Finding affordable workers’ compensation coverage is a difficult challenge for every general contractor and construction manager. This task becomes more daunting because they are typically working with independent contractors that bring together many subcontractors to get a job done.
At the end of the day, finding the right workers’ comp coverage is one of several risks facing firms and independent contractors. Other challenges include site security issues involving theft, delays from strong winds and storms, skilled labor shortages, and much more.
As an insurance broker and agent, you are in an excellent position to eliminate the stress general contractors and managers experience by helping this target market find the coverage they need.
Protecting Contractors with Workers’ Comp Insurance
You know that while every state has different requirements and state laws, workers’ comp coverage is necessary for any business with employees. But do your construction clients know this?
Take a moment to share with them that the reasons why they need workers’ comp. Since construction workers operate machinery that can be dangerous, all contractors face daily risks.
Share with your clients how Workers’ Compensation Insurance can offset some of the risks by acting as a safety net by covering:
- Medical expenses relating to on-the-job injuries and work-related illnesses.
- Wages their employee would have earned if they were able to perform their work.
- Legal fees should their employee file a lawsuit against their construction and contracting business for their work-related injury or illness.
Since construction is inherently risky, the general contractor or manager already knows they are considered hard-to-place and high risk. As the insurance agent or broker, you can build trust and value by offering to help construction management find the right policy options and offering free valuable information.
Documentation is the Best Construction Defense
The more tips and insights offer your construction clients, the better prepared they are before a possible audit occurs.
Consider sharing these insights:
- Thorough and comprehensive documentation can help decrease insurance rates.
- Documentation includes maintaining site inspection checklists, time cards, descriptions of completed jobs, and job classifications.
- Without this information, the contractor or subcontractor has very little data to prove its case in a job classification dispute, and inclusion or exclusion of workers from coverage.
- Proactively ensure workers comp insurance is in place offers the most comprehensive protection.
- Document that your employees are trained in specific safety protocols from machine operations to first aid training.
- Record signed paperwork from employees acknowledging the need to wear personal protective equipment (PPE) such as safety boots and glasses, etc.
To help you increase their trust in you, as well as their ability to document, we created a free site checklist you can offer to your construction clients.
Sure, they may already have something like this on hand. But the act of giving a free gift, like this Site Inspection Checklist, creates an environment of reciprocity where your construction clients want to return the favor by doing business with you in the future.
Download your free Construction Site Inspection Checklist now.
Need help finding a quick quote for your construction clients? Take a look at how we can help you find construction industry workers’ comp options.