Can you safely send your employees to a construction site without workers comp for framers? Not if you don’t want an on-the-job accident to bankrupt your company.
Do you need to buy workers’ comp for your framing business? Having the right amount of coverage is the only way to protect your employees and yourself in the event of an accident.
After all, construction and building jobs are some of the most dangerous out there. While framing requires a lot of skill and talent, accidents can happen to some of the best workers.
Unfortunately, many framers discover buying compensation insurance isn’t always a walk in the park. Some insurers want to charge a small fortune, and others will deny your application altogether. Either way, you need to purchase a plan.
That’s why Coastal Work Comp Brokers simplifies the buying process. After we pre-qualify you, we’ll search high and low for the best options out there. Getting the best rates is always our top priority—we may even be able to save you 30-40 percent!
Getting a price on workers’ comp isn’t always an easy task. And no two framing companies will end up paying the same amount. Insurance companies run several numbers to come up with an estimate.
Here’s the general formula they all follow:
Class Code Rate (X) Employer Payroll (X) Experience Modification Rating (=) Your Premium
This formula seems simple enough, but there is still room for error. For example, many companies don’t list the right class codes on their insurance policy.
The National Council on Compensation Insurance (NCCI) assigns a 4-digit code to all job types. This code helps insurers determine the risk level for each industry. The class code for most framing companies is 5403, but this code may vary depending on the job description or location.
Class codes help insurance companies price policies based on risk assessment. High-risk industries end up paying more for coverage. For instance, framing is more dangerous than clerical work. Therefore, framing companies will have higher premiums than an office-based business.
How Much Workers’ Comp Coverage Do Framers Need?
Workers’ comp pays for many bills that may arise due to a work-related injury. Your policy should cover medical bills, lost wages, disability, and funeral expenses. Since these expenses can add up, you need to select a plan that offers plenty of protection.
When selecting a workers’ comp policy, you want to make sure you have enough coverage to protect your business. If you don’t buy enough, you may end up footing some of the bills after a work-related injury. However, you’ll end up overpaying if you select one with too much coverage.
Here’s what you should consider before making a choice:
Knowing the answers to these questions will ensure you only buy the coverage you need. The right policy will give you the peace of mind you need.
Framing companies that operate as a sole-proprietorship may be exempt from workers’ comp. To qualify for an exemption, you must be the only person on the payroll, and you cannot hire any employees.
However, you should double-check local rules before you assume you don’t need coverage. Every state has its own policies.
Even if you are exempt, you may still want to buy workers’ compensation coverage. It’s also wise to consider general liability insurance in case a subcontractor ever tries to sue your company.
Plus, a lot of customers won’t hire a business unless you can prove you have a framing license and liability insurance.
Although paying insurance premiums may seem like a hassle, it could save you later down the road. Too many companies lose everything simply because they put off buying liability or workers’ comp insurance. No one ever regrets having insurance when they finally need to use it.
Workers’ compensation insurance isn’t a one-size-fits-all product. You need a plan that meets the unique needs of your company. However, framers often struggle to find a policy that they can afford. You can begin your search in three places: private insurance companies, State Fund, and PEOs.
Private insurance companies are where most businesses go first for insurance quotes. While it’s possible to find a great plan with a private insurer, they may also turn you away. Private companies only want to make money, and since framing is high-risk, you may be too much of a liability to insure.
Even if you can’t get coverage through a private provider, you can also check out the State Fund. This government-funded option ensures all businesses can buy the required minimum coverage.
The State Fund won’t turn you down, even if you have a high-mod rating, gaps in coverage, or losses. However, you will end up paying more for a State Fund policy.
PEOs are a perfect match if you want to think of your insurance provider as a partner. They are the ideal choice for many small- to mid-sized businesses—even those in riskier industries.
Too many business owners put off buying workers’ comp because of the cost. High premiums keep them from protecting their employees. And the fear of an annual audit keeps them from shopping around.
Coastal Work Comp Brokers doesn’t believe compensation insurance should be cost-prohibitive. We are dedicated to helping our clients find the lowest rates available. We specialize in all types of niche industries, including high-risk and high-mod.
Whether you own a new venture or need multi-state risk coverage, we know where to look. Even if you have coverage gaps, losses, or a non-renewal, we will find your business an affordable plan.
Here at Coastal Work Comp Brokers, we offer convenient pay-as-you-go-plans. You’ll only pay for the coverage you need, and you won’t have to deal with that pesky audit every again.
We’ve helped thousands of small- and medium-sized businesses lower their premiums by 30-40 percent. Think of what you could do with the savings!
Call 1800-411-0733 for expert help in finding the best option for workers’ compensation insurance for framers.
