Workers' Compensation Insurance for Concrete Contractors: What You Need to Know Before You Hire Your First Employee
- May 26
- 6 min read
Hiring your first employee is a turning point for your concrete business. It usually means more jobs, bigger projects, and the ability to grow beyond what you can handle alone. But it also introduces a new level of responsibility—especially when it comes to protecting your crew.
One of the first questions we hear from contractors is: Do I need workers’ comp for a concrete business? In Nate Jones’s CPCU, ARM, CLCS, and AU, experience as a former underwriting manager, this is one of the most misunderstood areas in construction insurance. At Wexford Insurance, we’ve helped countless concrete and paving contractors navigate this exact moment—and avoid costly mistakes.
Workers’ compensation insurance is not just a box to check. It’s a foundational policy that protects your employees and your business when something goes wrong on the job.
Average Cost of Workers’ Compensation Insurance for Concrete Contractors
The cost of workers’ compensation insurance varies based on your operations, but concrete work is typically considered a higher-risk class due to the physical nature of the job.
Below are realistic estimated ranges based on what we see across our contractor clients.
Estimated Cost: $6,000–$18,000+ annually for small to mid-sized crews
Key Pricing Factors:
Total payroll
Job duties (flatwork vs. heavy foundation work)
Claims history
Safety procedures
In general, you can expect workers’ comp rates for concrete contractors to be calculated per $100 of payroll, with higher rates for more hazardous work like road paving or structural concrete.
Estimated Cost: $1,200–$3,500 annually
Covers third-party injuries or property damage (e.g., a homeowner tripping near a jobsite)
👉 Learn more about https://www.wexfordins.com/general-liability-insurance
Estimated Cost: $1,500–$5,000+ per vehicle annually
Required for trucks hauling tools, forms, or concrete equipment
Estimated Cost: $500–$2,500 annually
Covers saws, mixers, finishing tools, and portable equipment
Estimated Cost: $750–$2,000 annually for $1M in coverage
Adds extra protection on top of liability policies
At Wexford Insurance, we typically recommend newer contractors bundle several of these policies into a Business Owners Policy (BOP) where possible to reduce cost and simplify coverage.
What Factors Affect Workers’ Comp Costs for Concrete Contractors
Workers’ compensation pricing isn’t random. Carriers use very specific risk factors to determine your premium.
Here are the biggest drivers:
1. Payroll Size
Your premium scales directly with payroll. More employees = more exposure.
2. Type of Work
Flatwork and decorative concrete tend to be lower risk than heavy structural or road paving. Using hot asphalt, cutting concrete, or working around heavy machinery increases rates.
3. Claims History
A clean history will significantly reduce your cost over time. Frequent injuries will drive premiums up quickly.
4. Experience Modification Rate (EMR)
Once your business grows, you’ll be assigned an EMR score. Anything over 1.0 means you’re riskier than average.
5. Safety Practices
In Nate Jones', CPCU, ARM, CLCS, and AU, words:
“Contractors who invest early in safety—training, protective gear, and jobsite procedures—almost always see lower long-term workers’ comp costs. Underwriters reward consistency.”
At Wexford Insurance, we’ve seen firsthand that contractors who implement simple things—like documented safety meetings and proper lifting protocols—tend to avoid the most common claims entirely.
Workers’ Compensation Requirements for Concrete Contractors
Once you hire employees, workers’ comp is generally not optional. It’s a legal and financial safeguard.
When Coverage Is Required
Most construction businesses are required to carry workers’ compensation once they have employees—even if:
You only have one employee
The worker is part-time or seasonal
You hire labor temporarily during busy months
Failing to carry coverage can result in:
Fines and penalties
Stop-work orders
Personal liability for medical bills and lost wages
What About Subcontractors?
This is where a lot of contractors get into trouble.
If you hire subcontractors who do not carry their own workers’ comp policy, you may be held responsible if they get injured.
One of the most common mistakes Nate Jones CPCU, ARM, CLCS, and AU, sees is assuming a 1099 agreement automatically removes liability.
“If a subcontractor is uninsured and working under your direction, there’s a strong chance the claim lands on your policy—or worse, your pocket,” Nate Jones CPCU, ARM, CLCS, and AU, explains.
At Wexford Insurance, we always advise contractors to:
Collect certificates of insurance (COIs)
Verify active coverage dates
Avoid working with uninsured subs whenever possible
Does Workers’ Comp Cover the Business Owner?
Not automatically.
In many cases, business owners are excluded unless they choose to include themselves. Whether you should opt in depends on:
Your health insurance coverage
Your role in daily operations
Your financial risk tolerance
We often recommend coverage for owners who are still actively working in the field.
How Workers’ Compensation Fits into Your Full Insurance Plan
Workers’ comp is just one piece of a complete risk management strategy.
A typical concrete contractor insurance package includes:
Workers’ Compensation (covers your employees)
General Liability Insurance (covers third parties)
Commercial Auto Insurance (covers your vehicles)
Inland Marine Insurance (covers your tools/equipment)
Umbrella Insurance (adds higher liability limits)
Each policy addresses a different type of risk. Skipping one leaves a gap.
At Wexford Insurance, we recently worked with a small concrete contractor who only carried liability insurance. After an employee suffered a back injury lifting forms, the owner realized too late that medical costs and lost wages weren’t covered. That situation could have been avoided with the right workers’ comp policy in place.
How to Lower Your Workers’ Compensation Costs
You can’t eliminate risk in concrete work—but you can control how insurers view your business.
Here are practical ways to lower your costs:
Implement a safety program
Regular safety meetings and written procedures go a long way with underwriters.
Learn More: OSHA
Train employees properly
Focus on lifting techniques, equipment use, and hazard awareness.
Accurately classify employees
Misclassifying workers can lead to audits and higher premiums.
Review payroll regularly
Keep projections accurate to avoid surprises during audits.
Maintain a clean claims history
Even small claims can impact your long-term rates.
Work with an independent agency
Different carriers rate risks differently. Shopping multiple options matters.
As an independent agency, Wexford Insurance compares multiple carriers to find contractors the most competitive pricing for their specific risk profile.
FAQ: Workers’ Compensation for Concrete Contractors
Do I need workers’ comp if I only have one employee?
Yes, in most cases. Even a single employee creates exposure that requires coverage. Waiting until you grow larger can create serious risk early on.
Can workers’ compensation protect me from lawsuits?
Yes—workers’ comp is generally a “no-fault” system. In exchange for covering medical costs and lost wages, employees typically give up the right to sue for workplace injuries.
What types of injuries are most common in concrete work?
At Wexford Insurance, the most common claims we see include:
Back injuries from lifting forms or bags
Cuts from saws and finishing tools
Burns from hot materials
Slip-and-fall incidents on wet surfaces
Does workers’ comp cover injuries off the jobsite?
It depends. If the injury happens while performing work-related duties—like traveling between jobsites—it is often covered.
What happens if I don’t carry workers’ comp?
You could face fines, work stoppages, and full financial responsibility for any employee injury. That includes medical bills, lost wages, and potential legal costs.
Can I exclude subcontractors from my policy?
Only if they carry their own valid workers’ compensation insurance. Otherwise, they may be treated as your employees for coverage purposes.
Why Concrete Contractors Choose Wexford Insurance
Concrete contractors work in one of the most physically demanding trades—and insurance needs to reflect that reality.
At Wexford Insurance, we specialize in contractor risk. We understand the differences between flatwork crews, foundation specialists, and paving operations—and we tailor coverage accordingly.
Nate Jones, CPCU, ARM, CLCS, AU, leads our agency with a background in underwriting and risk management. He’s a graduate of Indiana State University’s Insurance and Risk Management program and has worked on both sides of the industry.
We are a Trusted Choice independent agency, which means we’re not tied to one insurance carrier. We shop the market for you.
“Our job isn’t just to sell a policy—it’s to make sure nothing falls through the cracks when a claim happens,” Nate Jones CPCU, ARM, CLCS, and AU, says.
We’ve helped contractors at every stage—from solo operators hiring their first worker to established crews scaling into larger projects.
Get a Quote from Wexford Insurance
Hiring your first employee is exciting—but it’s also when your exposure changes the most. The right workers’ compensation policy protects your crew, your business, and your future.
Wexford Insurance is here to help you get it right from the start.
Wexford Insurance Address:107 N State Road 135, STE 304, Greenwood, IN 46142
Call 317-942-0549 or visit www.wexfordins.com. We will compare multiple carriers and help you secure the right protection at the best possible price.
