Workers Comp Exemption

[mikecross23]

I am ready to venture away from my 8-5 M-F desk job and focus more on my tree service. Until I have enough tree business to keep me busy more than the average 3 days a week I get now, I am going to do other odd jobs to fill my dead time and supplement my tree service income. One offer from a friend was to get some comp papers and help him w/ his construction biz as a subcontractor at an hourly rate. I don't fully understand the concept of comp exemption yet, but he can pay me a better hourly wage if he doesn't have to pay workers comp on me.

In relation to the freelance climber thread, would a workers comp exemption be useful for a subcontracting climber. Is it a waste of time? I would also like to sub to other small tree companies that may need a climber for a day or two here and there.

The filing fee is only $50, so either way I'm going to do it to please my buddy and make for a better working relationship and a better hourly rate. I just wonder if there might be another benifit to this scheme.

Thanks
-Mike-

 

[John Paul Sanborn]

What is being talked about is a leagal fiction to satisfy a clause in his W/C policy that states all subs must be covered with W/c or their fees will be accounted for as payroll.

So he asks you to get a policy as a sole proprietor, and you get a self exclusion. Your certificate of insurance only sais that you have a policy, nothing mentioning that you have the exclusion. Then when the audit comes up, you have no employees so most of the money of the policy comes back.

I've been uncomfortable with this, but looked into it. They have a minimum $900 premium for Wisconsin W/C pool. I may do it one of these days just so I can hire a grounder legitimatly and with a clear conceance.

 

[mikecross23]

I submitted my comp papers today. $50, copies of occupational licenses, and a liability insurance policy were all it took. After reading more into the exemptions fine print I realize this isn't something I should throw out for no reason, but it will satisfy my needs for the non-tree related work.

It might be helpful for those over cautious customers who freak about liability and throw the 50 question quiz to make sure I can't hold them liable for ANYTHING.

Last weekend I did a large removal and a prune and dead wood of 7 water oaks. During the walk of the property, the home owner asked me 1 liability question between every tree we talked about. Then he had the supreme court justice living next door draft a liability waiver before I started the job. I could have just stuffed a copy of my comp exemption papers in w/ the liability policy and biz licenses and maybe the dude would have chilled a little!!!!!!!!!!!!!

My morals tell me I'm liable for what I do on a clients property, but this is a guarantee for them.

Does that make me vulnerable?

-Mike-

 

[crosscut tree]

mike your morals and mine arent in question here. but even oreo cookies are being sued now. from what i hear for having trans fat in them. In the litigious society we all seem to live in now. for your protection. and your clients Its best to play by the rules. if it costs you more money. and im sure it does it is just another cost you have to figure in on the job. sad to say the good old days of a handshake and a mans word. are getting further and further in the past .

 

[John Paul Sanborn]

OK I was talking about something different. We don't have the leagle papers in this state you are ltalking about. I was thinking of the self exemption one can get on a W/C policy.

 

[mikecross23]

JPS, That's what I'm talking about. The workers comp exemption paper work I just filed will allow me to work as a sole proprietor and be exempt from needing wc coverage on myself.

I've got two weeks until my state job personal insurance policy lapses but I'm trying to get my own lined up. Looking at a company called The Mega Life and Health Insurance Company. They claim that the policy will cover me 24 hrs a day on or off the job but they haven't gotten back w/ me re: the premium.

Covering my tail is 100% necessary and proof for inquiring nerotic liability crazed clients I'm finding is a must.

I'd like to hear some more talk on insurance and liability and workers comp. Speak up if you've got any thoughs.

-Mike-

 

[Newfie]

Even most waivers of liabilty aren't worth the paper and routinely challenged in court and often overturned. I think you are quickly finding that it is just a paperwork dance to assuage the mind of the customer.