Insurance coverage that pays for employee injuries occurring on the job, including medical expenses and lost wages. In commercial real estate, landlords sometimes pass building staff workers compensation premiums through as a CAM expense.
Workers compensation is a state-mandated insurance program covering employer liability for on-the-job injuries. In commercial buildings, the policy covers on-site management staff, janitorial crews, security guards, and maintenance workers employed by the landlord or property management company. The premium is based on payroll and job classification risk codes.
Landlords pass through workers compensation premiums for corporate office staff who never set foot in the building, or for construction crews working on capital improvement projects that should not be in the operating expense pool. Some landlords also include experience modification surcharges from poor safety records across their entire portfolio, not just the subject property.
Request the workers compensation policy declaration page and verify it covers only building-level employees whose labor is already a legitimate operating expense. Premiums for construction crews, regional managers, or corporate employees should be excluded.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
