# Workmans comp what is too much?



## Barry Stumps (Mar 5, 2007)

Hello, I am looking to add workman's comp for 1 man. I am new and haven't taken any quotes other than one in my local town. He said it was $1200 a year. I thought that was way to high. I only do this part time but am wanting to get into tree removal. It would only take one injury to put me out of commission but man that seems high. My million coverage for property is already $1300 a year. Is this in the ball park or should i find Internet quotes. I'm in a bit of a hurry i have some jobs this weekend to do. Thanks


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## stipton (Mar 5, 2007)

Workers comp rates are dictated by YOUR home state and the rates given by competing brokers will be relatively close in price but will vary with credits given for experience and length of consecutive years carrying workers comp. Each line of business has its own code (0963 Office/Retail) and its own MINIMUM premium (0963 $265.00). 

I don't know the code for 'tree removal' or the min. premium, but can pretty much guess it ain't cheap due to the potential dangerous working conditions. 

If you are getting it for yourself, why not get a disability policy, like Aflac, to supplement your health insurance in case you are hurt on the job. If it is required to be a sub, then cough it up.


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## begleytree (Mar 5, 2007)

Look into joining a group. first contact is your local chamber of commerce. a group can lower your rates by as much as 75% or maybe even more. you dont have to look for a tree company group, any group can save you a lot of money, savings will be similar between the groups.
-Ralph


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## bushinspector (Mar 5, 2007)

Hey Barry Stumps:

I can feel your pain and I am in the same shape. What scares me is one ambulance ride will cost a least $600.00 for one trip to a hospital (and that is on the low end). We are in the start up mode so everything is tight, but all in all we are doing very well. We are in the situation that we are working full time jobs and doing this on the side. We are not only doing trees but are doing some landscaping as well. On another post it was being discussed about saving some money from being an landscaping company. The sticky thing is where is that line? Stipton may have the right idea with a disability policy.How much could one save if you had a $1000.00 deductiable? Or even higher?


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## ATH (Mar 6, 2007)

State laws vary here...

Ohio is one of 6 mononpolistic states (Nevada, North Dakota, Ohio, Washington, est Virginia and Wyoming). Here the State does not allow private insurers issue WC insurance.

Without group rating, workermans comp for our industry is aroud 45-49%. That means for every $1 you pay an employee, you pay the Bureau of Workers Comp 45 cents.  If $1300 covers your guy for the year, be happy.


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## begleytree (Mar 6, 2007)

ATH said:


> State laws vary here...
> 
> Ohio is one of 6 mononpolistic states (Nevada, North Dakota, Ohio, Washington, est Virginia and Wyoming). Here the State does not allow private insurers issue WC insurance.
> 
> Without group rating, workermans comp for our industry is aroud 45-49%. That means for every $1 you pay an employee, you pay the Bureau of Workers Comp 45 cents.  If $1300 covers your guy for the year, be happy.



last time I looked, it was 54% for tree care operations. :bang: 
I didnt know what I was doing when I was offered membership in a group and thankfully I took it. I'm paying @ 12% for tree care operations now.
-Ralph


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## ATH (Mar 6, 2007)

begleytree said:


> last time I looked, it was 54% for tree care operations. :bang: ......


Hey, maybe the "reduced" rate is a sign that we are doing better with the safety thing! (I am pretty sure it is 49% now) We certainly know it isn't successful investing by BWC. I just applied for gorup rating, and am really hoping to get picked up.

So the answer to the original question of How much is too much: Ohio.


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## Barry Stumps (Mar 6, 2007)

Wow, I sure wasn't expecting that. I guess I will just have to budget that in. I know a piece of mind is worth something. The problem is that i do this part time but want to convert full time as the business expands so money will be tight for awhile to justify the cost but it would only take 1 accident to destroy my future plans so i guess i will cough it up. Thanks for all the input this sight has been great.


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## John Paul Sanborn (Mar 7, 2007)

ATH said:


> Hey, maybe the "reduced" rate is a sign that we are doing better with the safety thing! (I am pretty sure it is 49% now) We certainly know it isn't successful investing by BWC. I just applied for gorup rating, and am really hoping to get picked up.



Any where you go you will pay more when you start. The more years with minimal claims you have, the lower your primium is.

Also look into weather sales comission is included in payroll wages. I've heard of some people being able to compensate key personel more that way. Not all states allow to split between landscape and treework. If you do the high risk work, that is where you pay from.

Some states allow to break it out on the same job, from what I've heard. Groundmen who do not operate saws are lanscape cleanup...


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## bushinspector (Mar 7, 2007)

Hey John Paul Sanborn:

How does that all work out when we are putting all of proceeds back into the business and we don't have a payroll. What we are really interested in is preventing a large medical cost with a accident. Our current jobs would not want to cover us while we are getting paid for work we are doing. We are in the start up mode and just doing this part time for now.


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## ddhlakebound (Mar 7, 2007)

When I first inquired to local co's about work comp coverage for my partner and I, I was told that as owners of an unincorporated co., we were not elligible for work comp coverage. We would have to become a LLC, and list ourselves as employees of the LLC. 

I have not dug deeper to find if this is entirely accurate, but thats what I was told here in Missouri. 

I'd specifically be sure the policy covers you as the small business owner. Looking into a disability policy may end up being a better option.


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## maxburton (Mar 7, 2007)

Only employees are eligible for Worker's Compensation coverage. If you own the company, it must be incorporated for you to be considered an employee. Here in PA, if you're insured by the state (which is the only corporation that will insure you if you're new) you start at about 30 cents on the dollar.

A disability policy is much less expensive but has a limited payout, which WC doesn't. In my opinion, it's not a good idea to incorporate just so you can put yourself on worker's comp.


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## Husky137 (Mar 7, 2007)

bushinspector said:


> Hey John Paul Sanborn:
> 
> How does that all work out when we are putting all of proceeds back into the business and we don't have a payroll. What we are really interested in is preventing a large medical cost with a accident. Our current jobs would not want to cover us while we are getting paid for work we are doing. We are in the start up mode and just doing this part time for now.




As far as I know you can't protect a wage or salary that doesn't exist.


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## bushinspector (Mar 7, 2007)

We have become LLC due to wanting to seperating ourselves for any libility.


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