WHAT DOES WORKER’S COMPENSATION INSURANCE COVER?
Worker’s Comp, as it is commonly known, covers five basic things: (1) Medical expenses, (2) Disability benefits, (3) Lost wages due to (4) work related injuries, or (5) work related illness.
DO I HAVE TO PROVIDE WORKER’S COMP?
Most states require employers to provide coverage, issued by a worker’s comp insurance company, for their employees. Generally, if you have employees, you need to purchase worker’s comp for them.
ARE MY SUBCONTRACTORS, OR INDEPENDENT CONTRACTORS COVERED BY MY WORKER’S COMP POLICY?
No. They are not eligible for worker’s comp and you are not required to provide coverage for them.
WHAT ARE THE BENEFITS OF WORKER’S COMP FOR MY EMPLOYEES?
If any of your employees are injured on the job, or become ill due to work related activities they will receive:
- Payment for their medical treatment,
- Payments for their lost wages while they recover,
- Payment for any permanent disability resulting from their injury, and
- The cost of retraining if the injured employee is unable to return to the same job he/she had prior to their injury.
WHAT OTHER RESPONSIBILITIES DO I HAVE AS A GENERAL CONTRACTOR WITH RESPECT TO WORKER’S COMP?
Covering your employees for their work related injuries or illnesses is pretty straight forward and the law requires it. However, as a general contractor, most workers at your active jobsites are not your employees. They work for your subcontractors. Click here to learn more about how important it is to make sure your subs provide worker’s comp for their employees.
WHAT CAN I DO TO MAKE SURE MY SUBCONTRACTORS HAVE WORKER’S COMP?
- Make sure you obtain a certificate of insurance (COI) from each of your subs showing their worker’s comp policy number, effective and expiration dates and the name of the insurer.
- Be sure to ask for a new COI before the expiration date shown in the current COI.
- If any of your subcontractors fail to provide a COI, you should not assume they have Worker’s Comp. If they don’t and one of their workers is injured on the job you could be exposed to a suit alleging negligence.
- Fortunately, most subs want to protect their workers. We can be a resource for them too. Have them give us a call.
Worker’s Comp is an important part of your overall risk management program. By providing coverage for your employees and helping your subs to protect their workers, you will be protecting the lives and livelihoods of those who have made you the successful builder that you are.
Call today at 1-866-454-2155 for more information, or click GET A QUOTE.
Worker’s Comp is not available in all states served by the RWC Insurance Advantage.