workmans comp

[tinman44]

my new company (founded in jan 2005) is having problems finding insurance. i tried an internet site where they boasted ppl would call me and compete for my business but no calls yet. so any ideas about insurance? (liability insurance 1mil would be right)

 

[Lumberjack]

No, I carry general liability.

Right now we are all still young enought to be covered under out parents insurance. If i get just get a chipper and dump trailer I will probably be charging close to 200 an hour.

One thing I thought of is perhaps your just working awfully slow. That is the only thing i can think of. We constantly make 115-125 an hour. Sometimes it gets down to 100 but thats rare.

 

[DDM]

Tin, Commercial tree insurance is hard to get the company you emailed probably doesnt handle tree's. Hartford might insure you. You'll probably have to have verification of 10 yr's experience.

 

[John Paul Sanborn]

I only skimmed the thread, so sorry if this was asked already; how many quotes did you get to come with a 39% of payroll? Here in WI the state pool is 22.14% (I heard that Cali is like 55%) many private policies are less.

Is your salery in the payroll? Most owners get self exemptions.

Most policies start out high then go down as you work without any claims (many guys I know self insure the small Dr. visits, like sawdust in the eye, just to avoid the claim).

I think if you hunted around you could get a better rate.

 

[Ekka]

Well, over here in Oz the state govts run the wc to stop private company rip offs, the worst I have heard of is 17% and I pay 2% because no claims in 6 years. You start at 6% if you have no adverse history.

We also have a web site where the consumers (yes customers) can run your business number with the govt to check on your insurance, just like that, instant, bingo or your busted! :Eye: And I tell all the customers so it makes my chances of getting the job better when they see that my competitors are full of crap. Not to mention that I run competitors thru the system and dob them in.

Contractors including climbers who bring their own gear still need to be covered as the wc govt ruling states their predominant supply to you is labor, they do not bring significant machinery (like some-one stump grinding for you).

Yes, the step from climbing etc to running a business is significant, so are the costs and responsibilities. You have to put your prices up and like I've said elsewhere be prepared to work for the change, when you do a $1000 you may end up with $250 ... welcome to the business world.

Price according to your cost/profits etc. Often customers tell me "oh yeah but so and so can do it for $200 less will you match it?" I'll let you answer that one but remember, why work for nothing when you can go broke sitting at home.

So often good tradesmen go it alone and fail, it takes more than being a good tradesman to run a good business. Many end up going back to the tools and frankly are better off. How many of you guys have earned less at the end of the day than your highest paid worker?

Turnover is vanity, profit is sanity. Do it right and price it right according to your skills, equipment and overheads and you'll be ok.

Over here we also have to pay 9% compulsory superannuation ontop into the workers super account. How many do you think break that rule, well I dob on that too, so slowly the low ballers get out or get busted.

We also have tax office hotline dob ins for dodgey cash deals, that's a treat for doorknockers, try get their rego and details and dob them in.

 

[Stumper]

Ekka, I realize that reporting all of your competitors for their "violations" is in your own self-interest on one level but have you considered that you are helping to consolidate power in the hands of freedom quashing government meddlers? :angel:

 

[tinman44]

Tin, Commercial tree insurance is hard to get the company you emailed probably doesnt handle tree's. Hartford might insure you. You'll probably have to have verification of 10 yr's experience.

luckily my partner was in the business for 17 years in iowa before he came to ga so we should be able to get insurance

 

[darkstar]

GOOD NEWS ,since i have been turned down for wc from 2 companies i am applying directly through the state of tennessee . my rate is 22.68 + several charges that apply at the start . this is good news as one insurance company quoted 39.00 dark

 

[alanarbor]

A couple of key points to help keep your WC low....

1.) Don't let anyone get hurt (I know, DUH!)

2.) Have an employee manual with a clearly outlined safety policy, and enforce it.

3.) Have a documented safety training program.

4.) see #1

I'm not trying to pimp TCIA here, but if you're a member, they have lots of resources to help you establish the above. As you move forward with your business it may be worth joining. There are some other resources availible on the web as well.

Tree Care Industry Association

Employee handbook template (not free)

Some tips on writing an employee manual

And also I'm sure you can ask other members on this site how theirs is set up.

 

[darkstar]

I am member of the isa but not TCIA . Thanx for the replys,looks like we will be covered by the end of next week[except me]. I will try and raise bids over the next month and use w.c. as a selling tool . Appreaciate all the helpful info.

 

[Dan Flinn]

Hey Darkstar...

I feel your pain. I paid .42 on the dollar for WC. What put me out of business is when WC charged me for the dollar amount I paid for subs.

I contracted for wood removal. He mostly removed the good stuff for free, but charged for the stuff he had to take to the dump. The last year I was in business, I had about $3500 in wood removal expenses. Do the math and it comes to a little less than $1700 for WC. The kicker is that they charged me at the .42 rate - not the rate for a guy that sits on a truck and loads wood.

Anyway, when I got the bill for the next year that was around $4000 due and payable, my decision was made. Poor cash flow management and I couldn't pay that bill. Now I work for other companies that have it.

I can tell you that My rates were $50 to $55 a man hour for my truck and chipper. I saw that you are a member of ISA - are you certified? The day I became a certified arborist, I went from competitive bidding to "just do the work and bill me". I don't want to start the old argument about the certification, but I can tell you that it was well worth the time and cost.

I, too was small - F700 and a bandit chipper and 3 helpers. I was "part time" as I worked for the fire department.

I guess what I want to say is that I commend you for adding wc. In my area, there are only a few companies that can sustain it - and they charge for it. Mention it to your customers when you give the bid, they will appreciate it.

Dan

 

[begleytree]

Go ahead and sign up for W/C. It won't take long for offers to come in to join groups.
Mine started at .56 for every 100 of payroll (and I self cover) group dropped it to .17 for every 100. Also, please look into setting up your co as an LLC, its easy, and it shields YOU from personal liability in the event of a lawsuit, and keep/put most of your equipment (at least whats paid off) in YOUR personal name. Helps to keep it where it can't be touched. Keep your payment equipment in the LLC'd co name (there's really no equity to go for on it) then when paid off, sell it to yourself for $1. (and change the title)
-Ralph

 

[hobby climber]

Liability insurance to protect the customer, w/c to protect the employees, and Incorporate your business to protect you and your family. or something like that ... you get the idea. HC

 

[vharrison2]

In Florida you have to carry it. We use a leasing company for our employees to get a much better rate. The leasing company does all the payroll,wc. We use First Financial. Their number is 1-800-624-1805