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Workers Comp

Discussion in 'Starting a Lawn Care Business' started by howardsells2000, Nov 13, 2006.

  1. howardsells2000

    howardsells2000 LawnSite Senior Member
    Messages: 355

    I just spoke with my insurance agent regarding adding a employee for next year, so she quoted me a price for workers comp. I was blown away. She told me the cost is $2389.00 a year. She said this is the minimum amount. Even if the employee only works a few months. This seems crazy to me. That is about $200 a month over 12 months. If the employee only works 6 months that works out to $400 a month. Does this sound right to you guys. I live in Maryland, in case that matters.

    Any comments or advise will be appreciated.

  2. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    I have never heard of a minimum amount..though each state is different. Generally it is all based on payroll. I would suggest that you make sure your employees are classified correctly.
  3. grassmanak

    grassmanak LawnSite Senior Member
    Messages: 792

    i use to do billing for an a company before lawn care, they paid about 30,000 a year for it, they had 26 employees. Its so expensive, you need to find a way to not make him an employee, but more like a temp or something like that. He has his own company and helps you, something like that, their are ways around workers comp, just be careful.

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    Call around-- I paid 3.8% for mine- which if you pay 100K for the year is $3800
  5. Dunn's

    Dunn's LawnSite Bronze Member
    Messages: 1,534

  6. The mayor

    The mayor LawnSite Senior Member
    Messages: 592

    Who do you have for insurance. Mine was almost $3000.00. Time to shop around
  7. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    There are no ways around it. Even if he is a subcontractor, by law, you have to be sure he is covered by workers comp. his or yours.

    We own 6 different companies in different markets. On of our companies pays about 18% (hi risk) and the law is about 4%...
  8. Dunn's

    Dunn's LawnSite Bronze Member
    Messages: 1,534

    Travelers insurance This for the owner,crew manager and one full/part time employee.Not sure what it will be next year though.
  9. sunray

    sunray LawnSite Member
    Messages: 218

    We started out at 3600 and it dropped to 3000 starting into the second year.
    It's 14% of payroll in Georgia, the insurance just about put us out of bussiness.
  10. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    Thats what I am saying, make sure you are classified correctly. Landscapers are at 14% in nh and Lawn Mowers (Park NOC classification) are at 3.5%. I had one agent truly figure out what we do and found that we were misclassified. I applied for a rebate and a very large check for the previous 3 years was sent to me...

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