1. Missed the live Ask the Expert event?
    Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community in the Franchising forum .

    Dismiss Notice


Discussion in 'Business Operations' started by troblandscape, Jan 15, 2003.

  1. troblandscape

    troblandscape Guest
    Posts: 0

    I am going from one employee to three employees this spring.
    Anyone have an idea what this is going to cost? Thanks
  2. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    I pay 2500 per year for 1 employee. That is in CT, and Im sure rates are different in other parts.
  3. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    Actual cost depends on where you are, more than anything. A search would get you all you need. Here's one from almost 3 years ago, that is still valid today:


    No one can tell you the cost except your insurance agent. Just make sure you are put in the right category.
  4. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    The amount is based on the worker's comp. percentage, which you are given by the state, and multiply that number per $100 of employee income. In NJ, it's 34 cents per $100. Whether you have 1 or 20, it doesn't matter how many people you have, it's based on employee salary.

  5. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Call your insurance agent and get the right answer!

    It will vary by state and payroll paid, so the responses you get here might or might not be close.
  6. f350

    f350 Banned
    from mi
    Posts: 424

    prepare to get whacked with work comp.... after a few years it will go down but until then the state will hit you with the $$ bling $$ factor..
  7. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    NOW, it sounds as though you don’t already have worker’s comp., since you should already know how use it and wouldn’t be asking the question. WELL……. Don’t assume your agent knows what he/she is talking about. My agent gave me the wrong classification and it would have been 3 times the amount I’m now paying if I didn’t do my own leg work. There are “many different” compensation rates for the “type” of work you do, AND, most agents guess or assume there is just a basic landscaper’s rate, which is untrue. You should be able access your states worker’s comp. rates on the internet for your state. Check to make sure you’re not paying for something you don’t do.
  8. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    The workers comp rates are set by experience in each state in specific areas of work. Rates thus vary from state to state and year to year within a single state, due to all the underwriters' experience in your state. In some states you can get discounts for having a history of safety or having a formal, written and documented, safety program. Insurance rates are set by experience, and approved by state insurance commissions, not just determined by market forces.

    The most important item in getting workers comp is to be put in the right category. Category codes are standardized across the country. If you are doing lawn maintenance, you would fall into code# 9102, "Lawn maintenance, commercial or domestic & drivers". Often an insurance agent or underwriter will try to put you into "landscaping" (landscape construction) or "tree service" categories, which are generally priced much higher.
  9. troblandscape

    troblandscape Guest
    Posts: 0

    Thanks for the good advice, this will help me out alot.
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    Really? Wow I am glad that I don't have an operation there. I think I usually pay around $800 per employee. Don't you think that it is kind of expensive? How can you afford that? Just curious, not being nosey or rude.

Share This Page