Workman's comp. for solo op.

Discussion in 'Lawn Mowing' started by captaingreen, Jan 18, 2005.

  1. captaingreen

    captaingreen LawnSite Senior Member
    Posts: 471

    For the past few years I have maintained approx. 8 accounts on the commercial side and was only required to have a general liability policy $1,000,000 per/occ. and 2 aggregate, I used my personal medical ins. in place of workmans comp.. I am putting in a few bids this year for commercial "chain" business'/stores where they require a workmans comp. policy. I talked to by ins. guy and he quoted me $750 for a single policy, does this seem fair? He said my medical would cover personal expenses but the only advantage he could see is the policy would allow me to pursue commercial accounts that would require it, geez that sucks. Any input would be appreciated. :)
     
  2. plateau lawn care

    plateau lawn care LawnSite Member
    from georgia
    Posts: 195

    If you have that many comm accts 750 a year shouldnt be that big of a problem plus youll have a little more security. Has anyone thought thought about long term disability its very cheap and could help out with the mishap of an injury
     
  3. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    Do you have to have workmans comp in a solo opp.?
     
  4. plateau lawn care

    plateau lawn care LawnSite Member
    from georgia
    Posts: 195

    I dont have it on myself and I am Incorporated I think it only covers you if you get hurt , but it comes down to the customer if they feel they will get sued if you get hurt they may require you to have it or you dont get the job.
     
  5. captaingreen

    captaingreen LawnSite Senior Member
    Posts: 471

    Until this year I have only carried commercial general liability and my personal medical insurance. Having my own medical was always acceptable to property managers prior to estimating these new props. I'm wanting to take on- one is a chain hotel the other a retail chain. It's probably not a big deal to fork out the additional money, I quess I'm just feeling burdened by all the money I have to fork out to run a reputable business as I see these other guys that don't have a clue what they're doing.
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Sometime early last year,my insurance broker approached me with the idea that the owner of a business now can be covered under Workman's Comp. Unfortuantely though, the rate on me vs. my guys was like 4 times the amount. And since I already have my own major medical insurance and disability as well, I didn't opt for it.

    I too remember having a commercial account require WC (years ago when I was a solo operator). The account wasn't large enough to warrant taking out WC on myself as well, so I dropped them at year's end.
     
  7. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Yeah, $750 is a GREAT deal.

    In Wisconsin, workman's comp on an owner is based off a payroll of $37K a year. And at just over $11 per $100 in payroll, that equates to over $4K per year for workman's comp on the owner. Nice huh? Oh, then on top of that, you get to pay $11 per every $100 worth of payroll for employees. Pay the $750 and feel lucky that's all you have to pay.
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Thanks for reminding me Randy. Now I remember my broker saying like a 40K salary for me as a minimum...
     
  9. wrtenterprises

    wrtenterprises LawnSite Senior Member
    Posts: 318

    The basic policy here in Pa., is $1,800.00. Some more, but that is the best I have found. For me and 1 part-time employee, I pay W/C to the tune of $2,300.00 per year...... So yea, That's a great deal compared to my state.....
     
  10. plateau lawn care

    plateau lawn care LawnSite Member
    from georgia
    Posts: 195

    yes it is usually based on the salary and type of work. So you could only pay yourself half the amount you would have paid your self by hiding the rest from the IRS by making half of your customers pay in cash only. LOL!!!!! It is unfortunate the things we have to do to run a ( real ) straight up business and the rest of the guys take it all tax free
     

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