Are you starting a construction business? Or perhaps you manage one?

Either way, you know the importance of having business insurance. In this high-risk industry, you also need workers compensation insurance.

Workers compensation insurance covers the costs associated with employee injury or illness. It can also usually cover losses should a worker suffer an injury at the job site and then die from that injury.

As you can see, this coverage is critical. So, how do you choose the right policy for your construction company?

Why You Need Workers Compensation

Most states require companies to maintain workers compensation insurance. It helps cover the costs of a worker becoming ill or getting injured while on the job. Without it, your company would be financially responsible for losses the individual incurs. This includes such items as medical bills and time lost at work.

Additionally, many construction companies must show proof of coverage to the investors they work with before they can secure a contract. Nearly all contractors must provide this information. It helps to reassure the client that ample protection is in place.

Keep in mind, this insurance protects you. Even if you do not have coverage, any incident like this is the financial responsibility of your company. Having insurance means you do not have to worry about lawsuits or costly settlements. Such settlements could otherwise bankrupt your business.

How To Choose The Right Policy

Work with your Rovner & Company agent to pick the right type of workers compensation coverage for your needs.

You need to consider any limitations or exclusions that apply to the policy. You also need to be honest about the number of people you have and the type of work your employees do. This ensures you always get a policy geared towards your business.

The value of coverage depends on many factors. Most insurance carriers can help you here. They can gather data on the average claims in your area from companies like your own.

If you are a new business, this is a critical first step. If you have a longstanding company, look back over the years. Which year had the highest number of worker injury claims? Be sure you have at least that much coverage.

Keep in mind that some states also mandate how much coverage you need. Standard policies are also available.

With workers compensation insurance, your team can go to work without risk. Your employees know you have coverage in place to protect them should they suffer an injury on the job. And, you do not have to worry if there is an incident. With this type of business insurance, you cut many of the most common costs associated with running a construction company.