Workman's comp and tree company...

[Hogdaddy]

How exactly does workman's Comp insurance work. I was going to have a tree removed, but the company didn't have workman's comp., only liability insurance so I decided to look elsewhere. If an accident occurred on my property and someone was injured am I the responsible party or does it fall on the owner of the tree company. Also, would my liability insurance cover it or would they deny based on the grounds that I didn't hire a company with WC insurance. I carry a policy for my business for when I hire labor and contractors, but it won't cover me personally. How much does WC add to the cost of a tree job. The first guy wanted $3,000 to remove the 120 foot Hickory in my back yard, but he didn't have WC. Any idea how much more expensive it would be from a company with WC based on the same $3,000 price...thanks in advance for your input.

 

[dhal22]

I own a 10 employee plumbing company and my w/c is over $30k a year. Only the guys out in the field are expensive. 5-12% of the labor cost should be the w/c (however much the labor of $3000 is). Let's say $1500 in labor x 10% w/c is $150.

Good for you on insisting on full insurances.

 

[dhal22]

I need some of that hickory for my smoker........

 

[Hogdaddy]

Thanks guys I appreciate the input. As I said I carry a WC policy for my small real estate company as I hire contractors for lawn maintenance etc., and they generally do not have WC so I protect myself. The premiums on my policy are about $2,500 per year and I generally get a returned premium every year because I have such low need for outside contractors . One year, however I did some roofing work and the total expenditure was about $2,500. My WC insurer assessed be dollar for dollar, in other words they billed me $2,500 for the WC coverage on that job. They said roofing was one of the highest risk categories, even though it was a flat, one story commercial roof.

I was stunned at the cost. I use Travellers and I know they are very high, so am I just vastly overpaying based on the figures above. With the tree company example, is the premium going to be 1 for 1 as it's a high risk profession. Would it be $3,000 for the WC premium on a $3,000 tree job? Is that possible...and do I need a company different than Travellers. My renewal is coming up so I might need to make a change.

 

[whiskerz]

As a business there is almost no incentive to stay with one company. We shop our WC and vehicle coverage annually. It tends to change as a result. Insurance companies tend to not reward long term commercial customers.

 

[Gunanddoglover]

@The Old Jaybird

 

[THREEJAYS]

Homeowners insurance used to exclude contractual work on premises.yes if neighbor got hurt falling but not hired company employees. Tree business WC would fall in high risk so premiums would be very high. You did right by being safe.

 

[jeep78]

A tree co without WC is like a tree outfit showing up and needing to use your chainsaw. You did right in looking elsewhere

 

[BamaFan]

A tree co without WC is like a tree outfit showing up and needing to use your chainsaw. You did right in looking elsewhere

This. One of the more dangerous jobs you can have in 2021.

 

[Hogdaddy]

40k but my secretary never mentioned us receiving any refund on unused portion of WC like you get.

They do the annual review and I provide all my check stubs etc., to show them the amount of contractor work and if the applied premium per contractor $$ is less than the total premium, I get a check back..don't know know that's just Travellers.