Workers' Compensation Insurance
Required in nearly every state once you have employees — covers medical care and lost wages when a worker is hurt on the job, and shields your business from injury lawsuits.
Workers' compensation insurance covers medical expenses and a portion of lost wages when an employee is injured on the job — regardless of who's at fault. In exchange for that no-fault coverage, workers' comp also generally protects employers from being directly sued by an injured employee for a workplace injury, which is a major reason it's structured as a required coverage in most states.
Construction carries some of the highest workers' comp rates of any industry, because of the physical nature of the work — which makes accurate class-code classification especially important for controlling cost without under-insuring your crew.
Requirements for who must carry workers' comp — and whether owners/officers can be excluded — vary meaningfully by state, so your policy should reflect the specific rules where you operate.
Why It Matters
Common Claims Workers' Compensation Insurance Responds To
On-the-Job Injury
Falls, cuts, strains, and equipment accidents are common across nearly every construction trade.
Misclassification
Filing under the wrong class code can mean overpaying for years, or a coverage dispute after a claim.
Multi-State Crews
Employees working across state lines can complicate which state's workers' comp rules apply.
Uninsured Penalties
Operating without required coverage can carry significant fines and personal liability exposure.
What's Covered
What's Included
Medical Expenses
Treatment costs for a work-related injury or illness, from urgent care visits to ongoing treatment.
Lost Wage Replacement
A portion of an injured employee's wages while they're unable to work, per your state's schedule.
Disability Benefits
Compensation for temporary or permanent disability resulting from a workplace injury.
Employer's Liability
Protection for your business if an injured employee's family or a third party attempts to sue outside the workers' comp system.
Cost Factors
What Affects Your Premium
- Your workers' comp class code(s)
- Total payroll
- Claims/experience modification history
- State you're rated in
- Safety programs in place
Typical Range
Rates are set per $100 of payroll and vary significantly by class code — high-risk trades like roofing carry much higher base rates than lower-risk trades. A quote built on your actual payroll is the only accurate number.
Every business is different — the only way to get an accurate number is a real quote based on your trade, revenue, payroll, and claims history.
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Workers' Compensation Insurance Questions
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Free, no-obligation quote from a licensed agency — matched to your exact trade and class code.