Insurance for a few jobs a year

[Matt J Leppek]

Hey all,

I've been looking at getting insured for general liability and workman's comp for myself. It looks like I will be paying roughly 3-4,000 a year. If I wasn't in college and I did it full time, this would be no problem.

I do less than 10 jobs a year solo. In fact within the last 365 days I have only done 2 solo jobs. Chances are, the cost of insurance will be more than what I make in a year from doing this.

I have 3 years experience in doing tree work, and I've only been climbing a year. I'm still quite green, but I know my limitations and have walked away from more jobs than I have accepted.

This being said, is it reasonable to work without insurance for the few jobs I do a year? Or should I bite the bullet, get insurance, and hope I can find enough jobs to profit?

Thanks in advance,

Matt

 

[Griff93]

Matt,
If you have ask if it's reasonable to work a few jobs without insurance, then you don't need to be work jobs for the public. Please go get a part time job climbing for someone.

 

[Matt J Leppek]

Point taken, thanks Griff.

 

[Griff93]

Thanks for not taking that the wrong way. I wasn't trying to be a jerk. Another perk of working part time for someone is you will probably learn more from them.

 

[JeffGu]

A million dollars of liability insurance, without addon coverage for your tools and equipment, will run you between $600 and $800 per year (it varies by location a bit). I wouldn't jump on the first quote you get... shop around. Read the policy carefully and ask a lot of questions... the agent will likely try to rush you to sign it right there on the spot and you'll miss some of the lovely hidden costs they like to throw in there, like a membership fee in an insurance group club with no real benefits whatsoever (like a 10% discount on hotel rates which is nothing since you can beat that by a large margin just by using any of a hundred travel sites). These fees are usually mandatory, you have to join their club for the privilege of paying too much for their insurance. In other words, a scam to make you think their insurance quote is lower than it actually is.

 

[Matt J Leppek]

I understood what you meant Griff, no worries there. I asked on here because I felt dirty bidding jobs without insurance. I gave my cousin a call yesterday, who works for State Farm. She said all I need is general liability insurance, and workers comp isn't necessary as a sole propietor (I remember reading on a forum that sole propietors need workers comp for themselves, but a couple agencies I talked to disagreed).

Now that I know I only need general liability, I'm going to get insured for sure. I really love doing this work, but it was a much harder decision when I thought I was going to pay over 2,000 a year when I may not get enough jobs to break even.

I'm still going to work for the tree service I started out with back home, but it's nice to be able to do work on your own while you're 3.5 hours away at college, you know?

Thanks again for the replies all.

 

[Griff93]

The insurance stuff varies a lot by state. Here we aren't required to have workman's comp until 5 or more employees. The insurance thing may save your butt one day if you screw up. It might keep you from getting sued. What are you going to school for?

 

[Matt J Leppek]

Exactly, you don't need insurance until you really need it, and by that times it's too late if you don't have it...

I'm going for digital media. I want to make short films and documentaries that encourage people to question their beliefs and break stereotypes. For now I'm doing a lot of marketing work and commercials to build up some money to create short films.

 

[nepal4jc]

Matt,
Some of the things to look for when insurance shopping are:
1. What is the amount of coverage per job, and then what is the total aggregate amount per year that you're covered for.
2. If you spur climb, what is the highest you're allowed to climb. Some of these will vary, I had one company say I can't go higher than 30' off the ground.. I asked them what I'm supposed to do w/ an 80' NC pine?! Drop 50' and hope it goes right?! They didn't have an answer so I hung up.
3. Understand that for MANY insurance companies in this line of work, it is going to be based off of how much you make yearly, what your experience level is, and what resources/safety guidelines are you following as well as years of experience.
4. I highly recommend, if doing this ONLY part-time, to find someone w/ solid work experience and great reviews and try to get hired under them! You can't beat that kind of training/experience, plus, if you start to hate it, it's only part time and you haven't sunk a TON of money into the biz.
5. Look into what it costs to have an LLC in your area. This way, if someone wants to take you to court, it's against the biz and NOT against you directly. Look up your county/city regs as well - there may be other licenses/requirements that you have to maintain in that area.
6. SHOP AROUND, as Jeff Gu said... the first quote isn't always the best, or safest for our line of work. I highly recommend Rick Weden – 781-235-3100 ext. 231. Give him a call and explain to him what you're looking at doing, what experience you have, and he'll give you some solid advice...
7. Workman's comp, like Matt J said, is something you don't need until it's too late. If you're a college student, are you under your parental insurance program? Will they cover accidents handled by you while performing a work-based operation?

Just some things to consider as you're looking into the biz... best of luck!

nepal4jc

 

[unclemoustache]

I have 2 mil for my insurance at the 'construction rate' as I do mostly home remodeling, but I also do some tree work. Ins company doesn't like me doing tree work, and my agent told me that if I ever have an issue, they would pay but would probably drop me. I'd find it difficult/more expensive to get insurance after that.

 

[Jhddreck]

Matt,
If you have ask if it's reasonable to work a few jobs without insurance, then you don't need to be work jobs for the public. Please go get a part time job climbing for someone.

I think without

Matt,
If you have ask if it's reasonable to work a few jobs without insurance, then you don't need to be work jobs for the public. Please go get a part time job climbing for someone.

This is an old post, but thats not fair to say, without knowing the risk assessment to the jobs he's taking that's a bit extreme to say. Is he taking massive overhanging limbs or removals over buildings, or topping trees in the back 40 where there is little to no risk? Based on his initial question we have no idea.
I'm willing to do work for the public without insurance on occasion, but I also weigh the risks and know when to pass it off when the stakes start going up.
Not having insurance doesn't mean you shouldn't touch any tree work, however it should determine what jobs you should or shouldn't take.