Workers Compensation Insurance for General Contractors in Pennsylvania: Coverage, Costs, and Requirements

Workers compensation insurance is required for Pennsylvania general contractors with one or more employees. WC covers your employees' work-related injuries and illnesses: medical treatment, lost wages, disability benefits, and death benefits. Pennsylvania's WC system is administered through the Workers Compensation Appeal Board, and Philadelphia's litigation environment pushes Pennsylvania GC WC premiums above the national average.

Quick Answer

Estimated workers compensation premiums for Pennsylvania general contractors:

Business Size	Estimated Annual WC Premium
Small GC (1 to 5 employees)	$2,000 to $4,000 per year
Larger GC (6 or more employees)	$3,800 to $7,600 per year

Pennsylvania GC workers comp premiums are above the national average. Actual premiums depend on payroll, employee classification codes, and experience modification factor.

What Workers Comp Covers for Pennsylvania General Contractors

Medical Treatment for Work Injuries

WC covers the cost of medical treatment for employees injured on the job -- emergency care, surgery, physical therapy, and ongoing treatment.

Lost Wages

WC pays a portion of an injured employee's wages during recovery. Pennsylvania's temporary total disability benefit is two-thirds of average weekly wages up to a state maximum.

Permanent Disability

WC provides permanent partial and total disability benefits under Pennsylvania's WC schedule.

Death Benefits

WC pays death benefits to eligible dependents of employees who die from work-related injuries or illnesses.

Employer's Liability

Workers comp policies include an employer's liability section that covers lawsuits from employees claiming negligence beyond the WC system.

What Workers Comp Does Not Cover for Pennsylvania General Contractors

Subcontractor Injuries

WC covers your employees, not independent subcontractors. Subcontractors need their own WC. Uninsured subcontractor payroll may be added to your policy at audit. Collect WC certificates from every subcontractor before work begins.

Third-Party Bodily Injury

WC does not cover bodily injury claims from non-employees. General liability covers those third-party claims.

Property Damage

WC does not cover property damage. GL covers property damage claims.

Pennsylvania-Specific Considerations

Pennsylvania Workers Compensation Appeal Board

Pennsylvania WC disputes are handled by the Workers Compensation Appeal Board. Pennsylvania is known for a worker-favorable system with above-average benefit levels, contributing to higher premiums. GCs should maintain strong safety programs to control claims frequency.

Pennsylvania State Workers Insurance Fund

Pennsylvania operates the Pennsylvania State Workers Insurance Fund (SWIF) as an insurer of last resort for employers who cannot obtain private coverage. GCs with difficulty obtaining private WC can access SWIF.

Philadelphia and Pittsburgh Construction Markets

Philadelphia and Pittsburgh are Pennsylvania's primary construction markets. GCs working on commercial, residential, and infrastructure projects in these markets operate in a high-volume sector. Project owners and general contractors routinely require WC certificates from subcontractors on commercial projects.

Subcontractor Certificate Management

Pennsylvania GCs should maintain current WC certificates for every subcontractor on every project. At audit, uninsured sub payroll is added to your policy at the applicable construction classification rate.

Frequently Asked Questions

Is workers comp required for general contractors in Pennsylvania?

Yes. Pennsylvania requires WC for employers with one or more employees. Non-compliance triggers penalties and personal liability for employee injury costs.

Does WC cover subcontractor injuries on my Pennsylvania job site?

WC covers your employees. Subcontractors need their own WC. Uninsured sub payroll may be added to your policy at audit. Collect certificates from all subcontractors.

How much does workers comp cost for a Pennsylvania general contractor?

Pennsylvania small GCs typically pay $2,000 to $4,000 per year for WC coverage, above the national average.

What is the Pennsylvania SWIF?

The Pennsylvania State Workers Insurance Fund is a state-operated WC carrier available to all Pennsylvania employers. It is the insurer of last resort for employers who cannot obtain private coverage.

Does WC cover injuries from subcontractors' employees?

Not directly. Subcontractors should carry their own WC. If they don't, their payroll may be added to your policy at audit.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent and attorney for guidance specific to your situation.

Sources

• Pennsylvania Department of Labor and Industry
• Pennsylvania Insurance Department
• Insurance Information Institute
• Associated General Contractors of America