Built Blog

Why You Need Workers Compensation Insurance as a Contractor

by builtinsurance 23 September , 2022

As a contractor, you are ultimately responsible for the safety and well-being of your employees while they are working on your projects. If one of your employees is injured or becomes ill while performing his or her duties, workers compensation insurance makes a significant difference by helping to cover their medical expenses, lost wages, and any job-related rehabilitation.


In most states, including the State of California, workers compensation insurance is required by law for all businesses that have employees. However, even if your particular state does not mandate it, it is still a very good idea to have quality coverage.

Protect Yourself and Your Business

There are many benefits of workers compensation insurance for contractors. First, it protects your business from being sued if an employee is injured while working. If an employee sustains a workplace injury and you do not have workers comp insurance in place, you could end up being found liable for significant damages. Such situations could even jeopardize your business operations in general, putting your livelihood and the livelihoods of your other workers at risk. With workers compensation insurance you, as the business owner, get much needed peace of mind.

Protect Your Employees

Second, workers compensation insurance is highly beneficial because it helps to cover the costs of medical care and lost wages for an injured employee. Depending on the severity of the worker’s injury (or injuries), medical costs could end up being quite substantial. Expenses from specialist visits, laboratory tests, medical imaging and more can quickly add up and seem almost insurmountable without proper insurance policies in place.


Finally, having workers compensation insurance can help you retain good, hardworking employees by providing them with financial security if they are injured while working. In a general sense, having work comp insurance is an important indication to your workers that you truly appreciate them, and care about their safety and prosperity. For their part, employees can rest easier knowing that if they are injured and unable to work, their needs will be sufficiently met. It can be hard for employees to remain motivated and focused on their tasks if they’re worrying about what might happen to themselves and their families if workplace accidents occur.

Better Safe than Sorry

While for some contractors the cost of workers compensation insurance may seem like an unnecessary expense, it is important to think longer term and keep in mind that it is a relatively small price to pay to protect your business and your employees over time. The reality is that no matter how many precautions you take, or how many safety protocols you put in place, there is always the chance that somehow, something could go wrong. All things considered, it is a far better option to spend the money on workers compensation insurance and have protection against the unexpected than to choose not to and risk catastrophe down the road.


Quality Workers Compensation Insurance for Contractors – Built Insurance Brokerage

If you’re a California contractor in need of workers compensation insurance, or other types of insurance such as general liability and commercial auto, Built Insurance Brokerage is here to help. Our skilled and experienced insurance agents have helped countless contractors and other construction industry professionals get the policies they need. Please request your quote online, or call our office at (805) 413-4331 for assistance today.

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