Workers comp

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since16

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So I've been in business for awhile full time over 1 yr always 2mil liability insurance every vehicle chipper saw has full coverage theft exct. I've always hired family and friends but need to find another guy who won't b. Looked into workers comp thru the company that does all my other insurance was quoted 26% and 5k down just to finish out the year! I'm doing all the climbing was wondering what company people are going thru and what is a good rate. I want to get it but if that's the cost It's gonna b a problem:(
 
That is the cost. I don't know NE law, but in most states, if you don't have Worker's comp, that is going to be a problem.

Oh, and to answer your question more directly, I get it from the State of Ohio...that is our only option being in a monopolistic State.
 
26% of what?

Can you run a tree service under agriculture? Maybe different elsewhere but here it removes alot of rules for having workers.
 
Gotta go through state here too. Not many companies want to insure tree work. Too risky

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Gotta go through state here too. Not many companies want to insure tree work. Too risky
No, you don't HAVE to buy it from the State in KY - you are allowed to buy it from a private insurer. It is law that employers in Ohio must buy coverage from the State (Washington, ND, Wyoming are the others then WV...allows for a single insurance company to sell)
 
We've only got 1 other place besides KEMi that'll take tree services. Every one else says they don't cover tree service. Too high risk

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But correct we don't HAVE to get it from the state. We just have very limited options

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Look into safety training and drug testing. Former employer of mine had 1 claim on workers comp. They raised the rate to 36% IIRC. He contemplated moving us from payroll to 1099 subcontractors. Eventually signed up for safety training, drug abuse training, and quarterly random drug testing for 50% of employees. Lowered the rate to high teens. Training seminars amounted to a couple days a year spent in a classroom and many trips to job and family services to poss in a cup. Might be worth looking into. Or look into going to 1099. Most tree services around me 1099 their guys.
 
In Minnesota the fine is something like $1,000, per employee, per week if you do not have worker's compensation insurance. Not sure if family members are exempt, but your friends are not. If you 'hire' someone, but call them a 'contractor', they can still come after you - there are very specific criteria to be verified as 'independent'. You may want to check with a WC lawyer in your state.

Philbert
 
I'd love to get 26%. We aren't required to have it here in Alabama. The last quote I got was 54%. When everybody else in our area doesn't have that cost, it's hard to afford it.
 
People who complain about the rates have to remember that it's their industry that sets them. Office workers don't pay those types of rates, because they don't fall out of trees on a regular basis. That's also why landscapers and even carpenters pay less.

If you don't carry it, you are putting your business (and maybe your personal assets) on the line. Personal injury lawyers are good at piercing the protection of corporate or LLC status if they can show that the company was 'undercapitalized' or avoided 'due diligence'. As for the 'independent contractor' thing, the lawyers also have a saying (this one was for roofers): "Most guys are independent contractors on the roof, but become employees on the way down".

It's something that you can use to promote and distinguish your company, by letting people know that you are 'fully insured'.

I carry work comp on myself, even though I am not required (owner/sole employee) because I go into some harzardous places, and know that I am covered even when driving back and forth between work sites, etc.

Philbert
 
Slight correction: rates are set by the schmucks who don't follow safety protocol and the rest of us are stuck paying for their stupidity.
 
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