tree business
ArboristSite Lurker
Does anyone know in the state of Tenn. is a tree service required to carry Workers Comp Insurance if they have less than 5 employees?
Workers comp
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I would think if you had any employees at all, you would.
Jeff
Jeff
gorman
Addicted to ArboristSite
Dude. Get it. It's like a condom, better to have one and not need it rather than need one and not have it.
You are asking at the wrong place. You need to ask the TN Division of Workers Compensation.
You got employee, get workers comp- save your tale should something happen. (Murphy is always lurking)
richard t
ArboristSite Operative
Get incorporated and get workers comp.
Keep your money and the company's money separate
Keep your money and the company's money separate
The Herring
ArboristSite Lurker
It was my understanding that Workers Comp insurance is always required for any business unless you have no employees at all. I forget the specifics but it is all part of a giant quid pro quo inherent in workers comp law. You are required to have workers comp for every employee (even desk jockies) that will cover them for injuries on the job without the employee having to prove fault or negligence on the part of the employer in the event of an injury. In exchange you typically can't get screwed millions of dollars for all kinds of pain and suffering nonsense, the liability is more or less capped at medical expenses and lost wages. Since you would have insurance you dont directly pay the claims, but you will probably suffer higher premiums if you have a high claims rate. I dont know that this covers gross negligence. Given the potentially hazardous nature of tree work, it only makes sense. It is just the cost of doing business, or more specifically having employees. Either pay the insurance bill and pass it onto the client, or find a way to get rid of your employees. (Take them on as general partners in the business?) At the end of the day employees or not if someone gets hurt someone has to pay, if you dont have insurance it will end up being you. So unless government forces your hand, you need to figure out if you want to shoulder that liability exposure on your own.
The cost of not having insurance is significantly higher then if you do, assuming something ever did happen. In Maine, employer's must have it but the employer may opt not to carry it on themselfs. I know a couple of small tree outfits that employ climbers as subcontractors rather then employees thereby pushing the issue of workers comp on to the climber
Griff93
ArboristSite Operative
It depends on the state. In Alabama workman's comp is not required unless you have 5 or more employees. We do not have workman's comp and can't afford it as it prices us out of the market. Only the very large outfits around here have it.
richard t
ArboristSite Operative
In Kentucky its three or more employee's i believe.
treecutterjr
ArboristSite Operative
All Kentucky employers with one or more employees is required to maintain workers comp insurance
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gtrees
ArboristSite Member
You can't not afford it
Griff93
ArboristSite Operative
This is a sore spot for me. I really want workman's comp for my guys but I've tried repeatedly to get it at a price I could put in the budget. The last quote for a premium I got was $48K to cover three employees. That $48K has to come from somewhere. If I want to actually get work, I'm not able to raise my rates much. I already lose out to a lot of people around here that work to cheap in my opinion. Quite a few 1099 their employees even. Just paying my employee's as such puts me at a disadvantage. I regularly get underbid by another tree service that 1099s their guys or pays cash under the table. Their normal mode of operation is to illegally dump so they don't have to pay the dumps fees.
treecutterjr
ArboristSite Operative
What % is tree workers comp there?
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climbhightree
ArboristSite Operative
I pay $32 per $100 here in PA, i get it through the state
. At this point I only have one employee, but may be adding one or two come spring.
Everyone around me pays their employees under the table or 1099, both are illegal with the way they are doing it.
So I preach it to my clients, and potential clients about why this is a dangerous thing for them as property owners. I tell them I carry full and proper insurance for their protection, and mine.
Oh, and I'm been booked 3-4 month out for a year now.
"Kiss My Axe"
Associate degree in forestry from PSU Mont Alto
Certified Arborist
Owner/operator of Climb High Tree Service established in 2002
www.climbhightree.com
https://m.facebook.com/ClimbHighTreeService
https://www.youtube.com/user/climbhightree
https://www.youtube.com/user/2treekiller2
. At this point I only have one employee, but may be adding one or two come spring.
Everyone around me pays their employees under the table or 1099, both are illegal with the way they are doing it.
So I preach it to my clients, and potential clients about why this is a dangerous thing for them as property owners. I tell them I carry full and proper insurance for their protection, and mine.
Oh, and I'm been booked 3-4 month out for a year now.
"Kiss My Axe"
Associate degree in forestry from PSU Mont Alto
Certified Arborist
Owner/operator of Climb High Tree Service established in 2002
www.climbhightree.com
https://m.facebook.com/ClimbHighTreeService
https://www.youtube.com/user/climbhightree
https://www.youtube.com/user/2treekiller2
Griff93
ArboristSite Operative
50 to 55% is what I've been quoted. The insurance folks I've talked to want $5K down per employee as well. Everyone I've talked to has refused to base it on actual payroll. They all insist on calculating it at a 40 hour work week. My guys usually don't get 40 between rain, finishing up for the day before 8 hours, lack of work, etc. Not to mention the winter time slow down. I have two separate businesses. One is my tree service and the other is a fabrication and maintenance shop. The lack of being able to get workman's comp is making me want to sell off all my tree stuff and just do my shop.
gorman
Addicted to ArboristSite
That's crazy man. It's like 14% here in RI.
Rates in CT are 31%-41%. I think we are at 34%.
Ohio is 50-some% unless you are part of a group (need to be in business for a year with no claims before you are eligible). With group rating it is around 25% or so...just reported payroll last night, so I should remember more precisely...but it is what it is, so I don't pay attention to the exact rate.
