Workers' Compensation Insurance: A Guide for Pennsylvania Contractors

Workers' compensation insurance is not optional in Pennsylvania — it's the law. Every employer with one or more employees must carry workers' comp coverage. For construction contractors in Bucks County and Montgomery County, understanding how this coverage works can save you money and protect your business from serious liability.

What Does Workers' Comp Cover?

Workers' compensation provides benefits to employees who are injured or become ill as a result of their job. In Pennsylvania, this includes:

• Medical expenses — all reasonable and necessary treatment
• Lost wages — typically 66⅔% of the employee's average weekly wage
• Disability benefits — for temporary or permanent partial or total disability
• Death benefits — for surviving dependents in fatal accidents

How Are Workers' Comp Premiums Calculated?

Premiums are based on your payroll, the classification codes assigned to your employees' job duties, and your experience modification rate (EMR). The EMR reflects your claims history — a lower EMR means lower premiums. Carriers like Utica National, The Hartford, and Travelers all offer competitive workers' comp programs for Pennsylvania contractors.

Tips to Manage Your Workers' Comp Costs

• Implement a formal return-to-work program to reduce lost-time claims
• Conduct regular safety training and document all toolbox talks
• Report injuries promptly — delayed reporting increases claim costs
• Audit your payroll classifications annually to ensure accuracy
• Work with an experienced agent who understands construction exposures

Subcontractors and Workers' Comp

One of the most common and costly mistakes contractors make is failing to verify that subcontractors carry their own workers' comp coverage. If a sub doesn't have coverage and a worker is injured, you could be held responsible. Always collect certificates of insurance before any subcontractor begins work.

Get the Right Workers' Comp Coverage

The Stoll Agency works with Pennsylvania's top workers' compensation carriers to find the right program for your construction business. Whether you're a sole proprietor or a large general contractor, we'll help you stay compliant and control your costs.