View Full Version : Insurance Question
09-19-2010, 10:35 PM
Things seem to be going in an upward direction for my new venture. However, as far as insurance goes. I have general liability, but a customer that a did a bid on last week said that they require I also carry workers comp insurance. I've heard that is pricey. I hate to get insurance for just one of my clients, seems better to just withdrawal the bid, and just move on. But then again, do a lot of commercial clients require workers comp? I'm in NC if that makes a difference.
09-19-2010, 10:46 PM
As far as I know you don't need workers compensation if you have no employees but you must carry it if you have one or more (not including yourself). However, a business can require it for any reason they want. Maybe they use it to weed out the hacks. :dunno:
09-19-2010, 11:18 PM
As far as I know you don't need workers compensation if you have no employees but you must carry it if you have one or more (not including yourself).
I know the rule in Carolina here, is if your structured as a sole Proprietorship, you must carry it once you have 3 employees.
My concern is, should I get this insurance just to get this one client. I guess i need to get a quote from my agent first, but it seems like I may be doing this clients property just to pay for the insurance, which doesn't make sense.
09-20-2010, 07:25 AM
... My concern is, should I get this insurance just to get this one client. I guess i need to get a quote from my agent first, but it seems like I may be doing this clients property just to pay for the insurance, which doesn't make sense.
You should put the cost of the insurance in the bid. Chances are you won't get another job that requires WC for quite some time so they will have to pay for the work and the insurance. Since they require it everyone else that is bidding for the job will have to put it in the cost as well. Breaking even isn't really a good choice.
09-20-2010, 10:34 AM
some businesses require you to cary workers comp insurance just because they don't want to be liable for anything you or your people do. At the same time business customers will often use the requirement to weed out un-professional (half assed) lawn crews or illegals.
look at your customers, look at who you want to be your customers, look at your employees, costs, and rewards too
My example, to get the starbux i have, i had to have workers comp and liability insurance. liability ins was $750 per $20K in profit each year (and that's with herbisides included)(you might not need to pay so much if you don't spray chemicals)and workers comp insurance is a real scam! it was like $500 per $5000 of business (not profit) per employee.
Here is the key: how much will you report to them? i reported 1 employee, and only 5k$ and now have a document for my workers comp ins. for a year.
I know i'll make more than 500 off starbux this season alone so it was worth it to me! plus now i have that extra insurance so i can bid on other places that require it. professional places that pay big money for big jobs, and they don't mess around with all the haggleing. (the kinds of customers you want!)
oh, and lets not forget now, if you or the person you have working for you that day get hurt on the job YOU'RE INSURED for that!
as for the liability ins, it sets you appart from the guy going door to door. it says if i fling a rock through a window on accident its paid for NOW! not with little johny down the street who will have to mow your lawn for free for the rest of the summer to pay for it???
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