your e-mod will be less than one. If your claims experience is worse than average, it will be more than one. Many projects, including government contracts, require bidding contractors to have an e-mod less than one.

Usually, owners and officers are covered by a business’s workers’ compensation policy by default. However, many states allow them to exclude themselves from coverage. The laws governing officer exclusion vary by state. They may permit officer exclusion for companies with less than a certain number of officers, or have guidelines for specific industries like construction and nonprofit. Your agent can help you navigate your options for officer exclusion.

Controlling insurance spend is a top priority for general contractors. The best way to control costs is to get a thorough, accurate, and real-time view of your business’s risk.

How?

By partnering with construction experts to assess your risk and collect data using fleet management technology.

This information helps you improve safety, streamline maintenance, and boost efficiency. It also qualifies you for discounts based on safe operator behavior – and it’s only available from Leif.