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Workers Compensation And General Liability Cost

 
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Old 05-03-2015, 12:12 PM   #1
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Workers Compensation And General Liability Cost


Hello all. I just found Contractor Talk and very glad I did. Thank you!

I have a question about Workers Comp and General Liability insurance.

I'm a very small general contractor and I mostly do residential remodeling. I have one employee and his payroll is 15k a year.

I was just quoted a total of $4,267 a year. $1,532 for General Liability and $2,735 for Workers Compensation. That comes out to $356 a month.

Is this the going rate? What are you guys paying for insurance? $356 a month seems very high to me and I'm not sure I can afford it.

Any advice or comments would greatly be appreciated.

Thank you
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Old 05-03-2015, 01:14 PM   #2
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Re: Workers Compensation And General Liability Cost


Mine is over $1500 a month so yours isn't bad at all.

Also, you don't pay for your insurance, your customers to do. You can afford it.

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Old 05-03-2015, 01:30 PM   #3
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Re: Workers Compensation And General Liability Cost


My general liability is 2m runs around $3200 a year and my WC varies by what type of work we are doing between 14-23 %.
As Bam said .It's all figured in the overhead and the customer pays it job by job.If you think you can't afford it you need to look at how you are bidding your jobs.
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Old 05-03-2015, 01:33 PM   #4
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Re: Workers Compensation And General Liability Cost


You can't afford not to have it and be a legit business. Like bam said, get it in your price. And get ready for it to go up if you do more business or the payroll goes up. It's all relative to how much business you do, we pay over 10k per month for 10 months out of the year.
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Old 05-03-2015, 05:32 PM   #5
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Re: Workers Compensation And General Liability Cost


When I was a growing contractor and knew I would owe addl GL premium I would line item a cost of 3% for the job. Actual cost is a bit lower. Is that what your's works out to ?

WC - looks like its about 18% - how did you classify your employee and what is your major type of work.

You are not covered with WC - right ?
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Old 05-03-2015, 05:36 PM   #6
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Re: Workers Compensation And General Liability Cost


Not sure about other states but in Texas there are insurance companies who specialize in working with contractors. I currently use a company based in Austin, they are very contractor knowledgeable.
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Old 05-03-2015, 08:13 PM   #7
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Re: Workers Compensation And General Liability Cost


Paul:

I received your PM but had trouble replying. Email me [email protected] and I will give you the name of my insurance company.

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Old 05-03-2015, 09:15 PM   #8
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Re: Workers Compensation And General Liability Cost


Allan, are you in Austin?
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Old 05-03-2015, 09:24 PM   #9
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Re: Workers Compensation And General Liability Cost


Tx:

I am located in Houston.
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Old 05-03-2015, 09:31 PM   #10
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Re: Workers Compensation And General Liability Cost


Quote:
Originally Posted by Jon Paul View Post
Hello all. I just found Contractor Talk and very glad I did. Thank you!



I have a question about Workers Comp and General Liability insurance.



I'm a very small general contractor and I mostly do residential remodeling. I have one employee and his payroll is 15k a year.



I was just quoted a total of $4,267 a year. $1,532 for General Liability and $2,735 for Workers Compensation. That comes out to $356 a month.



Is this the going rate? What are you guys paying for insurance? $356 a month seems very high to me and I'm not sure I can afford it.



Any advice or comments would greatly be appreciated.



Thank you

I just got a quote from my insurance. That's about the same price I was quoted. I added the cost to my bid. Also added cost of payroll company and all taxes etc.
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Old 05-04-2015, 06:11 AM   #11
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Re: Workers Compensation And General Liability Cost


Welcome to the world of running a business properly.

You've got 2 choices, go without and compete with the bottom feeders or pony up and your business will start to grow...almost naturally as you get away from the projects that every bottom feeder is after.

If it makes you feel any better, my GL and auto combined in one is $18,000 per year plus workers comp is over $50,000 per year. Needless to say we don't do many jobs under $5,000 anymore...which is where you find the bottom of the barrel in big city's.
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Old 05-05-2015, 12:00 AM   #12
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Re: Workers Compensation And General Liability Cost


I pay $1800 a year for 1 mil GL and 10.5% of my employees pay for painters WC. WC usually runs me around 300 a month.
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Old 05-05-2015, 01:16 AM   #13
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Re: Workers Compensation And General Liability Cost


I pay 1062.00 a year for 1 mil in GL.
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Old 05-05-2015, 05:54 AM   #14
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Re: Workers Compensation And General Liability Cost


500$ here for 1 mil gl, and my wc is 5.55. One of the few breaks I catch here I guess.
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Old 05-05-2015, 06:42 AM   #15
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Re: Workers Compensation And General Liability Cost


$660 gets me 1 million in GL here. Then they tack something on to cover my tools. I could probably find a cheaper policy now that I've had this one for a few years. It was my first and I understand that is more expensive.
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Old 05-05-2015, 08:25 AM   #16
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Re: Workers Compensation And General Liability Cost


I'm in NJ and I pay $1100 for 2 million in liability. I have no employees because I keep things small and use subs with insurance for everything.

As I get older and more reticent to do some of the things I do I think about hiring a kid or a part time laborer but the cost of insurance keeps me from doing it.

That's probably the difference between taking a risk and being hugely successful or playing it safe and staying compact and driving an old truck.

You have to have insurance though, it is not fair to yourself or your customers if you don't.
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Old 05-05-2015, 09:33 AM   #17
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Re: Workers Compensation And General Liability Cost


I'm paying $10k a year for w/c on three guys, gl, 1 truck and forklift/tools. Book rate on comp is about $11.50/100 but I'm down around $8 with discounts. That's on $80k payroll. I'm exempt.
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Old 05-05-2015, 12:55 PM   #18
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Re: Workers Compensation And General Liability Cost


Paying 2K a month, it's tough doing business in VT!
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Old 05-05-2015, 06:01 PM   #19
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Re: Workers Compensation And General Liability Cost


Get a copy of a Means estimating manual,it has WC rates for each trade for each state.
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Old 05-05-2015, 06:11 PM   #20
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Re: Workers Compensation And General Liability Cost


$2,200 here for 2 mil GL, and $9 on every hundred for general carpentry comp. 3 guys and myself is about $14,000 a year depending on the year. I claim the bare minimum of $14,500 for myself as I don't take a check. I think the ins co should send a coffee cup or something.

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