Workers Compensation Insurance ??

Discussion in 'Business Operations' started by CURB APPEAL NC, Feb 4, 2005.


    CURB APPEAL NC LawnSite Member
    Messages: 118

    Ive done some work for a real estate co. recently and they are telling me I need workers comp. even though i am a solo op. I can understand have liability ins. but why would I need workers comp. w/ no employees? thanx.
  2. wbw

    wbw LawnSite Fanatic
    Messages: 6,187

    If you can talk with the right person, they would most likely be satisfied with a "hold harmless" agreement. If not get the insurance. The premium will be based on your payroll and you can exclude yourself.

    CURB APPEAL NC LawnSite Member
    Messages: 118

    So if i can exclude myself there wouldnt be anybody to insure right? How much doesthis ins. cost round about? thanks
  4. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    It's based on your per $100 of payroll and I received an unsolicted price in the mail yesterday of $3.76 per hundred. If you are the only employee than you will have to pay it based on your payroll. Also some companies won't insure that way.
  5. mastercare

    mastercare LawnSite Senior Member
    Messages: 289

    The Real estate place wants to make sure that if you trip and fall, you won't ue them. They need to be assured that if an accident happens while you're working, that your company will take care of the problem, not them. Larger places typically require it. If you're working solo like me, I would speak to them and explain that as a solo operation, you're not required to carry it, since your regular health plan covers accidents. And, explain that it would be a ridiculous thing to pay for if you're only using it on one person (who's already insured) and for one job. I'm sure you could put something in writing saying that you understand the dangers and hazards of working on their property, and that you take responsibility for those.

    Not sure if it'd work, but put a clause in there saying you're not responsible for the negligence of other people. For example: A customer comes into the office. As they're leaving, they don't see you on the sidewalk and run you down. You don't want something in writing saying that you'll take responsibility. That could prevent the driver of the car from having to "fix you" using his medical liability which is part of his car insurance.

    Might be ridiculous.....but who knows what can happen?
  6. Rougher83

    Rougher83 LawnSite Member
    Messages: 34

    Curb Appeal NC,

    Not sure how your state governs this...but in Oklahoma if you are a solo operator, or you may have up to 5 employees that are either related by blood or marriage, you do not need workers compensation insurace. You do however need to include on your invoices a signed declaration stating this or you can obtain from the state labor department a card which basically says you are exempt from needing workers compensation. In short (I know too late huh), I would check with your local/state labor department. Hope this helps.
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    here in Michigan you do not need workers comp insurance for a solo operation. Even if you were to get it, you and your wife are not covered under it if you get hurt on the job. Its basically a waste of money. That is why you need health insurance
  8. specialtylc

    specialtylc LawnSite Bronze Member
    Messages: 1,656

    Here in Washington workmans comp is not available to the business owners and or executives. If it was I would buy it for myself. Because of that I buy private loss of income and accident insurance for myself and business partner.
  9. grass-scapes

    grass-scapes LawnSite Bronze Member
    Messages: 1,552

    I am in NC, Mostly a solo operation and I carry workers compensation. A couple of the larger accounts require it. I dug deep and found out why. Even though I am a contractor for this client, he can be charged for my "salary" on HIS workers compensation bill. If I am carrying my own WC, he doesn't have to pay.
    It also covers me if I have to hire someone for a few weeks during the busy season. My coverage is for up to a certain amount of payroll (around the 20,000 dollar mark) Cant remember my exact cost, but its not cheap but not unreasonable either. I consider it a cost of doing business.
  10. j fisher

    j fisher LawnSite Senior Member
    Messages: 294

    It's called a "Ghost Policy" Some commercial businesses require you to have workers comp even if your a sole operator. It protects them from being responsible if your injured while on there property. The reason it's called a ghost policy is that even if you have it and your injured, it does not cover you. Only employees, which you have none. You need to consider it a cost of doing business, if you want these accounts.

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