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Need Workman's comp.

Discussion in 'Business Operations' started by Phishook, May 21, 2002.

  1. Phishook

    Phishook LawnSite Bronze Member
    Messages: 1,143

    OK I know I should have looked into this earlier, but i didn't.

    I hate making you guys hear another scrub story, but I did it to myself. (That's the first step right; Admitting it!)

    I had liability ins. for the past 4 yrs. Worked great for just me. Now I've got an employee working about 25-35 hrs. a week.

    Any suggestions???

    I'm going to contact my ins. agent first thing in the morning, just woundering if their's any thing I should keep in mind.
  2. John Allin

    John Allin LawnSite Bronze Member
    Messages: 1,488

    Talk with your agent. Tell him the truth, and go from there.
    At least you recognize the problem, and are taking steps to correct it. Well done.
  3. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Messages: 295

    State laws differ on when you must have Worker's Compensation Insurance. The threshold normally is expressed as the number of employees, such as three or more (as an example). Your insurance agent can give you the straight poop for your individual state. JD
  4. Southern Lawns

    Southern Lawns LawnSite Senior Member
    Messages: 259

    In most States like Hawk said you need to have at least 3 employees for it to be required BUT as it was explained to me one small accident and you could be working for your employee for the rest of your life. Simple choice for us! We pay out on the amount of payroll per year.
  5. Phishook

    Phishook LawnSite Bronze Member
    Messages: 1,143

    Sounds good.

    My agent wasn't in today, but the receptionist said he'll call tomarrow.

    If it's based on his salery, where do they get the proof of income?
    His hours verry day to day and week to week.
  6. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Messages: 295

    The first year premium is based upon your estimate of payroll. After expiration the Insurance Company will send an auditor to look at your payroll records (this is likely for a new account no matter the size). In subsequent years they may send a Voluntary Audit form to be completed and returned by your CPA. They may or may not have a auditor come back at some point.
    After the audit is complete, they will refund premium or invoice for additional premium depending upon how accurate your estimate was.
    Make sure you know the rate per $100 of payroll so you can set aside $ to pay additional premiums if your payroll exceeds the estimate. Just one of the headaches that come with employees. Also another consideration to take into account as far as bidding jobs, adds to your overhead.
    Southern Lawns is correct, you can be sued, but that's a whole different story outside the scope of your question. JD
  7. Grasshog

    Grasshog LawnSite Senior Member
    Messages: 270

    3 or more employees in NC and you have too have it.

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