2 Important Things a General Contractor Should Know About Workman’s Comp

a computer monitor with a general contractor workman's comp application open

Workman’s comp. The two words as a general 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 two things a general contractor should know about workman’s comp.

To Get or Not to Get Workman’s Comp

As a general contractor, figuring out who needs to be covered by workman’s comp insurance can be boggling. 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.

While the paperwork can be cumbersome, workman’s comp only benefits your business. It helps cover your business should you or someone on the job get hurt and makes your business seem more secure and legitimate to your customers.

1. How to Get Workman’s Comp for Your General Contractor Business

To secure workman’s compensation as a general contractor in the realm of home improvement, the process typically involves reaching out to insurance providers specializing in such coverage. 

General contractors must assess their specific needs, considering factors like the size of their team, the nature of the projects they undertake, and regional regulations. Once these aspects are determined, the contractor can then approach insurance agencies that offer workman’s comp policies. It’s important to be transparent about the scope of work and the number of employees, as this information directly influences the premium and coverage. 

Establishing a strong relationship with a reputable insurance provider ensures that the general contractor and their team are well-protected in case of unforeseen accidents or injuries on the job.

2. Document, Document, Document

As a 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 on the day of the incident.

HFS: Your Partner for General Contractor Financing

Workman’s comp is a serious issue, especially for a general contractor. However, it’s just one of the many things that you will have to deal with in order to make your home improvement business a success. Contractor loans is another.

One thing you shouldn’t have to worry about is offering home improvement financing. How to offer financing as a contractor is easy. With HFS, we can help your customers find the financing they need for their home improvement projects. That way, you can focus on more important issues for running your business, like getting workman’s comp, and less on dealing with financing paperwork or waiting on stage funding from the bank.

Partner with HFS Financial today. Send your client to fill out our 60-second online inquiry with no effect on their credit score. “You Build It, We Finance It.”

2 Important Things a General Contractor Should Know About Workman’s Comp

HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.