Insurance in Uncharted Territory

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Nickrosis

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Our present insurance carrier quoted us a figure for next year that hit $120,000 for the premium, a sum twice what we're paying now. It covers Workmen's Comp, umbrella, liability, etc. We shopped a little and found someone to carry us again next year for this year's premium, but I'm concerned that in the future we will not be able to sidestep such a blow again.

I keep hearing about insurance all over, and our health insurance costs hit $30k or so this past year... Sure makes me want to consider being an employee instead of an owner! But I know it hits everyone when companies go out of business, it's just that we as a family have a lot more invested than an employee does.

Nevertheless, it's business issues like these that are more likely to put corporations asunder than a lack of passion for trees or any kind of biology understanding. If you can't solve business problems, you'll never even get to see the tree problems. More and more, I'm glad I'm going back for a master's in business - I just hope that life serves problems that have answers beyond closing the doors.
 
I feel your pain, Nick. Our Worker's Comp carrier stopped writing policies for tree service this year, so I had to shop around for coverage. Quotes ranged from $80K to over $100K! Ouch! I ended up switching to a leasing company that covers all payroll expenses, plus worker's comp for less than last years rate.

I can't encourage you enough to get that business degree. I too have been going to school part-time in the evenings to get a BS. As passionate as I am about tree care, I really suck at running a business, even though I've been doing so for over 19 years. I recently hired a consultant to try to streamline my office procedures and then help with field production issues.

Good luck to you in school. Have you ever considered merging with another company. Six months down here in the winter, and six months up north during the summer. :angel:
 
Originally posted by arboromega
what is that undergrad in? horticulture?
Yeah, don't listen to those moderators. My "user text" (the words above my picture) were changed without my knowledge. :confused: I think "Lurking Pot Stirrer" would be most appropriate. :)

My undergrad was in Urban Forestry. Oh my, past tense already. I just got my diploma in the mail on Saturday, and I've reflected on the value of it. Certainly the best thing I could do at that point in my life - living on my own, doing something outside of the family business, learning about the science side of the business, and being president of both the Student Society of Arboriculture and Student Government Association taught me much that I never expected to learn.

I know that I'll be involved in student organizations here at UW-Milwaukee as well (my bro is the pres of the American Medical Student Association) and continue to learn about things that are not on the syllabus. At the same time, though, I really want to get a handle on employee and government relations and productivity. I think those two areas need the most improvement for us as a company, and I've taken a strong personal interest in it as well.

Merging? Well, national corporations have looked at us and made offers, and we're always scoping out other companies and making offers, but I would like to get serious about it in the next couple of years and see what we can do to hit $5M and $10M. At the rate of insurance hikes, we have to grow to handle them! Perhaps we'll start our own insurance company like some other treecare companies have. :cool:

All in all, though, Rocky is right about one-man operations that crop up in storms and wreck things for the other small businesses around. And Guy is right, too, about people with an idea in their head that they can be tree care providers with what they bought from Home Depot.

Oh, not a bad book for anyone who wants to improve their business skills.

http://www.amazon.com/exec/obidos/tg/detail/-/0028644492/002-0969074-8210430?v=glance

I'm reading it now to compensate for the fact that I've never had a business course, yet I am still entering an MBA program in two months. Wow this summer is going by! Hey! If I work 20 hours a week this winter, my salary equates to $34 an hour! Sure beats the $10/hour I'm getting now with these long weeks. :)
 

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