There’s one overriding reason why contractors in California need to provide workers’ compensation insurance to their employees – it’s the law.
California, along with almost every other state in the union, requires all employers, regardless of industry or number of employees, to carry workers’ compensation insurance (also known as workman’s compensation insurance and employer’s liability insurance).
For contractors, workers’ comp is even more critical due to the physical and risky nature of the business.
Workers’ compensation not only protects the employer and employee but also protects the party that the contractor is working with or for. For example, if a contractor is working directly for a homeowner, workers’ compensation coverage PROTECTS the homeowners in case the contractor’s employee is injured on their property. In the contracting industry, injuries are commonplace and the potential for serious injuries is much higher than in, say, an office environment.
If an employee does get seriously injured, the employer’s workers’ compensation will kick in to cover that employee’s medical costs so that the employer doesn’t have to. The insurance policy will also help replace a portion of the employee’s wages for a certain amount of time so that they are able to earn compensation while out of work.
Many of our contracting clients like the fact that their employees are protected in this manner, but there’s an even bigger reason to appreciate workman’s comp. It prevents employees from suing their employer for damages related to their injuries. This is a HUGE benefit for employers.
Imagine that one of your employees fell off a roof, broke his back and then sued you for five million dollars claiming lost wages, negligence and pain and suffering. Could your company easily recover if you lost that lawsuit or if you had to pay a high-priced lawyer to go to court to defend you?
We believe that workers’ compensation insurance is a small price to pay to protect your employees, yourself, and even your customers.
Also, workman’s comp doesn’t have to be as expensive as you think. Even though prices tend to be higher for contractors (due to the high-risk nature of their industry), we are able to offer our clients very competitive pricing on work comp. Specializing in the contracting industry has allowed us to make important connections and build solid relationships with insurers that allow us to get better pricing than the average insurance broker.
At Fusco & Orsini Insurance Services, we specialize in providing insurance solutions to contractors. Since we insure so many contractors and have created a niche in the industry, we are able to represent almost all workers’ compensation companies providing construction industry work comp in California. How does this help you as the contractor? We are able to provide options, and also very competitive rates.
We can also save our clients significant money by bundling insurance products. Almost all of our contracting clients also need general liability insurance and commercial auto insurance. Combining these and other necessary insurance products can result in big savings.
Even if you already have workers’ compensation insurance, we’d be happy to review your policy and see if we can get you a better option. It never hurts to see what’s available on the market.
Ready to talk workers’ comp with an independent insurance expert? Give Fusco & Orsini Insurance Services a call at (858) 384-1506 or visit www.foagency.com.