Trade jobs like construction, plumbing, electrical work, and HVAC are essential and rewarding, but they also come with risks. Whether you’re a contractor, HR professional, or safety officer, you’re probably aware of the importance of keeping your crew safe and your business protected. One of the most critical pieces of that protection is Workers’ Compensation insurance.
Even in the safest workplaces, accidents happen. These can result from personal mistakes, equipment failures, or unpredictable circumstances. That’s why Workers’ Comp exists. It’s more than a safety net. In most states, it’s a legal requirement for any business with employees.
But despite how vital it is, many contractors still misunderstand Workers’ Compensation. Let’s clear the air and bust the seven most common myths.
Misconception #1: Workers’ Comp is too expensive.
Truth: It’s far more affordable than you think, especially when included in a comprehensive policy from Paperless Insurance. Without coverage, just one serious injury could cost your business tens of thousands of dollars. You can also face fines or legal trouble if you’re required to have Workers’ Comp and don’t.
Misconception #2: It’s only for serious injuries.
Truth: Workers’ Comp covers a wide range of incidents, from small sprains and repetitive stress injuries to major accidents. Early intervention helps employees heal faster and helps your business avoid bigger disruptions later.
Misconception #3: Minor injuries aren’t worth reporting.
Truth: Even small injuries can become serious if ignored. Let’s say someone gets a small cut on the job and doesn’t report it. If that wound becomes infected later, the lack of early documentation could complicate or reduce their benefits.
Always encourage reporting, no matter how minor it seems.
Misconception #4: It opens you up to fraud.
Truth: Fraud is rare, and good policies and procedures protect your business. Workers’ Comp systems have built-in checks to investigate claims, and your company can reduce risk even further by having clear reporting protocols and training.
Misconception #5: Filing a claim could cost someone their job.
Truth: Retaliating against employees for filing Workers’ Comp claims is illegal in most states. Employees have the right to report injuries and use their benefits without fear of losing their job. Employers who retaliate can face lawsuits and government penalties.
Misconception #6: Workers’ Comp doesn’t apply if the employee is at fault.
Truth: Workers’ Compensation is a no-fault system. That means even if an employee caused the accident, they’re usually still covered. The specifics depend on state law, but the general rule is that if the injury happened at work, it’s covered.
Misconception #7: It only covers medical bills.
Truth: Workers’ Comp goes beyond just paying doctor’s bills. It can cover lost wages, job training if the employee can’t return to the same work, and even death benefits for surviving family members. The protection is more comprehensive than many people realize.
Who Needs to Understand Workers’ Comp?
If you’re in HR at a construction or contracting company, you’re likely juggling compliance, claims, and keeping the team safe. If you’re the safety officer, Workers’ Comp should be woven into your safety strategy. Even small business owners who hire just a few workers need to understand how Workers’ Comp protects both the crew and the company.
Make Workers’ Comp Simple with Paperless Insurance
Workers’ Compensation isn’t just smart. It’s usually required. It’s especially critical in the trades, where the risk of injury is higher. Getting workers’ comp. with Paperless Insurance is easy and affordable. Just fill out a short application at https://www.paperless-insurance.com/get-a-quote-now/?lob_selection=Workers%20Compensation or if you still have questions our small business advisors can help. ==> 
Call 877-239-0067, Monday to Friday, 10am to 6pm PT.