Workers’ Comp Insurance: Why HVAC Contractors Need It And What You Should Know About it
The cost of doing business in the heating and ventilation industry has never been higher. Competition for new contracts is fierce, and it’s only getting more competitive by the day. With competition and operating costs at an all-time high, contractors need all the help they can get to stay profitable and run a successful business.
One meaningful way you can reduce operational costs is by working with your insurance professional on your portfolio and looking at your workers’ compensation insurance (WC). Workers’ compensation insurance will pay for the cost of employee medical and disability benefits if your employees are injured on the job. An HVAC contractor without workers comp insurance will have to pay for any employee medical or disability benefits out of pocket, which would end up being devastating to the company’s bottom line.
One of the main benefits of workers’ compensation insurance is that it allows you to protect your employees from injury or disability that results from their work. The coverage is triggered when an employee is injured on the job. The insurance pays the employee for their medical treatment and disability if they are unable to return to work.
In most states, employers are legally required to carry a WC policy. Workers’ compensation insurance is different from other types of insurance because it doesn’t try to predict if you’ll be sued or penalized. Instead, it is triggered by a specific event: an employee gets hurt on the job. The worker’s compensation insurance company then pays a set amount to the employee, regardless of who is at fault. If you would like some more information on workers’ compensation in general, please visit our Business Insurance 101 Article: Workers Compensation.
Why Do HVAC Contractors Need Workers Comp Insurance?
Another reason why HVAC contractors need workers’ comp insurance is to protect themselves from being sued if an employee is injured at work. If an employee gets hurt while they are working for you, they may be able to sue you for damages. If they do, they may claim that your business was negligent and that negligence caused the injury. With workers’ compensation being a no-fault coverage, it will step in immediately with the aim of preventing lengthy and expensive litigation affecting your bottom line.
How Much Should HVAC Contractors Expect to Pay for Workers Comp Insurance?
Workers’ compensation rates vary from state to state and carrier to carrier, among other demographics of your business. With WC, the rate of your policy will largely be based on the size of your payroll and the classification of your employees. Your office and administrative employees’ payroll will certainly cost a little less than your field technicians.
With that being said there are ways to ensure you are paying an optimal rate. The first is to make sure your employees’ payroll is classified correctly. Not only will this potentially save you on expenses it will also prevent any claims issues down the road. Workers compensation insurers tend to not like it if a field technician is injured, but 100% of your payroll is classed as an office worker. Next would be to work with an independent agent. Independent agents have access to numerous workers’ compensation markets and will be able to place you in the best fit for your company.
How Can I Find Out More About Workers’ Compensation For My Business?
Contact The Staples Agency when you’re prepared to talk in greater detail about workers’ compensation and effectively safeguarding your company. We are an independent insurance agency that works tirelessly for our clients, and our team of certified WorkComp professionals will be able to offer appropriate guidance for your HVAC company and set you up for the best safeguards and financial benefits, thus helping you stay profitable and well protected.