Oregon requires almost all employers, including contractors, to carry Workers’ Compensation insurance for their employees. If the Workers’ Compensation Division (WCD) discovers a contractor does not have coverage when they should, it will send notification with the period of noncompliance and the cost of the fine. The penalty for the first offense is twice the amount of premium a contractor should have paid for insurance, with a minimum of $1,000.
If the contractor continues to employ workers without coverage, the penalty will be up to $250 per day for each additional day of noncompliance after the first order. There is no limit on the total penalty assessed. Also, if a third order or more is issued, WCD will request a permanent court injunction to force the employer/contractor to stay in compliance. If injunction is disobeyed, the contractor will be in contempt of court and subject to other types of sanctions, including jail time.
What is the cost for contractor Workers’ Compensation in Oregon?
The cost for a contractor Workers’ Comp policy can vary greatly based on the location, payroll amount, classification of workers, and the company’s prior work-related injury history.
What does a Workers’ Compensation policy cover?
If an employee is injured, becomes ill, or dies as a result of their work, Workers’ Compensation insurance will pay benefits to the person or their family. These benefits can include medical treatment, temporary or permanent disability, partial pay replacement, and death benefits.
In addition to the employee, the contractor is covered by a Workers’ Compensation coverage. If an employee received benefits under a Workers' Compensation policy, they cannot launch a case against the contractor. A lawsuit can be filed against the employer, however, if the employer willfully injures the employee or if the task performed falls outside the limits of the worker's assignment.
Inside our Workers’ Comp Ghost Policy
For one-person operations, independent contractors, and paper GCs in Oregon
You’re self-employed with no workers or an independent contractor, so Workers’ Compensation is not required in most cases. However, your customers want proof of coverage during the bidding process so you can win the project. Or you’re a general contractor managing the construction work with a high subcontractor exposure and no payroll. You must also provide proof of Workers' Comp to land a project.
Our Workers’ Comp Ghost Policy is designed to fit your needs and show proof of coverage. While the policy doesn’t provide coverage or any benefits, it enables you to meet contractual obligations and land more jobs.
The premium for a Workers’ Compensation Ghost policy is based on payroll. There is no payroll for businesses without employees, so a Ghost policy is often less expensive than standard Workers' Compensation insurance. Before you renew your coverage, the insurance company will perform an audit to check that you still have no employees. Premium adjustments will be made if you’ve hired anyone during the year.
For Oregon Paper General Contractors
With CCIS’ program, general contractors with a subcontractor exposure over 50% and up to 100% can also obtain a Workers’ Compensation policy.
Call us at (800) 432-2641 to see if you’re eligible for our Workers’ Comp Ghost Policy and GC Program and for a quote.