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How Does The Contractor/owner Insure Himself???

 
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Old 09-07-2011, 08:10 PM   #1
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How Does The Contractor/owner Insure Himself???


I'm in California, and I own a tree service. If you live here, you'd know that it's $40 per $100 in payroll, and there is only one group that will insure tree services in the entire state.

So, I get the employees' insurance, but the company owner is not included on the policy. Actually they offered me an officer policy for $16,000 per year. I need an alternative.
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Old 09-07-2011, 08:22 PM   #2
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Re: How Does The Contractor/owner Insure Himself???


Quote:
Originally Posted by moneyball
I'm in California, and I own a tree service. If you live here, you'd know that it's $40 per $100 in payroll, and there is only one group that will insure tree services in the entire state.

So, I get the employees' insurance, but the company owner is not included on the policy. Actually they offered me an officer policy for $16,000 per year. I need an alternative.
You don't insure yourself. Get your own insurance through whoever. I pay $230 every 3 months.

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Old 09-07-2011, 08:40 PM   #3
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Re: How Does The Contractor/owner Insure Himself???


I don't think my situation will have such an easy solution though. I'm sure that if the insurer knows it's a tree service, they will decline me in CA. I don't know though. I'll check around.
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Old 09-07-2011, 11:37 PM   #4
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Re: How Does The Contractor/owner Insure Himself???


Quote:
Originally Posted by BamBamm5144

You don't insure yourself. Get your own insurance through whoever. I pay $230 every 3 months.
230 every three months? Explain please
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Old 09-08-2011, 12:31 AM   #5
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Re: How Does The Contractor/owner Insure Himself???


Find out what the average tree service claim is. Divide that buy 16000. That's how many years you have left in business.

Maybe the insurance companies are trying to tell you to not climb trees and let your labor do it.
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Old 09-08-2011, 12:32 AM   #6
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Re: How Does The Contractor/owner Insure Himself???


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Originally Posted by BamBamm5144 View Post
You don't insure yourself. Get your own insurance through whoever. I pay $230 every 3 months.
Aflac?
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Old 09-08-2011, 06:30 AM   #7
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Re: How Does The Contractor/owner Insure Himself???


incorporate your business and list yourself as president...or head chief boss in charge..whatever u like.....then you ARE an employee of the compnahy and covered under your policy..if u are in the field,then you are a tree guy and charged at going labor rate...

if you do sales, admin..you will be charged a lower rate for you due lack of risk...
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Old 09-08-2011, 09:21 AM   #8
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Re: How Does The Contractor/owner Insure Himself???


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Originally Posted by jamestrd View Post
incorporate your business and list yourself as president...or head chief boss in charge..whatever u like.....then you ARE an employee of the compnahy and covered under your policy..if u are in the field,then you are a tree guy and charged at going labor rate...

if you do sales, admin..you will be charged a lower rate for you due lack of risk...
Not sure if that is totally correct.
Isn't it if you make your wife (if you have one) the owner then you can be the employee?
Works that way for unemployment.

Another way around this bs is to not climb the trees, let your employees do it and then insure yourself as an executive supervisor or office manager or some bs like that.
Just don't tell the a-holes that you GC.
Cause then they will put it in your a-hole!

Can't stand companies that rob the innocents.
Really pisses me off.
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Old 09-08-2011, 12:07 PM   #9
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Re: How Does The Contractor/owner Insure Himself???


The wisest move is to set yourself up properly using honest, accurate information. If you end up setting things up improperly, the insurance company could and would deny a claim - thus opening you up to personal legal liabilities that you didn't expect. If the premium is higher, then your fixed operating expenses will be higher, too, so you will need to charge a bit more to cover those expenses.

How do you charge higher prices? Create more value in your sales presentation and appearance and don't be afraid to ask for the higher price.
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Old 09-08-2011, 12:10 PM   #10
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Re: How Does The Contractor/owner Insure Himself???


Is this the Robert Schneider the insurance guy?
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Old 09-08-2011, 12:57 PM   #11
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Re: How Does The Contractor/owner Insure Himself???


You're talking workers comp right? It's 40% for roofing here too.

Here, you get a policy that doesn't cover anybody for $750 / year - it just means you can't sue the HO if you get hurt. You can cover yourself, or pay another couple of hundred to file an "I'm the owner declining coverage" document which is the option I took.

Does that $16k / year officer policy cover you if you're in a tree, or just for doing office activities? What - are you going to get a paper cut or something? Carpal tunnel? Drop a printer on your foot?

Key point made by Bam - don't get hurt! I think the policy he's talking about is personal health insurance so if he gets hurt, he's covered by something.
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Old 09-08-2011, 01:01 PM   #12
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Re: How Does The Contractor/owner Insure Himself???


Bam - is that legal to do? I've got the "you're not covered" WC, so if I get hurt on the job my regular insurance will pay, or do they say "it's a workplace injury so screw you buddy, take it up with WC!"?

I regularly jump up on 16:12 roofs, so I'd really like to know

edit: jump on 16:12 roofs armed with cougar paws and cushions ... I'm ok with that, but recently I got on a roof that had been high nailed, and wind flogged - shingles were starting to slip out and it was worrisome!
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Old 09-08-2011, 01:05 PM   #13
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Re: How Does The Contractor/owner Insure Himself???


you can always sue,you just will have to pay back w.c if you sue successfully
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Old 09-08-2011, 02:00 PM   #14
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Re: How Does The Contractor/owner Insure Himself???


Quote:
Originally Posted by smalpierre
Bam - is that legal to do? I've got the "you're not covered" WC, so if I get hurt on the job my regular insurance will pay, or do they say "it's a workplace injury so screw you buddy, take it up with WC!"?

I regularly jump up on 16:12 roofs, so I'd really like to know

edit: jump on 16:12 roofs armed with cougar paws and cushions ... I'm ok with that, but recently I got on a roof that had been high nailed, and wind flogged - shingles were starting to slip out and it was worrisome!
I don't get injured on the job! Only hurt when doing other activities.
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Old 09-08-2011, 02:29 PM   #15
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Re: How Does The Contractor/owner Insure Himself???


Thomas J...

it is true..

i was recently charged more on my salary as I downsized and in comparison to sales /wages, they figured i must be back in field and raised my rate accordingly to field wage from sales..

if you are a corporation..you are separate from biz as in liability issues..

you are an employee of the biz...

Not sure about how LLC works..need to speak to an agent..

but bottomline, i get hurt...i get covered..simple..

if you are paying as admin/sales etc..and get hurt in the field, you may have an issue...
..
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Old 09-08-2011, 03:12 PM   #16
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Re: How Does The Contractor/owner Insure Himself???


I was told by my broker that puts the general liability policy on us that I should look up Aflac. I'll look them up and the lawyers around here to find out what is the safest way to do things all things considered. Good thread. Really.
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Old 09-08-2011, 04:46 PM   #17
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Re: How Does The Contractor/owner Insure Himself???


Quote:
Originally Posted by jamestrd View Post
Thomas J...

it is true..

i was recently charged more on my salary as I downsized and in comparison to sales /wages, they figured i must be back in field and raised my rate accordingly to field wage from sales..

if you are a corporation..you are separate from biz as in liability issues..

you are an employee of the biz...

Not sure about how LLC works..need to speak to an agent..

but bottomline, i get hurt...i get covered..simple..

if you are paying as admin/sales etc..and get hurt in the field, you may have an issue...
..
This is true, so you need to make sure that the injuries do not occur. if you want to keep your insurance premiums down there are ways to accomplish it, but you have to make sacrifices.
You have to put the ego aside and step back from getting in the middle of it all.
Either that or slow it down considerably and take the extra time to think every move out before doing the work.
Accidents do happen, but I have learned that slowing it down lowers the chances dramatically.
And what's the rush for anyway?
The quality at the end is what matters most.
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Old 09-08-2011, 04:47 PM   #18
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Re: How Does The Contractor/owner Insure Himself???


Quote:
Originally Posted by moneyball View Post
I was told by my broker that puts the general liability policy on us that I should look up Aflac. I'll look them up and the lawyers around here to find out what is the safest way to do things all things considered. Good thread. Really.
Safest way to do things meaning,
Insurance or work????
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Old 01-02-2012, 11:02 PM   #19
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Re: How Does The Contractor/owner Insure Himself???


moneyball, which type of insurance are you talking about? If you're concerned about being covered for if you get hurt at work, you would need disability insurance. Yes, aflac will work for that. I think you are right about the workers comp though. I'm pretty sure State Fund is the only carrier that will write tree trimmers in CA. There are however several carriers that offer general liability.
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Old 01-03-2012, 01:39 AM   #20
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Re: How Does The Contractor/owner Insure Himself???


A good link relating to CA

http://www.edd.ca.gov/Disability/Emp...mpensation.htm

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