Workers’ compensation insurance for drywall installers is a must. On-the-job accidents are very common in this industry. Dropping a heavy piece of sheetrock can break a toe, and improperly using power tools can sever a finger. Just one trip to the hospital adds up quickly. Even minor cuts and bruises come with steep medical bills, and more serious injuries can bankrupt your business. Carrying workers’ compensation is the law in most states. If you don’t have coverage, your injured employee may sue you for damages. But why do so many drywall companies operate without coverage? Simple—they can’t afford the premiums. Insurers categorize drywall as a high-risk industry. There are many on-the-job hazards in drywall. For instance, workers handle sharp objects and operate heavy equipment at every job. They also spend a lot of their time lifting oddly-shaped objects or climbing in tight spaces. If a worksite has poor ventilation, employees may breathe in dangerous particles or handle asbestos. These hazards increase the risk of getting hurt, and as a result, insurance costs more. At Coastal Work Comp Brokers, we don’t believe drywall companies should overpay for workers’ comp insurance. We can help any high-risk or high-mod industry find a more affordable plan. In many instances, we can lower your premiums by 30-40 percent.
The Top Causes of Drywall Work-Related Injuries
You never know when a drywall installer may hurt themselves at work. While many accidents result in minor injuries, others may leave a worker permanently disabled.
Here are the leading causes of injuries in the drywall industry:
- Repetitive motions
- Dust inhalation
- Lifting heavy loads
- Faulty equipment
Sheetrock installation is a specialized skill. Each sheet of drywall weighs between 50-120 pounds, and without proper training, accidents are common. Employers should teach every worker the appropriate techniques and safety protocols.
While training does reduce the risk of work-related injuries, it won’t stop them all. Even the most experienced drywall contractors can become the victim of an on-the-job accident. The only way to fully protect your employees is with workers’ compensation insurance.
What Types of Insurance Do Drywall Installers Need?
Drywall companies shouldn’t send employees into the field without adequate insurance coverage. Insurance not only protects your workers, but it also prevents your business from dealing with costly medical bills. Having coverage is a win-win for everyone—and in most cases, it’s also the law.
There are two types of insurance you should buy for your drywall company: general liability and workers’ compensation.
Here are the benefits of both:
- General liability insurance protects companies from a variety of work-related losses. Coverage includes property damage, customer bodily injuries, slander, and libel. Policies are usually affordable, and you may be able to purchase a plan for around $50 per month.
- Workers’ compensation insurance pays for all medical bills relating to an on-the-job accident. Your policy will also pay for rehabilitation, disability, or funeral expenses. It covers any regular employee performing work-related duties.
This type of insurance is usually more expensive. Your premiums depend on the number of employees you have and your claims history.
Professional insurance covers all of your regular employees. It doesn’t matter if your workers are full-time, part-time, salaried, or hourly—they will receive the same benefits. As long as you pay your premiums on time, you should remain in good standing with your insurance provider.
Drywall business owners should also consider buying other types of insurance. If you have a company vehicle, for example, you’ll need commercial auto insurance.
Commercial property insurance is also a good idea to protect your company’s assets. This type of policy covers a variety of incidents, including theft, fire, vandalism, and acts of nature.
Is Workers’ Comp Insurance for Drywall Expensive?
Workers’ compensation is a much-needed safety net in the drywall industry. If someone gets hurt on-the-job, the policy immediately kicks into action. Insurance should pay for any medical bills or lost wages related to the injury. It will also cover short- and long-term disability, rehabilitation services, or funeral expenses. Without workers’ comp, your company would foot the bill.
Coverage for drywall installers doesn’t come cheap. Any type of physical labor increases the odds of getting hurt. For this reason, premiums are often pricier than in other fields.
The National Council on Compensation Insurance (NCCI) has pricing guidelines for insurance companies.
The formula for drywall contractor insurance premiums is:
Class Code Rate (times) Employer Payroll (times) Experience Mod Rating (equals) Premium
Your class code is a 4-digit number assigned by the NCCI for your industry, and drywall installers have a class code of 5445. Companies pay a specific rate for every $100 of their employer payroll.
The experience modification rating (EMR) serves as a credit rating. It starts with a value of 1, and the number increases for every accident you report. Thus, the higher your EMR, the more your pay for workers’ comp coverage.
How to Buy Drywall Contractor Insurance
Although every drywall business needs workers’ compensation insurance, it’s not always easy to find. Many insurance companies avoid covering high-risk industries. The more accidents that happen in your industry, the more difficult buying insurance becomes.
And since drywall contractor injuries are common, you may find yourself hitting a brick wall. There are three places you can look to buy workers’ comp: private insurance, State Fund, and PEOs.
Private insurance is where most drywall companies look first. These insurers can help you find a custom plan that fits the needs of your employees. While this may sound ideal, not every company can get coverage.
Private insurers don’t have to sell you a policy. If they feel your industry is too risky, which is often the case for drywall installers, they may turn you away.
The next insurance option is the State Fund. Even if you are high-risk or have a high-mod rating, you can get coverage from the government. They will sell a policy to any company, no matter how many claims you have. The problem with State Fund insurance, however, is the price. These plans are often the most expensive out there.
Many high-risk businesses can’t afford their insurance premiums. That doesn’t mean they can forego buying compensation insurance, however. In this situation, teaming up with a Professional Employer Organization (PEO) may be the best option. PEOs know how to find the lowest premiums available.
Should you go with a PEO? Here are some questions to ask yourself:
- Do you have 5-500 employees?
- Is your industry high-risk?
- Would you like to lower your workers’ comp premiums?
- Are you ready to get away from the State Fund?
- Do you want to avoid a high deposit?
- Did your current carrier refuse to renew your policy?
- Are there gaps in your insurance coverage?
- Do you have any losses?
- Do you have a high experience modification rating?
- Are you tired of the annual audit?
- Would you like an insurance company that is also your partner?
- Do you want to avoid getting sued?
If you answered yes to one or more of these questions, then Coastal Work Comp Brokers may be the perfect fit for your company. We specialize in finding great workers’ compensation plans for small- to medium-sized businesses.
It doesn’t matter if a private insurer turned you down previously. We can still help you find affordable insurance. And with our know-how, we may even be able to lower your premiums by 30-40 percent
Does Workers’ Comp Cover Drywall Subcontractors?
Many companies in the construction industry hire subcontractors to help out. Drywall installation is no exception. As a business owner, you need to make sure you have enough workers’ compensation to protect all of your employees. But do subcontractors fall under this umbrella?
The answer is no. The government does not consider subcontractors to be regular employees of a business. Instead, they are independent contractors or self-employed. Anyone who falls under this employment label pays their own payroll taxes and insurance premiums.
Since your workers’ comp plan won’t cover subcontractors, they must buy general liability insurance on their own. If they don’t have insurance and get hurt at a job site, a subcontractor could sue your company for damages. To prevent this scenario, you should only hire workers who have liability coverage.
The Best Workers’ Compensation for Drywall Businesses
There are a lot of potential hazards in the drywall industry. Sending one of your employees to a site without workers’ compensation isn’t a game worth playing.
All it takes is one slip of the hand to send a worker to the emergency room. And if you don’t have insurance to cover on-the-job injuries, you’ll end up paying the medical bills yourself.
At Coastal Work Comp Brokers, our team of experts can help your drywall service find great coverage for an affordable rate. We specialize in workers’ comp solutions for a variety of small- to medium-sized businesses.
Our team works with both existing and new ventures from all high-risk, high-mod, and niche industries. Whether you have a lapse in coverage or have a multi-state risk, we can match you to the perfect policy.
We aren’t your typical insurance company. Instead, we become your partner. And with our pay-as-you-go plans, you can even avoid the annual audit. Our services are highly rated.
We’ve helped thousands of clients save on their premiums, and we’d love to do the same for you.
Call 1800-411-0733 for expert help in finding the best workers’ comp option for your drywall business!
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