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Workmans Comp Rates?

Discussion in 'Business Operations' started by turfsolutions, Nov 24, 2003.

  1. turfsolutions

    turfsolutions LawnSite Senior Member
    Posts: 852

    Wow, I am paying 9.72% for Workerscomp in pa. Anyone beat that, and if so, give me the insurance company name please.

    THanks for any help.
  2. yourlawnguy

    yourlawnguy LawnSite Member
    Posts: 228

    Don't complain, it's 12.5% here.
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    3.39% here in NJ. Some states differentiate betwen "mowing" and "landscaping". BTW, mowing is much lower...
  4. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    9% in CT
  5. turfsolutions

    turfsolutions LawnSite Senior Member
    Posts: 852

    I do realize that different states have different laws. I should have specified a Pa. Company reply.

    Yourlawnguy - I guess I shouldn't complain- 12.5% is a lot. What a rip off eh!

    NJ - 3.39% - lucky dogs, thats my kind of rate.
  6. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    Ron's got the right goods. Make sure you're not paying for "Landscaping" instead of "lawn maintainance". Insurance companies don't know what they are doing. Check on the right coverage in your state on your own. There should be a state website for it.......
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    If my memory serves me right, my insurance broker explained it to me like this...insurance companies figure that "landscapers" are a higher risk cause they're using backhoes, skid steers, chain saws, stump grinders, etc.. "Lawn Maintenance" companies for the most part just use mowers, trimmers, and blowers.

    Secondly, you have to tell your insurance carrier what your business is in. I only had to "prove" to them I was most maintenace by showing them last year's Profit & Loss
    Statement...for me, maintenance was 73% of my total revenue.
  8. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Here in KS I believe it's $750 a year, but that does not include yourself, but will include an employee if he/she makes under $10,000 a year....not sure what it is for yourself and an employee that makes over $10,000 a year.
  9. Southpaw

    Southpaw LawnSite Member
    from Atlanta
    Posts: 88

    I was a work comp premium auditor for years before joining the green industry. Once you are labeled into a category, you cannot get a lower rate in your state based on that category if you only do one type of service. However, many LCO's provide a variety of services and seperating your labor per type of work provided can save you thousands if you know which category to assign your labor. For example:

    Code #0042 - Landscape gardening & drivers
    Code #9102 - Park NOC- all employees and drivers also known as lawn maintenance
    Code #0106 - Tree pruning, spraying, repairing and drivers
    Code #0005 - Tree planting for reforestation and drivers
    Code #6217 - Grading of land NOC and drivers, also covers tree removal operations- limited number from developed sites and excavation
    Code #3632 - Lawn mower repair
    Code #6229 - Irrigation or drainage system construction

    The list goes on and on and each one of them have a different rate per $100 of employee wage. Be very careful when talking to your insurance agent. If you are mainly doing lawn care, then don't say a word about grading or tree work. If you are doing this work on a regular basis, don't lie to them either. If you get put into a lawn care code and then fall out of a tree holding on to your chainsaw, you could have problems. I can promise you that premium auditors have to adhere to the standards of seperation of labor or place all of your labor into the highest rated category. There are many good agents out there, but on the other hand, many only rely on their list of codes to place you into a cookie cutter category that does not describe you very well.

    If anybody would like to hear more about this, feel free to PM me for my email address. And if you ever consider changing careers, here are a few that you might want to try: LOL

    Code #6504 - Ketchup mfg.
    Code #9088 - Missiles bases - firing and bunkers
    Code #2688 - Pocketbook mfg.

    All in fun there, but the best advice I can give you is to talk to your agent about the scope of basic manual classifications adhered to by NCCI (National Council on Compensation Insurance). Your agent will respect you for staying on top of your desire to pay no more than necessary.
  10. turfsolutions

    turfsolutions LawnSite Senior Member
    Posts: 852

    Thanks for the replies, I will look into it.

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