What you need to know: Workers Compensation Insurance in Construction

Your workers perform one of the most dangerous yet essential jobs out there. Keep them and your company safe with the right insurance. 

The construction industry comes with much physical labor and high injury risks, some of which can create a significant financial burden on your business and workforce. In 2022, construction worker trends shifted, presenting issues such as labor shortages and a labor pool consisting of candidates who are much older and/or less experienced. Moreover, the aging workforce can result in costly injuries as 40% of workers range from 45 to 64 years old. Additionally, a study concludes that over 44.5% of injury claims were from workers with less experience. 

Therefore, solid worker’s compensation insurance is essential and can help your workers pay for medical expenses, missed wages, temporary disability, and costs relating to their death. On the other hand, businesses can buy a policy to protect themselves financially from worker injuries, attorney fees, court fees, and/or settlements.

Tips on Keeping your Workers Comp Managed 

1. Invest in new and emerging loss risk control strategies such as ergonomics, employee wellness, and mental health. These programs can help improve workers’ comp results and employee satisfaction and retention. 
2. Ensure to document everything, invest in surveillance, and get statements from workers if an incident occurs. 
3. If an injury occurs, offer your employee help immediately and send them to the chosen physician. 
4. Think from a post-loss perspective! Should you utilize the carrier’s claims handling? Should you consider a third-party administrator? Should the claims handling be structured on a per-claim fee basis, a flat fee, or an LCF multiplier? Claims mismanagement can be costly and impact workers’ compensation loss history for years.

Workers’ compensation can help employees pay for:

1. Immediate medical help and medical emergency room costs. 
2. Ongoing medical and rehab costs.
3. Part of the employee’s lost wages when they cannot work. 
4. It may also help pay attorney fees, court costs, and settlements associated with a claim. 
5. Costs associated with fatal injuries such as burial and funeral costs. 
6. Permanent/temporary disabilities
7. Illness

Positive loss trends are primarily attributable to efforts by insurers and insureds to manage risk, including the use of managed care, enforcement of return-to-work programs, nurse triage, fee schedules, and telehealth. Construction firms should consider these options.

Worker’s Compensation Premium Calculations 

Paying for workers comp can sound tricky, but there is a straightforward formula to show you approximately what you might spend. Your premium can be added by classification rate, claims history, and payroll. 

The formula you can follow is: Classification rate x Experience modification rate x (Payroll / 100) = Premium

However, every state has different laws, requirements, and some states might have a monopolistic state fund. Below are some basic guidelines and essential facts you need to know, depending on your state location.

Georgia 

Employees who sustain an injury at work have the right to file for workers’ compensation. Workers comp can help pay for medical expenses and even a weekly disability check. It is highly advisable to talk to a lawyer whether you are a worker or the company owner to know your rights and responsibilities. To learn more, click here to access the Georgia State Board of Workers’ Compensation Bill of Rights for the Injured Worker. Below is a short list of what can be covered by worker’s compensation in the state of Georgia. 

• Income benefits
• Medical treatments and payments 
• Weekly disability check but no more than $675 weekly
• Fatal coverages and 2/3rd of weekly wages

Florida

According to the Florida Office of Insurance Regulation: “Florida law requires most employers to purchase workers’ compensation coverage. Under a workers’ compensation policy, employees are compensated for occupationally incurred injuries, regardless of fault. This coverage makes employers immune from some injury lawsuits by employees.” Below is a short list of what can be covered by worker’s compensation in the state of Florida. 

• Medical expenses 
• 2/3rd of your weekly wage
• Temporary disability benefits
• Death benefits

Puerto Rico

In Puerto Rico, Worker’s compensation is mandatory for every employee unless you have federal employees. Employers cannot insure through private carriers, self-insurance, and such. If any Puerto Rican employee gets hurt on the job and wants to file a claim, they can do so by following these steps. Worker’s compensation can cover the following in Puerto Rico:

• Medical benefits
• Temporary total disability compensation 
• Permanent total and partial disability
• Disfigurement

Fulcro’s benefits insurance specialists are here to guide and help you through the insurance process and answer any questions you might have. Click here to learn more about the different types of insurance solutions we provide to the construction industry. You may also contact our Benefits Practice Leader, Julio Ortiz, to make sure your business is providing adequate workers’ compensation insurance to your employees in case the unexpected happens at julioortiz@fulcroinsurance.com.