Workers Comp Insurance: What Every Contractor Needs to Know
Workers Comp: Required in Almost Every State
If you have W-2 employees, workers compensation insurance is legally required in 49 out of 50 states (Texas is the exception). Even in Texas, most commercial clients require it.
What It Covers
- Medical expenses for work-related injuries
- Lost wages during recovery (typically 2/3 of regular pay)
- Disability payments for permanent injuries
- Death benefits for families
- Legal costs if you're sued
What It Costs
Premiums are calculated per $100 of payroll and vary by trade:
| Trade | Rate per $100 payroll |
|---|---|
| Electrical | $3-6 |
| Plumbing | $3-5 |
| HVAC | $3-5 |
| Roofing | $15-30 |
| Painting | $5-10 |
| Landscaping | $4-8 |
| Concrete | $8-15 |
| General Contracting | $6-12 |
Roofing is the most expensive because it's the most dangerous. A roofer with $200,000 in annual payroll pays roughly $30,000-60,000/year in workers comp.
Solo Contractors
If you have no employees, most states don't require workers comp for yourself. But many general contractors and commercial clients require subs to carry it — even solos. A "ghost policy" (coverage with zero employees) costs $500-1,500/year and satisfies requirements.
How to Lower Your Premiums
- Safety program documentation (10-15% discount)
- Clean claims history (experience modifier)
- Shop multiple carriers annually
- Classify employees correctly (office vs. field)
Your next step: If you have employees and no workers comp, get a quote today. It's not optional — and the penalties for not having it include personal liability for injuries.