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Workers’ Compensation

Alternate description

Workers’ compensation insurance is a state-run program designed to ensure coverage for medical costs and lost time for workers who are injured on the job. The cost of providing this insurance is a major expense in the American construction industry.

Due to the rising cost of health care generally, the cost of workers’ compensation insurance has been rising all across the United States. Yet, each state runs the program differently, and requirements, rates and discounts vary from state to state.

Understanding how the system works and, especially, how to manage risk while taking best advantage of a particular state’s discount system are critical issues for construction contractors. Thus, the LHSFNA devotes considerable attention to these issues.

The Fund encourages signatory employers to designate and train risk management personnel so that injuries and lost workdays are minimized, safety performance is enhanced over time, X-Mod rates are reduced, return-to-work programs are effective and insurer reporting and reserve requirements are used to best advantage.

The Fund assists signatory employers in establishing safety programs and maintaining company safety cultures that minimize the risk of on-the-job injury and illness. When asked, it provides consultation and guidance to employers with specific problems or regulatory concerns.

Because each state manages its workers’ compensation program differently, the Fund, at the request of signatory contractors in various states, investigates opportunities to reduce premiums under state regulations.

With premiums rising and many states having difficulty making their systems work effectively, companies have no choice but to get better at managing both their risk and their use of the state system. The Fund will to continue to lend a hand in these endeavors.