Buying workers’ compensation for:

Construction and Trade Contractors

Construction and Trade Contractors

What to Know

  • Construction and trade contractors are unique in the way their jobsites, co-workers and employers change with each job they work on, which can make it difficult to understand the limits of a workers’ compensation policy.
  • Subcontractors are the liability of the general contractor, unless they carry their own workers’ compensation insurance. General contractors must cover subcontractors under their work comp policy, or require subcontractors to show proof of insurance before stepping on the jobsite.
  • Because it is very physically demanding, construction businesses and trade contractors are higher risk compared to other industries.

Potential Hazards

  • Heavy equipment, dangerous tools, heights and working outdoors can all make for potentially hazardous working conditions. The construction and trade contractors industry is diverse, ranging from the highly risky roofing jobs to relatively safe plumbing operations.
  • Working at heights above 15 feet, on roofs or in trenches will make your business a greater risk.
  • If you perform work outdoors, your level of risk could vary depending on your state’s climate and weather patterns (extreme heat, snow, natural disasters).

Work Class Codes

Many businesses have several work class codes that describe what their employees do. It’s important to classify each group of employees accurately because it could alter your premium dramatically.

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.