Having trouble finding workers comp

[hank the tank]

I'm a certified arborist in Florida with 8 years under my belt. I have been a foreman for 5. I am almost ready to make the leap and start my own thing. Ideally, I would like to start off with side jobs to get my name out there, and avoid getting into debt.

I have registered my business as an LLC, and purchased a million dollar insurance policy. I am having trouble finding anyone to provide me with workers comp. it is mandated here in Florida, so I know worse case scenario I could go through Florida underwriters, but I hear they will charge me a minimum premium of $5000. I do not think I will generate enough weekend work for this to be cost effective for me with my equipment and liability insurance. I will be hiring a maximum of two employees first year.

Is starting a part time business even possible let alone profitable?

Is my only choice to quit my job and go full time with this thing? If work doesn't come in, do I go full fledged hungry hack and start knocking doors to get above water? Will I ever find a new wife if I lose my ass?

Or maybe I should apply for workers comp exemption for myself and work alone.

Any ideas or similar experiences?

The way I look at it is I'm much less of a risk than a company who works full time. why won't these WC companies give me the time of day?

 

[Pelorus]

Hank, being from a socialist country to the north of you, I can only offer you empathy. It's inadequate, but it's all I got. Sorry.

Just a thought - if you get a worker's comp exemption for yourself, could you sub-contract other guys to help you as/when needed if they had similar exemptions, or their own worker comp coverage?

 

[hank the tank]

Hank, being from a socialist country to the north of you, I can only offer you empathy. It's inadequate, but it's all I got. Sorry.

Just a thought - if you get a worker's comp exemption for yourself, could you sub-contract other guys to help you as/when needed if they had similar exemptions, or their own worker comp coverage?

That may be an option. The only thing is (I believe) they would have to use their own equipment. They are considered my employees if they use mine. another option is to make my guys >10% owners and file for exemption but I really would just rather have the workers comp in case something ever did happen. I just don't want to be gouged for it.

 

[jaystihl]

hey hank, i am in fl as well. you do not need workers comp with under 3 employees plus yourself . that is for the state, HOA's are a different story but sounds like your not ready for that . Dont get me wrong its always a good thing to be covered, but just letting you know what the state requires. good luck , and dont do anything i wouldn't do. Just kidding brotha, always, always, always be safe and never step outside of your comfort zone over money. Its not worth it, trust your knowledge , and progress from there

 

[jaystihl]

by the way , yes you are on the hook for subs, honestly not worth it , unless its something your not comfortable with, in that case make sure they have workers comp. always. either way you are on the hook

 

[hank the tank]

hey hank, i am in fl as well. you do not need workers comp with under 3 employees plus yourself . that is for the state, HOA's are a different story but sounds like your not ready for that . Dont get me wrong its always a good thing to be covered, but just letting you know what the state requires. good luck , and dont do anything i wouldn't do. Just kidding brotha, always, always, always be safe and never step outside of your comfort zone over money. Its not worth it, trust your knowledge , and progress from there

Great news if true. So I guess tree care wouldn't be considered construction then? I've been getting some bad advice. It's not that I don't want workers comp, it's that I literally cannot find it or afford fwcjuwa's outrageous premiums if I'm just doing weekend work. When I go full time with this, It will definitely be a necessary cost and will not be such an issue.

What part of FL are you From?

 

[jefflovstrom]

The way I look at it is I'm much less of a risk than a company who works full time. why won't these WC companies give me the time of day?

A company that works full time and has employee's usually have a safety program in place with training and documentation.
That is a better risk than a guy starting up with no history.
Jeff

 

[hank the tank]

A company that works full time and has employee's usually have a safety program in place with training and documentation.
That is a better risk than a guy starting up with no history.
Jeff

While that's true, the company I currently work for is one of the only companies around that actually has a safety program. I've personally been through countless safety classes through my employer, Vermeer, TCIA, And ISA. From Aerial rescue to CPR/first aid. None of that seems to matter since insurance companies won't give me a chance to even tell them. I guess the first few years I'll have to bite the bullet, pay the high premiums, and do it all again for my own company until I can create a history.

 

[hank the tank]

Basically I just wanted to know if anyone else started the same way, and if they had an issue finding somebody to cover them or who would you guys recommend contacting.

 

[Griff93]

I've run into the same thing. I'm in Alabama and here we aren't required to have it until over 4 employees. The last quote I got was $16,000 per employee per year for the premium with $5K per up front. You see 4 man crews all over the place around here. This is a sticking point for me as an owner. I want my guys covered but I simply can't afford it in this market. As it is a lot of our competition is already not legitimate in one way or another. Unfortunately I don't have a good solution for you or me.

 

[jefflovstrom]

I hear you Hank, sucks, but it is what is is,,just be glad you do not live in California,,
Jeff

 

[gorman]

Given that workmans comp is based on a percentage of payroll, I believe you would be credited funds if your payroll didn't meet what you put down for. They audit you every year. Call and find out.