Workman’s comp. The two words as a contractor that you don’t want to hear. Someone’s hurt on the job, and now you have to deal with all of the paperwork and legal issues that go with it. It’s not fun for anyone, and it can be really confusing. Who is covered by your workman’s comp insurance, and do you even need it? We hope to clear up some of the confusion with these 2 things a general contractor should know about workman’s comp.
To Get It or Not to Get It
As a general contractor, figuring out who needs to be covered by workman’s comp insurance can get confusing. If you’re wondering whether or not to get it at all, the answer is a resounding yes. Most, if not all, states require workman’s comp insurance to cover employees. If you hire anyone to work for your business as an employee, you need workman’s comp insurance.
The confusing part comes when independent contractors and subcontractors are involved. Do they need to be covered by your workman’s comp insurance as well, or do they need to get their own? Truly, it depends on where you are. You will want to check your state and local laws to find out the correct answer. You should also get some legal advice and add a workman’s comp clause in every contract. Whether you provide it or not, this will help cover all of your bases.
Document, document, document.
As a general contractor, you already know this: you need to document everything. This principle extends to workman’s comp. Whenever you have an injury onsite, be sure to document everything. Always have an accident or injury report form ready and available, and fill it out as soon as possible. Take note of when the incident happened, what caused the injury, and any witnesses in great detail. It never hurts to have too much detail.
In addition to the accident or injury report form, you will also want to keep details of every job your team completes. Keep a detailed log of what is being completed each day and who is doing each task. You won’t always get an injury report as soon as it happens, and sometimes people can get injured doing something they weren’t supposed to be doing. This documentation will help verify what happened the day of the incident.
Focus On the Details
Workman’s comp is a serious issue, especially for a general contractor. Spend more time focusing on these 2 things a general contractor should know about workman’s comp and get rid of some of your other work. When you have details such as these to go over, you don’t have the time to sit down with a client and help them figure out how to finance their project. Instead, partner with HFS Financial. Send your client to fill out our 60 second application. We can quickly help fit them with the right contractor loan. Give us a call at 1-800-254-9560 to start. “You Dream It, We Finance It.”