Workers’ Comp Insurance for General Contractors in Georgia
Depending on the number of workers they employ and the policy status of subcontractors they hire, general contractors may need to maintain Workers’ Compensation coverage in Georgia.
General contractors in Georgia will need to purchase Workers’ Compensation insurance if they employ three or more employees or hire subcontractors who do not have coverage of their own. General contractors without employees or with fewer than three workers do not have to get Workers’ Compensation in Georgia. Typically, it is best for general contractors to get Workers’ Compensation from a carrier instead of self-insuring in Georgia. Not getting Workers’ Compensation when required might result in expensive fines and costly employee claims for general contractors.
To learn more about coverage for general contractors, speak with the Georgia Workers’ Compensation insurance brokers at NPN Brokers today by calling (866) 340-9120.
Workers’ Comp Requirements for General Contractors in Georgia
Some general contractors are 1099 employees, and others are sole proprietors. Others still might open an LLC when starting out as general contractors. Typically, general contractors who work alone and do not have employees are not required to have Workers’ Compensation coverage in Georgia. Those with employees might need coverage.
General Contractors without Employees
Any general contractor working alone does not need to get Workers’ Compensation in Georgia. This is because Georgia requires any business with three or more employees to have coverage. You will not have to get a policy if you work for yourself in a sole proprietorship or as a 1099 employee. Even if you are not mandated to have coverage because you work alone, our Workers’ Compensation insurance brokers can help you find a policy that will provide you with benefits if you are injured at work. Getting insurance as a general contractor is often beneficial, as doing so can protect you from financial liability for your injuries if you are hurt at on the job in Georgia.
General Contractors with Employees
In some cases, general contractors with employees will need Workers’ Compensation in Georgia. Georgia requires any business with three or more workers to get coverage. If you only employ two workers as a general contractor, you will not be required to have a policy. Subcontractors are not considered regular employees, meaning your coverage requirements might change. Payroll for Workers’ Compensation considers the number of part-time, full-time, and seasonal workers employed by a general contractor.
Workers’ Comp Liability for General Contractors with Subcontractors in Georgia
General contractors might have employees or hire subcontractors to help with certain aspects of a project. You might have a Workers’ Compensation liability if you take on subcontractors.
Figuring out your Workers’ Compensation requirements can be challenging if you hire subcontractors as a general contractor. In Georgia, a general contractor that needs coverage under the state’s laws for Workers’ Compensation and hires subcontractors may need to get insurance for those subcontractors if they do not have a policy of their own.
If you do not do this as a general contractor in Georgia, you might have to cover the damages of a subcontractor injured on the job. You are responsible for ensuring that the subcontractors you hire already have coverage before you take them on. Otherwise, you may be responsible for including them in your Workers’ Compensation policy.
Consequences of Not Having Workers’ Comp as a General Contractor in Georgia
General contractors that fail to get the necessary Workers’ Compensation can face certain consequences in Georgia. These include financial penalties from the State Board of Workers’ Compensation as well as liability for employee damages.
Fines from the State
Georgia imposes civil penalties on general contractors who do not maintain Workers’ Compensation when required. This includes a fine of no greater than $5,000 per act of non-compliance. Additionally, the Board of Workers’ Compensation levies fines for violations of the claims process on behalf of general contractors. If you interfere in a claim for the purposes of getting it denied, you might face a financial penalty of up to $10,000 in Georgia. In addition to financial penalties, general contractors in Georgia might face jail time for willful non-compliance with the state’s requirements for Workers’ Compensation.
Financial Liability for Injuries
One of the most significant consequences of failing to have Workers’ Compensation in Georgia is the potential for financial liability. General contractors with employees and without Workers’ Compensation might have to provide employees with equitable benefits after a workplace accident. If a general contractor is liable for their subcontractors, they might see a similar consequence if they fail to have Workers’ Compensation in Georgia. General contractors with coverage are protected from paying such damages to employees and subcontractors in Georgia.
Self-Insuring Workers’ Comp as a General Contractor in Georgia
Georgia allows certain companies to self-insure for Workers’ Compensation coverage. For general contractors, especially those in the construction industry, taking this route may be unwise.
Self-insuring for Workers’ Compensation means that a company does not have to get coverage, even if required to in Georgia. Instead, it is deemed financially stable enough to handle the cost of workplace accidents itself. To self-insure, you must file an application and provide ample evidence of your company’s finances.
When you self-insure for Workers’ Compensation, you do not have to pay monthly premiums to an insurance carrier. While that might seem less expensive in the short term, the opposite may be true in the long term. General contractors often work in dangerous industries like construction. Injuries sustained in workplace construction accidents can be severe and expensive. General contractors that choose to self-insure run the risk of covering the damages of injured employees. The alternative is finding an inexpensive Workers’ Compensation coverage policy that handles employee damages after workplace accidents.
Get Workers’ Comp for General Contractors Today
To find a policy that meets your needs, call NPN Brokers at (866) 340-9120 and speak with our Workers’ Compensation insurance brokers.
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