Workers Comp

Discussion in 'Starting a Lawn Care Business' started by howardsells2000, Nov 13, 2006.

  1. howardsells2000

    howardsells2000 LawnSite Senior Member
    Posts: 355

    I just spoke with my insurance agent regarding adding a employee for next year, so she quoted me a price for workers comp. I was blown away. She told me the cost is $2389.00 a year. She said this is the minimum amount. Even if the employee only works a few months. This seems crazy to me. That is about $200 a month over 12 months. If the employee only works 6 months that works out to $400 a month. Does this sound right to you guys. I live in Maryland, in case that matters.

    Any comments or advise will be appreciated.

    Thanks
    Howard
     
  2. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    I have never heard of a minimum amount..though each state is different. Generally it is all based on payroll. I would suggest that you make sure your employees are classified correctly.
     
  3. grassmanak

    grassmanak LawnSite Senior Member
    Posts: 792

    i use to do billing for an a company before lawn care, they paid about 30,000 a year for it, they had 26 employees. Its so expensive, you need to find a way to not make him an employee, but more like a temp or something like that. He has his own company and helps you, something like that, their are ways around workers comp, just be careful.
     
  4. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Call around-- I paid 3.8% for mine- which if you pay 100K for the year is $3800
     
  5. Dunn's

    Dunn's LawnSite Bronze Member
    Posts: 1,534

  6. The mayor

    The mayor LawnSite Senior Member
    Posts: 592

    Who do you have for insurance. Mine was almost $3000.00. Time to shop around
     
  7. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648


    There are no ways around it. Even if he is a subcontractor, by law, you have to be sure he is covered by workers comp. his or yours.

    We own 6 different companies in different markets. On of our companies pays about 18% (hi risk) and the law is about 4%...
     
  8. Dunn's

    Dunn's LawnSite Bronze Member
    Posts: 1,534

    Travelers insurance This for the owner,crew manager and one full/part time employee.Not sure what it will be next year though.
     
  9. sunray

    sunray LawnSite Member
    Posts: 218

    We started out at 3600 and it dropped to 3000 starting into the second year.
    It's 14% of payroll in Georgia, the insurance just about put us out of bussiness.
     
  10. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    Thats what I am saying, make sure you are classified correctly. Landscapers are at 14% in nh and Lawn Mowers (Park NOC classification) are at 3.5%. I had one agent truly figure out what we do and found that we were misclassified. I applied for a rebate and a very large check for the previous 3 years was sent to me...
     

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