To be successful, construction companies need to be prepared and protected for any potential work-related injuries. One of the most critical components of this protection is selecting the right workers’ compensation insurance provider for their business.
For builders, workers’ compensation coverage protects what’s most important in your business: your employees. In a high-risk environment like construction, workers’ comp ensures the cost of medical treatment for a work-related injury is covered and helps employees return to the job safely. Plus, it protects the business from paying out of pocket for these expenses.
Most commercial insurance is sold through brokers, who assist their clients in finding the best insurance policies for their businesses, but even with these experts at your side, it pays to be informed. Choosing the right workers’ comp insurance provider is a critical decision, and companies should consider a variety of factors when making their selection. Here are five of the top characteristics that construction companies should look for in a workers’ comp insurance provider.
1. CONSTRUCTION INDUSTRY EXPERTISE
The first thing to consider when selecting a workers’ compensation policy is the provider’s knowledge of the industry. The construction industry involves specific risks and challenges that other industries do not face, and the ideal workers’ comp insurance provider should understand these industry nuances. They should be familiar with the various types of construction work, such as commercial, residential, and industrial, and be able to tailor their policies to meet the specific needs of each construction company.
2. STRONG FINANCIAL BACKING AND REPUTATION
The second thing to consider is the provider’s financial backing and overall reputation. The construction industry is volatile, and providers must have the resources and track record of paying claims and providing their policyholders with high-quality service in the event of an accident or an injury, even during times of economic downturn or market fluctuations. The simplest way to check a workers’ comp provider’s financial strength is inquiring about its “paper rating.” An organization called AM Best rates insurance providers with a grade that represents an insurer’s ability to meet its claims obligations. The rating scale includes six “Secure” ratings: A++, A+ (Superior) A, A− (Excellent), and B++ and B+ (Very Good). The rating scale also includes six “Vulnerable” rating grades. Some construction clients, like governments, require that their contractors’ workers’ comp providers have a certain grade or better of paper.
3. CUSTOMIZED RISK MANAGEMENT SOLUTIONS TO PREVENT CLAIMS
The third characteristic that construction companies should look for in a workers’ comp insurance provider is a customized approach to risk management solutions. An ideal provider should offer resources and tools that help companies identify trends and risks that would otherwise lead to injuries on their jobsite, preventing accidents and injuries from occurring in the first place. Risk management solutions can include custom safety training programs, workplace inspections, guidance on best practices for jobsite safety, and even technology used by workers in the field. For example, Foresight Commercial Insurance provides a proprietary safety phone or tablet app through which customized safety plans are deployed in the field. Customized solutions like these can help construction companies reduce their overall risk and potentially lower their insurance premiums.
4. CLAIMS MANAGEMENT SUPPORT
Another valuable characteristic for construction companies when it comes to workers’ comp insurance is claims management support. Look for a provider that has a streamlined process for reporting and managing claims in the event of a workplace accident or injury, including:
- Experienced claims adjusters who will thoroughly investigate claims, own communication with the injured employee, and work with medical professionals to ensure appropriate care is given to the employee.
- Continuous support throughout the entire claims process, from initial reporting to final resolution. This includes providing regular updates on claim status, paperwork and documentation assistance, and dispute resolution.
- Programs and resources to help the injured employee return to work as quickly and safely as possible.
5. COMPETITIVE PRICING FOR COMPREHENSIVE COVERAGE
Finally, construction companies should ensure they are provided with comprehensive coverage for all potential risks and hazards that their employees may face on the jobsite, at a competitive price.
The ideal workers’ comp provider should offer coverage for a range of work-related injuries and illnesses, including accidents that occur on the jobsite, repetitive motion injuries, and occupational diseases. The provider should also offer coverage for medical expenses, lost wages, rehabilitation, and death benefits.
Comprehensive workers’ comp coverage pricing can vary dramatically depending on the provider, the location, and the company size, and companies should compare quotes from multiple providers to ensure they are getting the best value for their money.
CLOSING THOUGHT
Selecting the right workers’ compensation insurance provider is critical for construction companies to protect their employees and business operations. While industry expertise, strong financial backing, and reputation are essential factors to consider, construction companies should also look for a provider that offers personalized risk management solutions, claims management support, and competitive pricing. In choosing a provider with these characteristics, companies can streamline their workers’ comp processes, reduce administrative costs, improve communication and accessibility, and provide their employees with the resources they need to recover from injuries and return to work safely.
For More Information:
Foresight is a workers’ compensation insurance provider that is on a mission to make workplace injuries a thing of the past. As the insurer of the future, Foresight prevents workplace accidents and reduces claims through best-in-class workers’ compensation insurance, powered by Safesite, the company’s data-driven safety engagement app and virtual consulting program. Foresight works hard to protect businesses in core industries and their skilled laborers who are the backbone of the American economy. For more, visit www.getforesight.com.
Modern Contractor Solutions, April 2023
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