Workers’ Compensation Insurance

Methodology authored by Zach Wade, Wade Intel — operator-led lender tech methodology firm. Definitions validated against production borrower-validation runs with working bridge lenders. · Last reviewed 2026-07-10

What is Workers’ Compensation Insurance?

Insurance that provides wage replacement and medical benefits to employees injured on the job. Most states require employers (including contractors) to carry workers’ comp coverage. Failure to carry it can result in license suspension and personal liability.

Why it matters to bridge lenders

A GC without workers’ comp coverage creates liability exposure for everyone involved, including the property owner and potentially the lender. If a worker is injured on a job funded by your bridge loan, the lack of insurance can result in lawsuits, work stoppages, and mechanics liens. PulseClose checks insurance verification as part of GC validation.