Buying Workman's Comp

dumpsrus

We have a small dump truck and excavating business in Alabama. We have recently been awarded a large contract in which we are having to hire other trucks to help. We are being required to purchase workman's comp on this job. Do any of you have any advice on how to save money on purchasing workman's comp? We really only need it for this one job. Some of the hired trucks we are using do not have their own workman's comp, so we will have to cover them.
Any advice will be appreciated!

PipeGuy

RUN AWAY!!!
Why in the world would you agree to afford W/C coverage to someone who you have little or no control over (a subcontractor)? That sounds like a recipe for disaster if you ask me. Some guy that's subbing his truck to you hurts his back getting out of the truck one day to clear the tailgate and you're on the hook for his disabilty!?
I dont think so......homey don't play dat.

__________________
Fortunately I keep my feathers numbered for...for just such an emergency. -Foghorn Leghorn

PipeGuy

You can also try local trade associations for support.
Alabama Road Builders Association

Billy Norrell
Executive Director
630 Adams Avenue, Montgomery
AL 36104-4336
Tel: (334) 832-4331
Fax: (334) 265-4931
E-mail: norrell@alrba.org
Website: www.alrba.org

P.O. Box 240248
Montgomery, AL 36124-0248
Phone: (334) 409-9180
Fax: (334) 273-8483
E-mail: npregno@aol.com
Executive Director
Nanette Pregno

both organizations likely have members who are insurance agents.

__________________
Fortunately I keep my feathers numbered for...for just such an emergency. -Foghorn Leghorn

AtlanticWBConst

Workman's comp only covers YOUR EMPLOYEES.
At the end of the year, when you are audited for the workman's comp -you will only have to pay for those who were employees NOT Subcontractors.

All you have to provide for the W.C. audit for this is proof of your sub's liability insurance. It will show that they are not employees, but independant subcontractors.
We saved alot of money this past year by MAKING SURE that all of our subs had their liability insurance showing what company name they were functioning under.

(It costs much less for the each sub. to have their Liability Insurance than for an owner to have to pay Workman's Comp. premiums)

__________________
- Build Well -

ApgarNJ

Atlantic.
not in the state I am in. when I get audited at the end of the year, any sub that worked for me during the year, that did not have workers comp in his cert of insurance, I have to pay for. I make sure all my subs have workman's comp. It's not just for employees. If you are a builder or GC, anyone who uses subs,and you are running the job, you have to make sure that they all have workers comp.

i wouldn't take that job if I were you, if you have to cover other guys who are on the job. like mentioned above, they get hurt or something on the job, they'll be claiming off your policy. i'd tell them they have to get work comp or they aren't allowed to work for you on the job.
it may sound harsh, but you gotta cover yourself!
they may seem like ok guys, but wait until they can't work for 6 months due to an injury, and you'll see how ok, they really are.

whiteslandscape

I have a degree in business management business law and contracts ok First send these drivers to the workers comp commition ok have them get a workers compinsation exempt form.fill it out there in there office ok have them fill it out they will give them all a workers compansation exempt form every one must have there copy each ok as long as you provide the company a workers compasation exempt form they will except it your contract .go a head draw up a contract with each person as a sub contract labor for each person on a exact amount will pay them per week in this contract say they will be responcable for paying there own taxes federal and state as a self employement contract ok it works as far as insurance add the drivers to your policy as a driver problem solved ok

AtlanticWBConst

ApgarNJ -"Atlantic.
not in the state I am in. when I get audited at the end of the year, any sub that worked for me during the year, that did not have workers comp in his cert of insurance, I have to pay for. I make sure all my subs have workman's comp. It's not just for employees. If you are a builder or GC, anyone who uses subs,and you are running the job, you have to make sure that they all have workers comp."


I Stand Corrected.

When we first got Workman's comp, we factored the added costs into our estimate.

We were offered a great contract of several jobs at a large development. It was a situation where, we were the only company qualified to do the job. (Water damaged high end rental units). They needed it DONE asap. We named our price (Which included the costs to get workman's comp.) and they were fine with our price.... "When can you start!!!?"
After the 1st year, we did another job for the same company, but at another development in another state. We named our price (Which happened to include the new year's W.C. premium amount)..and they said: "Great!! When can you start!!!?"

So we were fortunate, we still do work for them....infact ALOT of work, so it paid for itself....

'Dumprus'....if it is worth it...........do your research....find out a way to make things work. Whiteslandsape has a good point too.

We picked up that one original contract and it opened the door for ALOT of bigger and better contracts.

__________________
- Build Well -

dumpsrus

Thank you all for your suggestions. The exempt thing won't work in my state, you can only get exempt status if you are working on residential, and this job is commercial.
Bought experience is good experience, will factor cost in on next job. Will just have to pay the insurance racket, and drop it after the job.

Thanks again.