Workers' Compensation

What is workers’ compensation insurance?

Workers’ compensation covers your employees when they’re injured on the job — medical treatment, lost wages while they recover, rehabilitation, and disability benefits. In exchange, it protects your business from most injury lawsuits by employees, which is why it’s called the “exclusive remedy.”

Construction is where workers comp matters most: falls, struck-by incidents, lifting injuries, and machinery accidents make the trades among the highest-claim industries. It’s legally required in almost every state once you have employees.

What it covers

• Medical expenses — treatment, hospitalization, and medication for work-related injuries and illnesses.
• Lost wages — partial wage replacement while an injured employee can’t work.
• Disability benefits — payments for temporary or permanent disability resulting from a workplace injury.
• Rehabilitation — physical therapy and retraining to get employees back to work.
• Employer’s liability — defense against covered employee injury lawsuits.

Who needs it

Any contractor with employees — and in many states, that includes part-time help and family members on payroll. High-labor trades like masonry, carpentry, landscaping, and excavation feel the cost most, which makes correct classification and carrier selection critical. GCs also typically require subs to carry their own workers comp.

How much does workers’ comp cost?

Premiums are calculated per $100 of payroll, with rates set by your trade classification, state, and claims history (experience mod). Misclassified payroll is the most common reason contractors overpay. We review your class codes and compare multiple A-rated carriers — start here.

Frequently asked questions

Do I need workers’ comp if I only have one employee?

In most states, yes — many require coverage from the first employee, and construction businesses often face stricter rules than other industries.

I’m an owner with no employees. Do I need it?

You may be exempt, but many GCs require subs to carry workers comp anyway — or they’ll deduct the cost of covering you from your pay. An owner-included policy often pays for itself.

What is an experience mod?

A multiplier based on your claims history compared to similar businesses. Keeping claims low earns a mod below 1.0, which directly lowers your premium.