Workmans comp insurance ?

Discussion in 'Business Operations' started by TMlawncare, Aug 6, 2004.

  1. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    I hired my first part time employee and am looking into workmans comp ins. The ins agecy told me that based on 6000.00 per year my premium would be right over $1100. That is one sixth of his pay rate. Is this right? What have all of you found out dealing with this?
     
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    what type of work they will be doing has a lot to do with it. Ask them to check out the different categories for rates. You should only be paying somewhere between $360 and $800 for that salary
     
  3. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Ditto what tiedeman said. What's the law in your state? In Virginia you're not required to carry workmans comp until you have 4 employees, I think.
     
  4. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    I was thinking around 300 to 600 but 1100 is crazy. The employee will be spending about 90% of his time on a mowing crew. 10% on shrub main. No pest. apps.
     
  5. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    As for the law in the state of Missouri, I have yet to find it in all the employment literature. Even if the state doesn't require it I thought is would be wise. However 1100 per 6000 I don't know.
     
  6. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    Average I say for that wage is about $480. I am basing that on 8 dollars per 100 of payroll
     
  7. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    Thanks guys for your quick responses. I always wondered where all that profit keeps going, its becoming more clear.
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    We pay $3.39 per $100 of payroll here.

    That is because we are catergorized as "mowing" vs. "landscaping which is up around $11 per $100. Sounds to me like your insurance agent has you in the lanscaping category instead of mowing...speak to him and straighten things out IMO.
     
  9. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

    Ya I agree, I believe mine is $4.19 on the hundred. Make sure its for the mowing, there was 2 differant codes that the agent told me about.
     
  10. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    I bet your agent quoted that rate based on minimum annual payroll of $25,000. Get all the facts from your agent and report back - also get the name of the carrier too.
     

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