Handling power tools all day is risky business, but workers comp for carpenters protects your staff in the event of a job-related injury.
Are you searching for affordable workers comp for carpenters?
Anytime you head to a worksite, you put your life on the line. Anyone who uses power tools knows the risks involved. One slip of the hand, and you could lose a finger. And falling from a second-story ladder is no walk in the park.
It’s no wonder why so many carpenters get hurt at work each year. But the right workers’ compensation insurance will ensure your employees get the medical care they need without bankrupting your business.
Buying handyman insurance isn’t always easy, however. Many insurers want to charge an arm and a leg for coverage. Others may refuse your application altogether.
Here at Coastal Work Comp Brokers, we want to change how you shop for workers’ comp coverage. Unlike other companies, we know how to find the right plan for businesses in any industry.
We specialize in all types of high-risk, high-mod industries, including carpentry. Our goal is to match you with the policy you need at a fair price.
What Are the Types of Insurance Available for Carpenters?
Entering a worksite without proper insurance coverage is like playing a game of Russian roulette. Carpenters get hurt all the time. Even a seemingly small accident can have lasting effects. Finding the right insurance is a must to protect both your business and your employees.
Any company that hires employees needs to purchase a workers’ compensation policy. Workers’ comp covers anyone on the payroll. It doesn’t matter if they work full-time or part-time.
This type of insurance pays for any bills that may arise due to an on-the-job-injury. Without coverage, your company would be liable to cover these expenses. However, a workers’ comp plan does not cover independent contractors.
These carpenters need to seek out general liability coverage. Always make sure your self-employed workers have a contractors insurance policy before heading out into the field. If an uninsured carpenter gets hurt, they could sue your company for damages.
How Much Are Carpentry Workers’ Comp Premiums?
No matter the type of business you own, all insurance companies base your premiums off a generic formula. It is:
CLASS CODE RATES (X) EMPLOYER PAYROLL (X) EXPERIENCE MODIFICATION RATE (=) PREMIUM
Every job has a class code rating designated by the National Council on Compensation Insurance. These 4-digit codes specify the type of work performed by employees. Many carpentry businesses fall under the class code 5503 – Carpentry NOC (not otherwise classified).
Your payroll also directly affects your premiums. For each $100 of payroll, you pay a set rate determined by the class codes. It’s essential to ensure you include every class code which applies to your line of work.
Insurers determine your experience modification rate based on your claims history. It’s like a credit score for your business. You start with a rating of 1, but the number increases with each on-the-job accident.
Why Are Carpentry Premiums High?
Premiums for carpentry businesses tend to be high. Carpentry accidents occur more frequently than in other industries. Working around hammers, nail guns, saws, sanders, welders, and ladders can be dangerous.
Proper training and safety protocols may reduce the likelihood of an accident. But even the most skilled carpenters sustain injuries on occasion.
Here are some of the most frequently reported carpentry injuries:
- Cuts, lacerations, and puncture wounds
- Slips, trips, and falls
- Repetitive stress injuries
- Muscle overexertion
- Severe eye injuries
- Limb and extremity amputations
- Concussions and traumatic brain injuries
Most of these injuries require a trip to the emergency room, and some may also need long-term care. Workers’ comp immediately pays for all medical bills following a work-related accident.
Depending on the extent of the injury, the policy will also cover rehabilitation services, time off work, or disability. In the worse case scenarios, insurance will pay for any funeral expenses.
Insurance companies don’t like to lose money. If an insurer only offers building contractor insurance to high-risk companies, they could end up paying out more than they make. For this reason, carpenters often pay higher rates for coverage than “safer” industries.
The Purpose of the Annual Workers’ Comp Audit
You don’t want to overpay for residential contractor insurance, and your insurance company doesn’t want to lose money. That’s why your policy requires an audit each year to verify your estimated payroll.
Some states even mandate this annual audit by law. The audit ensures the amount of coverage you get matches the premium you pay.
If you knowingly—or unknowingly—provide false information, you could receive a penalty. Underreporting, incorrect class codes, and mislabeling workers can all lead to costly fines.
Where Can I Buy Workers’ Comp Insurance for Carpentry?
When the time comes to buy a workers’ comp plan, it’s best to shop around for the lowest premiums. Be aware, however—obtaining coverage from a private insurance company isn’t always easy.
Although private insurers tend to offer more competitive prices, they don’t have to insure your company. If they feel the risk is too high, they may deny your application.
Even if a private company turns you away, it’s always possible to obtain insurance through the State Fund. The law requires the state to provide coverage to all businesses—even those with a less-than-ideal claims history. If you go this route, expect to pay higher premiums.
Carpentry businesses can also work with a professional employer organization (PEO) to obtain coverage.
At Coastal Work Comp Brokers, we make it easy for all high-risk, high-mod companies to find a policy that won’t break the budget. And in many instances, we can lower your current premiums by 30-40 percent.
We may be the best fit for your carpentry business if:
- You have 5-500 employees.
- You have a State Fund policy.
- You want to lower your WC premiums.
- You work in a high-risk industry.
- You have a high-mod rating.
- You were non-renewed by your current carrier.
- You have a lapse of coverage.
- You have losses.
- You stress over the annual audit.
- You want to avoid lawsuits.
When you choose Coastal Work Comp Brokers, you can rest assured we’ll match you with the best policy for your carpentry business. We’ll pre-qualify you for workers’ comp coverage and shop around until we find a plan that meets your business’s unique needs. Let us simplify the insurance buying process.
Find an Affordable WC Plan for Carpenters
Although carrying workers’ compensation is a must for carpentry businesses, you don’t want to go broke in the process. Since carpenters are more prone to work-related accidents, high premiums are standard.
We don’t believe you should have to pay exorbitant rates to get great coverage. We’ve already helped thousands of small- and medium-sized businesses lower their premiums. Imagine what you could do with a 30-40% savings!
Our brokers will help you find the most affordable plan. We specialize in all types of niche industries, including high-risk, high-mod, and multi-state risk. New ventures are also welcome.
Our pay-as-you-go plans make it possible to get the coverage you need at a price you can afford. Best of all, we can help your business avoid the annual audit.
Call 323-543-4141 for expert help in finding the best workers compensation plan for your business.