As a framing contractor, workers’ compensation insurance is not just a choice—it is an essential part of your business structure. In fact, not having adequate workers’ compensation insurance in your insurance portfolio may bring in penalty fees from the state. To make things easier for you, this article explores the essential elements of workers’ compensation insurance for structural framing contractors, revealing its significance in protecting your staff and the company from unforeseen financial burdens.

Workers’ compensation is a form of insurance compensation that includes medical bills, income replacement, and recovery expenses for individuals who sustain injuries or fall ill while actively engaged in their work duties.

Essentially, it is insurance for workers dealing with disabilities, extending monetary aid, medical coverage, or a combination of both to those affected by job-related injuries or illnesses. Additionally, this framing contractor insurance offers financial support to the families of employees who tragically lost their lives while on the job.

Framing contractors depend on Workers’ Compensation to provide essential employee coverage. This insurance policy ensures that workers are protected in case of job-related injuries, offering a range of benefits to both employers and employees. Some key aspects of what Workers’ Compensation covers for Structural Framing Contractors include the following:

Medical Expenses: Coverage for medical treatments, surgeries, hospital stays and prescription medications required due to workplace injuries.

Wage Replacement: Financial support in the form of wage replacement benefits for employees unable to work temporarily due to injuries.

Rehabilitation: Vocational rehabilitation services to assist injured workers in returning to suitable employment.

Death Benefits: Financial assistance for the families of employees who tragically lost their lives while on the job.

Legal Protection: Protection from potential lawsuits by injured employees, as Workers’ Compensation often includes legal safeguards for employers

Workers’ compensation insurance is indispensable for structural framing contractors for several key reasons.

Foremost, it is a legal mandate in many jurisdictions. In the construction industry, accidents are a genuine risk. Without this coverage, injured workers may face financial hardship. The insurance covers medical expenses and lost wages, ensuring their well-being during recovery. Non-compliance can lead to penalties and license suspension, making it imperative for contractors to uphold this legal obligation.

Additionally, workers’ compensation insurance plays a critical role in liability management. Without it, contractors may be vulnerable to costly lawsuits from injured employees. This framing contractor insurance helps shield contractors from these legal risks, transferring the financial responsibility for workplace injuries to the insurance provider.

Furthermore, workers’ compensation helps in cost control. While premiums are an expense, they are generally more manageable than the unpredictable financial effects of workplace injuries. Insurance helps contractors budget more effectively, reducing the risk of unforeseen financial setbacks by addressing medical costs and lost wages.

Structural Framing Contractors and their employees face various common injuries and risks due to the physically demanding nature of their work. For example:

▪ The risk of falling from heights, like scaffolds or ladders, can cause serious injuries, including fractures, sprains, or even fatalities.

▪ The framing crew often handles heavy materials and equipment. Accidents can occur when objects are dropped or improperly handled, causing injuries such as concussions or fractures.

▪ Lifting, carrying, and positioning heavy beams and materials can strain muscles and lead to back and neck injuries.

▪ The use of sharp tools and equipment that can cause cuts and abrasions isn’t usually life-threatening but still requires medical attention.

▪ Continual tasks like hammering or drilling can cause repetitive motion injuries like tendonitis or carpal tunnel syndrome.

▪ Workers are exposed to harmful substances like asbestos or lead paint when working on older structures, which can develop long-term health issues.

▪ Working around electrical wiring and systems poses the risk of electric shocks or burns.

▪ Outdoor work exposes workers to weather conditions, increasing the risk of heatstroke, hypothermia or other weather-related illnesses.

Not having workers’ compensation insurance can bring negative consequences for structural framing contractors. Firstly, it can lead to financial loss. Without insurance, if an employee gets injured on the job, the company must cover medical expenses and lost wages out of its own pocket. These costs can quickly add up and strain the company’s finances.

Moreover, not having workers’ compensation insurance can result in penalties imposed by the state. Laws often require businesses, especially those in high-risk industries like construction, to provide this insurance. Failing to comply can lead to fines and legal troubles for the contractor.

This also damages your business reputation.

On the flip side, having workers’ compensation insurance offers several benefits for Structural Framing Contractors. It covers medical expenses and lost wages for employees who are injured on the job, reducing the financial burden on the company. In case of a workplace injury, the insurance also helps protect the contractor from potential lawsuits by injured workers.

Furthermore, workers’ compensation insurance includes provisions for rehabilitation services and assisting injured employees in returning to work. It also provides financial support to the families of workers who tragically lost their lives on the job, covering death expenses.

Insurance companies use a formula that involves the class code rate, employer payroll and an experience modification rating to calculate the premium. The class code rate is determined by the National Council on Compensation Insurance (NCCI), which assigns a 4-digit code to different job types, helping insurers assess risk. The typical class code for framing companies is 5403, although it may vary based on job descriptions or locations.

A class code is assigned by the National Council of Compensation Insurance (NCCI) or by state agencies based on the activities of the occupation.

There are many different workers’ comp class codes within the structural framing segment. Below is the class code(s) used:

Code 5403: Residential Construction

Class Code 5040: Iron Or Steel: Erection – Frame Structures

Code 5403: Commercial Construction

Class Code 5059: Iron or Steel: Erection – Frame Structures

Workers’ compensation allows you to concentrate on what you do best—build safe and secure structures—by protecting your employees and ensuring your financial stability. It might seem to be an additional expense, but when you consider the peace of mind it offers and the potential financial devastation it helps you avoid, its value is unquestionable. Don’t just consider it; make it an integral part of your business strategy.

UnderWrite Insurance Services is a national insurance agency that provides A-rated workers’ compensation insurance to cover framing employees. For a free insurance quote, submit an application below or give us a call at 201-580-6806.