Worker's Compensation Insurance
Worker’s Compensation insurance protects your employees and your company from work-related accidents, illnesses, and even death. In the event of an accident, worker’s compensation will protect your employees, while shielding your construction business from the possibility of liability for employee injuries.
Almost every state requires employers to have insurance that will cover medical costs and lost wages for workers who become ill or injured on the job. If you don’t possess workers compensation insurance, you could be held liable for these costs, fines or penalties by the state.
Even in the safest workspaces, injuries can happen. As an employer, you are responsible for your employee's medical costs if they suffer a job-related injury, regardless if your employee has health insurance. Your employee is also entitled to a chunk of their regular wages while they are unable to work due to their illness or injury. If you have workers’ compensation insurance you can easily cover these costs, if you don’t, you will be paying these costs and fees out of pocket.
When Do Business’s Need Worker's Compensation Insurance?
- Your company will need Worker’s Compensation insurance when you are ready to hire your first employee.
- No employees, no problem, at PBIB, we offer an affordable “Ghost Policy” that you can purchase before hiring an employee. This comes in handy when you’ve been asked by a potential client to provide proof of worker’s compensation insurance without having an employee. This helps you secure bigger contracts with clients and sets up the future of your company’s growth to hire employees.
What Does Worker's Compensation Cover?
In the construction industry, workers compensation claims come in every day. If one of your employees is injured or becomes ill as a result of their job, workers’ comp benefits cover the costs of getting them well and back to work, including:
- Medical expenses
- Lost wages
- Legal fees, in the event of a lawsuit
- Disability benefits
- Death benefits
Workers’ compensation doesn’t just benefit your employee, it also protects you from financial losses in the event an employee injury becomes a lawsuit. You can get your employees the care they need to get back to work while protecting your business from headaches and costly lawsuits.
In the construction industry, your employees risk their safety simply by showing up for work. Prevent accidents from happening by emphasizing a culture of safety and be prepared for accidents with workers’ compensation insurance, so you can take care of the people who work hard for you.
General contractors and project owners can protect their investments in a construction project during the course of construction with the right contractor’s insurance policy in place.
What Does Employers’ Liability Cover?
Employers’ liability protects the insured from employee injury related lawsuits up to limits of coverage:
- Legal defense costs
- Judgments and damages awarded
- Settlement offers
- Court-related expenses
Do I need Employer's Liability Insurance?
Yes, all business owners need employers’ liability insurance. It is included on most policies because it is legally required in most states. Here are the most common causes of employers’ liability lawsuits:
Loss of Consortium - thiis is generally filed by a spouse; the injured employee is no longer able to engage in marital relations due to the injury.
Third Party Over Actions - when a 3rd party sues your business for contributory negligence after your employee files a lawsuit against them.
Consequential Injuries - typically this claim comes from family members or spouses who claim bodily/psychological injuries as a consequence of the employee’s injury.
Injured Workers Rejects Workers Compensation - Some states allow injured employees to reject coverage and file suit for damages due to negligence.
Examples of Workers Compensation Claims:
- slip off a ladder.
- fall from a roof.
- be struck by a falling object.
- be injured by heavy machinery.