This Sound Right? Payroll And Liabilty Insurance..

ruskent

I am finally adding employees this year and sorta of changing the direction of my company.

I was paying 1200 for GL previous for landscape construction. For the same coverage for installing pools i am at 2400. BUTTT as soon as i add employees i am looking at 7% of payroll just for liablity insurance.

Is this correct that i have to pay a acctually percentage of payroll for my liablity?

Now we are going to keep track of how many hours are spent landscaping and how much time is spent of pools. I think for landscaping the GL would be 1% of payroll, or something in that range.

Is this is correct way that GL is figured out, or is my insurance guy trying to take advantage of me?

Thanks

North Country

That would be correct GL is based on a percentage of payroll, (they have a hypothetical allowance for owner as well), Workmen's Comp is figured the same way. You will want to keep track of hours based on task as this will help you when they perform a payroll audit at year end. I use a space on the employee timesheet so the employees do this job of separating the hours, works well if they are filled out.

Forry

I pay a set rate for liability and bond (@$1500/yr) and comp is @10-20% of payroll depending on what work we're doing... payroll sheets have a box for the day's work to be filled in and that's what I compile and send to SAIF, our comp co. The "work performed" box also allows me to track how things are going for bids, or get accurate info for clients on t+m work.

ruskent

Ok thanks guys. I just need to estimate what percentage of payroll will be pool vs landscaping. The more i think about it, majority of my work will still be landscaping with most pools subbed out. SO i shouldn't get hit that hard.

Pearce Services

If you use Quickbooks, you allocate employee wages into types of labor, as you enter your numbers. Then at the end of the year, you just print out a report, and have a breakdown for each insurance classification. This is a great way to minimize the hassle of an insurance audit, which you will also be dealing with.