Workmans Comp

Discussion in 'Business Operations' started by blankenshiplawncare, Jul 26, 2004.

  1. blankenshiplawncare

    blankenshiplawncare LawnSite Senior Member
    Posts: 253

    This is my second year in business. I have business insurance (liability) business license, you know the things I needed. I got a contract with a section 8 apartment complex and of course had to bid it pretty low. This is the end of the second month of service and they now are requiring me to have Workman's comp insurance. In Georgia the law states that I don't have to until I have 3 or more employees. How ever it also states that the company that you work for policies can supersede the state law. Has anyone had any experience with Workman's comp???
     
  2. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    Talk to your insurance agent, the one that wrote your business policy, they should be able to help you out. It is based on your annual payroll. Not really sure how it works with a sole proprietor type of business.
     
  3. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    I'm in Virginia, I checked w/ my insurance agent about this. You can get workmans comp for yourself, it would replace your earnings if you injured yourself on the job and couldn't work. I was quoted $908 for 1 year. I never got it though, so I don't really know how all it works. Just told my agent that I wanted something that would replace my earnings in case of a catastrophe.
     
  4. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,414

    It's one of those insurance products that are so good they had to make it the law or you simply would not buy it. Nothing more then yet another hurdle to jump over if you want to be in business.

    Something I would work out if I were you is if you are allowed to go with out it. And you get your new quote do the math on this account and figure out weather or not your better off just dropping the account.
     
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Seems kind of strange they didn't ask for it up front???
     
  6. blankenshiplawncare

    blankenshiplawncare LawnSite Senior Member
    Posts: 253

    The quote from my insurance company is about 14% of salary per individual. i.e. my only employee is a part-timer that makes about 20,000.00 per year or less and the insurance quote low was 2800.00 per year and high was 3300.00 per year. Now that still has'nt covered me the owner. I figure that a low ball on me is about 45,000.00 salary per year so that figures out to be about 6300.00 for me. now take the 3300.00 + 6300.00 and we have 9600.00 per year for Workman's comp insurance for my little business. Ouch. Thats 800.00 per month. Any body think they could save that much money in a simple savings account and maybe self insure them self? Maybe I have been misquoted. I agree that this is a poor way to do business for the apartment complex. I should have know about this before I bid on the job. I sure wouldn't't have bid it so low.
     
  7. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,414

    Yup I got quoted as high as 20% of salery which I laughed out loud at the guy. Something you may want to look into is you may be mislabled I read some where on here that lawn care was a much lower rate then landscaping on comp insurance.
     
  8. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    In most states any "officer" of the corporation can file for an exempt ... ie pres, vice pres, etc

    That's one of the bennys of being an "inc." .... you can have the W/C but you as an owner are exempt only pay W/C on the hourly workers
     
  9. grasswhacker

    grasswhacker LawnSite Gold Member
    Posts: 3,873

    I would drop the Sec 8 apt job. Never let your client dictate what you do or do not do, and since you don't have to have WC for less than 3 emps i would try to make up the difference in what you make on the sec 8 and the cost of having the wc ins. with other jobs. JMO
     
  10. blankenshiplawncare

    blankenshiplawncare LawnSite Senior Member
    Posts: 253

    I agree fully. I hate being put in a corner. Then when I try to argue logic they turn a deaf ear and look stupid at me. Makes me wonder what people really expect from us LCO's. Anyway I did receive a 8% quote from a second source. As stated above the difference was the lawn care vs. landscaping. Kelly's is right on this one. Thanks for the responses BTW. I am going to be insurance poor sooner than later I for-see.

    Phil
     

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