Contractor Workers Comp Insurance Risk

Contractor companies like yours normally needs multiple workers on the payroll in order for the company to keep up with all of the work orders and requests that come in. Even brand new sole proprietors quickly find themselves needing to hire a receptionist to keep track of new appointments and paperwork while they’re out doing the actual work. Operating your contracting company without workers comp insurance coverage could be very risky for your business. Your company may operate in a jurisdiction that requires this coverage for instance, and you risk facing extreme hardship if you are taken to court by the government or a workers rights group. The risks are even more severe if something happens to one of your employees on the job.

Contractor Workers Compensation Insurance

workers comp for artisan contractors

Workers compensation insurance for contractors is often a legally mandated coverage in most localities of the United States. This insurance benefits employees and the companies they work for in several different ways. It is extremely beneficial to your company because it relieves you of most of the financial burdens that appear when one of your employees gets hurt while performing his normal work duties. That employee may file legal actions against the company in order to pay any medical bills, or to compensate him for lost wages if he needs time off to recover.

Likewise, workers compensation for contractors provides many types of benefits directly to the employee if they are hurt, or become severely ill as a result of the job duties they perform. Employees can file a workers compensation claim without needing to first prove their employer is at fault for the injuries sustained.

Several of the most common workers comp benefits for contractors and their employees include:

Medical and First Aid Care

Contractor workers compensation insurance coverage is the first thing that comes to mind when one of your company’s employees gets injured on the job. When the injuries or illness is minor, workers comp pays for first aid treatments such as getting looked at by emergency workers or first responders. Workers compensation also takes care of numerous other medical related expenses that often arise from more severe injuries. If your contractor company employee needs surgery, must stay overnight in the hospital, or must be treated by specialists, then workers compensation pays for these items.

Temporary Disability

Some injuries or illnesses require extended time to heal and recover. If your employee must be away from his normal job duties for more than three days, then he may qualify for temporary disability payments. Temporary disability is available through workers compensation for contractors coverage when the employee’s primary doctor declares he is unable to work for an extended period of time, and that inability was caused by a job-related injury. When on temporary disability, the worker receives a percentage of his normal pay to help make up for the loss in wages.

Permanent Disability

Permanent disability is a declaration by the employee’s physician that the will be unable to work in the same profession again. When an employee is determined to be permanently disabled, contractor workers comp insurance pays a percentage of his normal wages to him in the form of longer term disability benefits.

Vocational Rehabilitation

Some types of disability can be addressed by helping the employee learn a new vocation. When employees are able to learn new skills that are not hindered by the disability they incurred, workers compensation helps pay for the cost of the new education.

Death Benefits

When accidents on the job are severe enough to take the employee’s life, contractor workers comp insurance provides death benefits to the worker’s immediate dependents or qualifying family members. Death benefits often include covering the cost of burying the employee, and may also provide for lump sum settlements or ongoing payments to help the family through the loss of a primary wage earner.

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