Contractors Compensation


What is a Contractor’s Compensation Insurance?

Contractor’s Compensation Insurance is a type of insurance policy that covers compensation for injuries, court costs, attorney’s fees and other expenses related to an on-the-job injury. This is a separate policy from workers’ compensation which businesses are required to carry. Further, a contractor’s compensation insurance protects both private contractors and the business. As the exclusive legal remedy for on the job injuries, contractor’s compensation laws protect business owners from going bankrupt due to constant, lengthy, legal proceedings around these relatively common on the job injuries.

Who Are These Policies For?

A typical contractor’s compensation policy is generally taken out by a business owner, the terms of that policy will depend on the requirements due to the nature of business the policy-holder engages in. Just as a sports car is insured at a different rate than a hatchback, the contractor’s compensation insurance will depend on the type of work insured. In short, business owners like construction contractors and others are those most affected by and most in need of worker’s compensation insurance.

How Does It Work?

A contractor’s compensation insurance policy functions similarly to any other liability insurance policy. If a private contractor is injured on the job, and that injury meets certain requirements, that worker may make a claim against the employer’s insurance and that claim can then be paid out on the terms of the policy; allowing the worker to be made whole for their injury while protecting their employer from a lengthy and expensive personal injury style legal process.

Different Types of Worker’s Compensation Insurance

There are many different variations on contractor’s compensation, and if your business works with private contractors, it is to your advantage to purchase a contractor’s compensation policy as it would be best to avoid a one size fits all approach. Give us a call for a consultation, we can help tailor the policy terms and limits to your legal requirements and your business’s specific needs.

How Does a Contractor’s Compensation Help Me?

The primary benefit of a contractor’s compensation policy is, first, the easy and efficient adjudication of the injured worker’s claim-ensuring your workforce feels safe, secure, and looked-after in their work environment and, second, the significantly reduced likelihood that your business will have to litigate a complex tort claim through the normal legal processes.