01
Medical care for on-the-job injuries
Emergency room, surgery, follow-up care, physical therapy, prescriptions, and long-term rehab when a crew member is injured while working. No deductible to the employee.
Line 02 · Workers' Compensation
Workers' compensation insurance for contractors
Required in every state except Texas the moment you hire a W-2 employee. Workers' comp pays medical costs and lost wages when someone on your crew gets hurt — and it limits your exposure to the employee's tort claim against you. We match your class code to the right carrier and manage the experience-mod through every renewal.
50+ carriers shopped · 2 hours quote turnaround · COI in under 60 seconds
01 Coverage scope
What workers' compensation insurance for contractors covers.
A standard workers' comp policy responds to the claim types below. Exact wording varies by carrier — we read each form so you don't have to.
02
Lost-wage replacement
Partial wage replacement while the injured worker is off the job — typically around 66% of weekly wages, subject to state maximums and waiting periods.
03
Permanent disability benefits
If an injury leads to permanent impairment, the policy pays scheduled benefits based on the body part or percentage loss as defined in the state fee schedule.
04
Death benefits for the family
Funeral expenses and ongoing benefits to the spouse and dependents if a worker is killed on the job. State statutes govern the benefit structure.
05
Employer liability (Part B)
Protects you from tort suits brought by an employee (or the employee's spouse) that fall outside the comp-exclusive remedy. $500K / $500K / $500K is standard baseline.
06
Legal defense & claim management
Carrier handles the whole file — claim intake, medical case management, return-to-work coordination, settlement negotiation, and appeal if contested.
02 Exclusions
What workers' comp does not cover.
Every policy has carve-outs. Understanding them up-front is how you avoid the “I thought that was covered” call after a loss. Pair Workers' Comp with the right sister lines and the gaps close.
Excl. 01
Owners who have excluded themselves
Sole proprietors, LLC members, and corporate officers often can exclude themselves. Excluded owners have no WC coverage for their own injuries — a gap that needs to be closed with health insurance or an owner-injury policy.
Excl. 02
1099 subcontractors with their own WC
True 1099 subs carrying their own WC policy are not covered on your WC. But if a sub is uninsured, the claim frequently falls to you (statutory employer rules vary by state).
Excl. 03
Injuries off the clock
Commuting to and from work, personal errands during the day, and intentional self-harm are generally excluded. The injury must arise out of and in the course of employment.
Excl. 04
Non-employee third parties
A client hurt on your job site is a general-liability claim, not a workers' comp claim. WC is strictly for employee injuries.
Excl. 05
Intentional acts & intoxication
Most states exclude injuries caused by the employee's intoxication or fighting at work, though the rules vary and carrier will investigate each claim.
03 Trade fit
Who needs workers' comp coverage.
How the same policy sits differently across the common trades we place. The underwriting market that fits you depends on the work you actually do on the job site.
T·01
General contractors
WC is typically required on every state contract. GCs also need to verify sub WC — most states make you the statutory employer if your subs are uninsured.
T·02
Electricians
Class codes vary by voltage and work type. Inside wiremen vs. line contractors get very different rates. Specifying correctly at bind is critical.
T·03
Plumbers
Plumbing WC rates are middle-of-pack. Carriers reward contractors with a clean loss run and a documented safety program.
T·04
HVAC contractors
Commercial HVAC involves rooftop work, refrigerant handling, and confined spaces — class codes need to match actual operations.
T·05
Roofers
Roofing is one of the highest-rated WC classes (fall risk). Rates can exceed $25 per $100 payroll. Carrier appetite is narrow — specialty market placement.
T·06
Concrete & excavation
Manual-trade class codes. Cement burns, back injuries, and trenching accidents drive claims. Carriers want documented safety protocols.
T·07
Framing, drywall, painting
Generally lower-hazard class codes. Fall risk from scaffolding is still the top loss driver — use fall protection, get rewarded at renewal.
04 Cost
How much does workers' compensation insurance for contractors cost for contractors?
Typical annual premium
$0.60 – $28+ per $100 payroll
The single most variable insurance line in construction. A clerical employee might be $0.20; a roofer might be $25+. Your premium is payroll × class rate × experience mod, adjusted for state assessments. The only way to get a real number is to shop your exact payroll structure against multiple carriers — which is exactly what we do.
| Factor | Impact | Detail |
|---|---|---|
| Class code (trade) | Major | Single biggest driver. Roofing at $15-$25 per $100 payroll; inside electrical around $3-$6; clerical under $1. Your class code IS your premium. |
| Annual payroll | Major | Premium is charged per $100 of payroll. More payroll = more premium, proportionally. |
| Experience mod (ex-mod) | Major | After three years, your historical claim frequency and severity produces an ex-mod that multiplies your premium. 1.00 is neutral; 0.80 gets a 20% discount; 1.30 adds 30%. |
| State | Moderate | States have monopolistic funds (WA, OH, ND, WY) vs. open markets. Rates, assessments, and statutes vary widely. |
| Claims history | Moderate | Five-year loss run determines carrier appetite and pricing. Multiple open indemnity claims narrow the market. |
| Owner inclusion/exclusion | Minor | Including owners adds payroll to the calculation. Excluding them drops it but removes their coverage. |
| Safety program & training | Minor | Formal safety program, OSHA training records, and drug testing can unlock 5-10% credits and move you into standard markets. |
05 In the field
Workers' Comp claim scenarios — from real contractor jobs.
Names changed, trades and outcomes preserved. These are the four workers' comp calls we actually field.
Case 01 · Roofing
A fall from a two-story roof.
A foreman stepped onto a soft deck section and fell twelve feet to a debris pile. Broken ankle, fractured wrist, three weeks off the job, two months of PT.
Outcome
WC paid the full medical course, replaced lost wages through the recovery, and coordinated return-to-work with modified duty. The owner didn't take a single out-of-pocket hit.
Case 02 · Electrical
An arc flash on a service upgrade.
Apprentice made contact with an energized conductor. First- and second-degree burns, one night in the hospital, five weeks of follow-up care and counseling.
Outcome
WC covered the full treatment, including the counseling. Carrier's safety consultant helped revise the company's lock-out/tag-out protocol and the next renewal stayed flat.
Case 03 · HVAC
A rooftop slip in winter.
Tech slipped on frozen condensate heading to a rooftop unit. Pulled back, herniated disc, out of work for ten weeks, two epidural injections.
Outcome
Wages replaced, medical paid, claim closed at twelve months. Experience mod ticked up slightly but stayed under 1.0 because of the rest of the loss-free history.
Case 04 · Framing
An injured carpenter couldn't return to the trade.
Veteran framer took a serious nail-gun injury to the hand. After surgery and rehab, grip strength couldn't return to what framing requires. Permanent partial disability determination.
Outcome
Scheduled PPD benefits paid to the worker; vocational rehab funded a training program to move him into estimating. Employer kept a skilled team member in the company.
06 Frequently asked
Frequently asked about workers' comp.
The questions contractors ask before they pick up the phone. If yours isn't here, the fastest answer is a call — (484) 444-3503.
Q.01Do contractors need workers' compensation insurance?
Every state except Texas requires WC once you have W-2 employees. Even Texas, while technically optional, leaves you exposed to unlimited tort liability if you don't carry it — and most general contractors won't sub to an uninsured shop. If you have even one W-2 employee doing trade work, you need it.
Q.02Do 1099 subcontractors need to be covered on my workers' comp policy?
If a 1099 sub carries their own WC and provides a certificate, they don't hit your policy. But if a sub is uninsured and gets hurt on your job, most states make you the statutory employer — meaning the claim falls on your policy. Always collect and verify sub COIs before they start work.
Q.03How much does workers' comp cost for contractors?
WC premium = (annual payroll ÷ 100) × class rate × experience mod. Rates range from under $1 per $100 for clerical to $25+ for roofing. A $1M payroll general contractor with a 1.00 ex-mod and a mid-range blended class rate typically pays $25,000 – $60,000 per year. Roofers and demolition contractors pay materially more.
Q.04What is an experience modification (ex-mod) and when does it apply?
After three years of claim history, NCCI (or your state's bureau) calculates an ex-mod — a multiplier applied to your premium. 1.00 is neutral; anything below 1.00 earns you a credit (fewer / smaller claims than peers); anything above 1.00 adds a debit. A 0.80 ex-mod saves 20% of premium; a 1.30 ex-mod costs 30% extra. It's the biggest single lever you can pull over time.
Q.05Can owners exclude themselves from workers' comp?
Most states allow sole proprietors, LLC members, and corporate officers to exclude themselves — which drops them from the payroll calculation and lowers premium. But excluded owners have no WC coverage for their own injuries. If you exclude yourself, make sure you carry health insurance and disability coverage to fill the gap.
Q.06What is a "ghost policy" and when do I need one?
A ghost WC policy covers a business with no employees (or only excluded owners), purely so you can provide a WC certificate to GCs that require it. It's cheap — often $800-$1,500 per year — and solves the common problem of being uninsurable-by-contract without actually needing coverage.
Q.07Will my workers' comp cover an injury driving to a job site?
The going-and-coming rule generally excludes ordinary commuting. But if you're driving between job sites, running an employer errand, or carrying tools to the site as part of the job, the injury is typically covered. Facts matter — each claim gets investigated.
Q.08How does workers' comp interact with general liability?
WC covers employee injuries. GL covers third-party claims. They are mutually exclusive. Every contractor needs both, and neither one substitutes for the other. GC contracts almost always require certificates showing both.
Q.09What happens to my ex-mod if I have a big claim?
A single large claim ages into your ex-mod calculation over three years. Severity hurts, but frequency hurts more — three small claims often raises the ex-mod more than one large one. This is why return-to-work programs and early claim management matter financially even for minor injuries.
Q.10Do I need workers' comp for family members working in the business?
Most states require WC for family employees the same as any employee, though some states carve out exemptions for spouses and minor children. Check your state's specific rule — we'll verify at bind.
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