Insurance Cost?

Grumpy

I am putting together a business plan and I am trying to figure out how much I need to budget for workmans comp and general liability.

Should I get roofer's insurance, general contractor's inurance, or do like my boss does and get painters insurance

Nathan

You mentioned that you want to use only subs to start out.
Obviously you need General Liability insurance, but how does workman’s comp work for Subs? Don't they carry that?

Just curious

Grumpy

Home owners love seeing that you have workmans comp and hate hearing that you use subs. If I plan to work for home owners I need to have WC even if I am the only employee. It's just for show like a peacocks feathers.

I couldn't tell you the number of jobs I have sold simply because I had WC and the other guy didn't.

Unregistered

why are we paying for workmans comp out of our check and when were injured were not paid our whole check we make 40 hours a week or bi wekly?

Unregistered

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bryan e
why are we paying for workmans comp out of our check and when were injured were not paid our whole check we make 40 hours a week or bi wekly?

JD Molding

We pay big $$$ for insurance to operate in New Jersey. The sad fact is, almost nobody asks if we are insured. Not to pat ourselves on the back but, we are always on time, we have a neat and clean appearance and present ourselves in a professional manor. Not to knock anybody, but it just goes to show how important those few things are and how the homeowner perceives it.

JD Molding

Grumpy

As in life, it's the little things that are really the big things. Perception is reality.

Teetorbilt

Grumpy, there are a number of things that you can do to be WC exempt, look into it. They changed the rules again in Jan.
I have to play ball and while the paperwork sucks, I really don't end up paying anything, the customer does.
I own Teetor&Teetor, Inc., smalljobs, LTD., and Advanced Marine Systems.
Last year WC cost me $30,000.00 plus all of the liabilty ins. I carry 1M on the first 2 businesses and 3M on the marine. I write a lot of big checks. I also charge accordingly.

I hope that JD was just fooling around, insurance is what keeps you from being homeless if you or one of your subs happen to make a serious mistake.

To bryon e, WC is insurance, similar to unemployment, everybody pays into it at a predetermined rate. WC tries to determine a balance of ingress and egress plus administrative costs. Unfortunately there are a number of people out there that 'work the system' and rob the working man of a portion of his due. Along the way you have doctors, unions and lawyers milking the system.
Hire some people from Labor Finders and listen to their stories, you'll find out where YOUR money goes.

On the question of subs; I am one and hire them. I have always carried my own ins. and wouldn't hire any one who didn't. To me it shows a total lack of responsibility, somebody skirting it. Not the type of people that I want to be associated with. If they were good they can afford ins., if they are that greedy, I have no use for either as I would always be watching my back.

theman

In New York there is no such thing as subs, Either you have WC or you work alone on the job, no subs,no friends, no volunteers, no unpaid workers

JD Molding

I was trying to point out the important fact of making a good impression and having a professional appearance. It becomes apparent to the client that based on the way we present ourselves they assume we are a licensed and insured business and never ask. I am not sure that telling them that we have a 1 million dollar insurance policy (even though we do) will help us land the job. This comparison was made against the guy who arrives late, has a disheveled appearance and a poor presentation. One may question his credibility and the legitimacy of his business. I agree that working without having some type of liability protection is like playing with fire.

Grumpy

I always tell the customer "We have liability insurance to the tune of 2 million dollars AND we have workmans compensation insurance as well. Do you know what will happen if worker gets injured and the contractor doesn't have workmans comp?"

That paragraph is always a part of my sales presentation. I usually follow up by handing them a cert. of inurane and then tell them "Make sure, no matter who you hire, they have liability and workmans comp."

tncontractor

I'm trying to find General Liability Insurance. A major insurer pulled out of Tennessee recently (they say it was because of mold claims), and the remaining insurance companies have doubled and tripled their rates for existing companies, and walking away from new companies. At our recent Home Builders Assocation meeting, this was the biggest topic of discussion. I'm not really sure what do do next, any suggestions?

Grumpy

I was thinking the other week about mold in new construction. Do you think it has anything to do with the fact that the framing is exposed to rain for weeks then the interior walls are slapped up before the framing has a chance to dry?

Think about it for a moment. I know mold is caused in part due to poor ventilation or built up moisture but that's what brings me to this thought. The wood builds up moisture from the rain. The exterior wall goes up. The roof a few days later. The siding a few days after that. Once the siding is up the dry wall is going on. Is 4-7 days really enough time for wet pine to dry out?

Another thing I want to know about mold is why all of a sudden in the past decade? Mold wasn't an issue until the early 90's. Think about it you don't even find mold in homes built before the 70's. I've personally never seen mold in any roofs built before the 70's but I've seen plenty of mold in 5 year old houses. What are we doing different to cause this?

Unregistered

I own a roofing businesss in omaha, nebraska and am told when my insurance runs out(gen liab, work,comp) that it wont be re-newed in any case. they say no insurance company is touching residential roofers anymore. we do anywhere from 500-650 roofs a year and have for the last 25 years. We're not sure what to do next either? any suggestions?

Grumpy

State insurance pool. They will insure anyone period.

I wouldn't say no companies are insuring roofers there are still a few. Call multiple brokers.