Workers’ Comp Rates and Coverage Policies for Industrial Construction

The construction industry is a fast-growing field, with 11.4 million U.S. workers employed in the field in 2019, according to the National Institute for Occupational Safety and Health (NIOSH). Also according to NIOSH, that year saw 991 construction-related fatalities, about one-third of which were related to falls.

It can also be one of the most dangerous fields to work in. In 2020, according to the Bureau of Labor Statistics, 20% of workplace deaths occurred in the construction industry, with thousands of nonfatal injuries occurring that kept workers off the job site for an extended period. Construction companies need to carry solid workers’ compensation coverage but finding affordable coverage that will protect you and your workers can be tricky.

Do I Need Workers’ Compensation Insurance for Contractors?

Workers’ compensation coverage is designed to protect employees when there is a workplace injury. Every state has its own laws and requirements governing what kinds of businesses must carry this coverage. For the most part, if you have full-time employees, you will likely need to carry workers’ comp. Even if you do not need it legally, however, it can be an important buffer to protect you against lawsuits when someone gets hurt on the job.

The Challenges of Obtaining Workers’ Compensation

If you are a small or new business, you may find that there are many challenges to securing the right workers’ compensation for your construction company. You may already face a lot of claims and issues, and you might find that workers’ comp coverage is hard to get, especially at a good rate. Your previous carrier may already have dropped you or walked away at the end of a contract.

Start-up companies with small numbers of employees and no prior coverage may have difficulty getting a plan in place. This also applies to high-risk industries like construction, and to companies with bad claims histories.

What Does Workers’ Compensation Insurance Cost?

Workers’ compensation rates vary wildly throughout the industry from one company to another. They depend on factors such as how many claims you have had in the past, how long you have been in business, the costs of prior claims, and many other factors. The best way to find out what workers’ compensation will cost you is to get a quote and talk to a workers’ compensation expert like SPLI. As an experienced PEO, we regularly facilitate workers’ comp programs through our A-Rating and can help you compare your options as you design this aspect of overall benefits plan.

How We Can Help

The first thing to understand is that SPLI is not an insurance company. As a PEO, SPLI has greater flexibility to onboard construction clients like you. Our unique programs, solid relationship with our insurance partners, and financial strength enable us to produce competitive quotes, even in high-risk industries like construction.

We have an internal claims department that monitors vendors and providers for you and works to resolve all claims. We offer return-to-work programs with light-duty assignments and fast claims reporting. We take a compassionate yet aggressive approach to pursuing a comprehensive solution that will save you money.

SPLI has decades of experience as a professional employer organization and has built time-tested relationships with insurance partners. We can take on high-risk clients, and even a catastrophic claim won’t make you ineligible. If you’re interested in learning more about how our workers’ compensation program can help you, download our 5 Benefits to Bundling Workers’ Comp Coverage & Payroll graphic, then request a quote today!