Workers’ Compensation
Workers’ compensation pays medical costs and lost wages when an employee is hurt on the job, whether in the office, driving to a meeting or on a construction site.
Most states require it once you have employees. The rules on who counts, and when, vary by state and by industry.
What It Is Built For
Site visits
Slips, falls and equipment injuries during inspections, surveys and construction observation.
Office injuries
Repetitive strain, lifting and everyday accidents.
Travel for work
Injuries while driving or traveling on firm business.
Employer’s liability
Claims that the firm’s negligence caused an employee’s injury, covered under the same policy.
The Audit, and Why 1099 Contractors Show Up on the Bill
After the policy year ends, the carrier audits actual payroll, usually asking for payroll records, quarterly 941 filings and a list of subcontractors. The difference is billed or credited, often during the next policy year.
Collect a certificate from every subcontractor before they start, and keep it for the audit.
We help clients prepare those.
The Freelance Architect.
A small firm pays a freelance architect $50,000 over the year as a 1099 contractor. At audit, the carrier asks for the freelancer’s workers’ compensation certificate.
If the freelancer has their own policy, the payments are usually left out. If not, the carrier may add the $50,000 to the firm’s payroll and bill the extra premium.
Hypothetical example for illustration. Coverage for any claim depends on the policy terms and the facts.
Workers’ Compensation: Common Questions
Do I need workers’ compensation if I have one employee?
In many states, yes. Some set a minimum number of employees, and construction-related work often has stricter rules. We confirm the rule for your state.
Why is my premium based on payroll?
Workers’ compensation is rated per $100 of payroll by job class. Office staff and field staff carry different rates, so classifying people correctly matters.
What is a waiver of subrogation?
Your insurer gives up the right to recover from the owner or GC after paying a claim. Many contracts require it.
Can owners exclude themselves from the policy?
Often, depending on the state and how the firm is organized. Excluding yourself lowers the premium but removes your own coverage. If you visit job sites, it is worth thinking twice.
Do I have to report every new hire?
Usually not right away. New payroll is picked up at the audit. Tell us about big changes so the estimate stays close and the audit bill stays small.
Is workers’ compensation the same as disability insurance?
No. Workers’ compensation covers injuries from work. Disability insurance is a separate product for illness or injury anywhere.
Tell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.