workers comp

Discussion in 'Business Operations' started by C4chris70, Jun 18, 2002.

  1. C4chris70

    C4chris70 LawnSite Senior Member
    Messages: 501

    I tried a search, but was unable to find the info I need. I just started taking applications today to hire my first employee. I have been trying to find a company to obtain workers comp insurance through, but I am having trouble getting anyone to return a phone call with a quote or I'm being told that they don't write workers comp policies. Does anyone have any suggestions on how I can go about obtaining insurance, and can someone give me an idea on what to expect cost wise? Any info will be greatly appreciated.

    MATTHEW LawnSite Senior Member
    from NE OHIO
    Messages: 665

  3. LawnLad

    LawnLad LawnSite Senior Member
    Messages: 738

    Correct me if I'm wrong, but isn't Workers' Compensation Insurance a state run program? Here in Ohio it is. There is no competing "company" or entity - Ohio BWC is it.

    Now - you can shop for group plans. Is this what you're referring to?

    Here in Ohio we get solicitated all the time by companies selling the group rating. They get a list of existing employers who have been in the system and solicit those on the list. In order to be eligible in Ohio certain guidelines have to be met, and one of them is lenght of time in the BWC system - so just starting out you wouldn't be eligible for discounts. As soon as you are eligible in your enrollment period - join! There's nothing to it and it's worth it.
  4. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Messages: 295

    Ohio is a monopolistic state for Worker's Compensation (I think there are 5 total) which means that the State provides the coverage. Fla. is not monopolistic, you obtain coverage from insurance companies. If you have General Liability, go to the agent that provides that coverage for you and they should work for you to secure coverage. There is not much commission in a small worker's compensation policy, and the coverage itself is not making money for insurance companies, so unless you have a relationship with an agent they are not going to spend time as they don't make much money (sound familiar?). Non-monopolistic states also have residual markets (AKA assigned risk pool, I think it may be a Joint Underwriting Association in Fla.) as a last resort, however you still have to access through an agent. If the agent that has your GL coverage won't help, find another agent!! JD
  5. C4chris70

    C4chris70 LawnSite Senior Member
    Messages: 501

    Thanks for the help. I finally found an agent that would write a policy for me. The policy will run me $17.30 per $100 salary paid.
  6. Doc Pete

    Doc Pete LawnSite Gold Member
    Messages: 3,469

    Wow, that's high. Make sure the company is giving you the correct catagory. There are many Catagories. My company, at first, gave me the wrong description. It's important if you do "lawn maintance" only, or full tilt landscaping with running a backhoe and stuff. Check it out. Your state should have a site that lets you check the classifications and descriptions of exactly what you do. Hell it's no skin off the insurance companies nose to give you the higher "wrong" quote.
  7. LawnLad

    LawnLad LawnSite Senior Member
    Messages: 738

    Wow... 17.3% is high. But if that's the norm for Florida, so be it. In Ohio for maintenance we're about 5.5%. Even lower if you're in a group program.
  8. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Messages: 295

    Fla. rates are high because benefits and rehab costs are high, as a result it is very hard for insurance companies to make a profit on Fla. Workers Comp. The benefit levels etc. vary by state, they are not uniform. The market avaliability has been much less than in other states and for years the majority of risks went into the assigned risk pool, which often times carries a surcharge.
    Keep in mind that the taxpayers of Ohio underwrite the cost of the coverage in their state and Employers Liability has to be purchased as an endorsement to your General Liability policy as it is not provided by the state, no profit motive.
    There are also state exceptions to the classifications, so if your state has an exception class for mowing only, fine, if not the class is more than likely Landscape Gardening. JD
  9. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Messages: 295

    Did some research, Florida has a State Special Class: Lawn Maintenance-Commercial or Domestic & Drivers-9102. JD
  10. Kyle Carter

    Kyle Carter LawnSite Member
    Messages: 13


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