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Liabilitys

Discussion in 'Business Fundamentals' started by FredG, Oct 5, 2015.

  1. FredG

    FredG 2000 Club Member
    Messages: 2,237

    I have a 3 mill. general liability policy for my excavating and paving. When I decided to do some small commercial snow jobs I had to add completed snow plow operations to my policy and they won't let me do supermarkets where there is a lot of traffic.

    I noticed some of the landscape guys do not have this completed snow operations added and are still getting work without workman's comp to. How do these guys get away with this.
     
  2. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,170

    Maybe the work they're getting doesn't ask for proof of it.
     
  3. FredG

    FredG 2000 Club Member
    Messages: 2,237

    I was informed by my Commercial insurance agent without it I would not be covered for a incident without adding this to my policy. What would a guy do without it. Pay cash for any damage?
     
  4. jhall22guitar

    jhall22guitar PlowSite.com Addict
    Messages: 1,044

    How do you know the other company doesn't have the proper insurance's?
     
  5. FredG

    FredG 2000 Club Member
    Messages: 2,237

    Because last year I was high on a job compared to the other guy and the Manager wanted to know why, I asked her if he had snow operations added to his policy. She showed me his binder he had 1 mill. and no snow operations added. Not to mention no workman's comp.

    I explained to her she would be responsible for any injuries and would have to run it on her WC in NY anyways. She did not understand about she would not be covered for damages without this addition to policy. She thinks the insurance on his truck will cover any damages. Maybe it will mine won't.
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Partly right, If your plowing and hit something the truck insurance will cover it. Liability is more for slip and falls.
     
  7. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,170

    If he is/was a 1 man show he could operate as an independent operator under WC and simply not pay or qualify for benefits under any anybodys WC.
    Release forms are available to Independent Operators and the companies they work for.
     
  8. FredG

    FredG 2000 Club Member
    Messages: 2,237

    liabiities

    I see what your saying and understand. He was not a one man show. He had a guy cleaning sidewalks. They are in the city right of way. I know I have coffee there every morning.
     
  9. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,578

    Maybe his sidewalk guy is a sub contractor, or a part business owner?
     
  10. FredG

    FredG 2000 Club Member
    Messages: 2,237

    This is not the case. He picks him up when he needs him at my cousins bar where he rents a room upstairs. He don't work he's disabled for some reason and receives very little money monthly.
     
  11. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,170

    I found the best advice to be worry about what you are doing, not what the other guy "might" be doing.
     
  12. JMHConstruction

    JMHConstruction PlowSite.com Addict
    Messages: 1,080

    X2! There will always be that "other guy" who for whatever reason doesn't have proper insurance. Just sell your client on how YOU are properly covered and if something were to happen with the other he could come after them.
     
  13. FredG

    FredG 2000 Club Member
    Messages: 2,237

    I agree! But if money is going out and it don't need to I would like to be aware of it.

    I asked a simple ?. I was hoping I could get a simple answer. So far all I got is how do I know this and how do I know that. This is a small city. If your plowing snow I know who you are and they know who I am. No negativity intended.:)
     
  14. FredG

    FredG 2000 Club Member
    Messages: 2,237

    Thanks, I did that and explained it in a upper post. It did not work. I will just worry about myself. Thanks to all you Guys.
     
  15. JMHConstruction

    JMHConstruction PlowSite.com Addict
    Messages: 1,080

    Sorry Fred, I read your post and since I'm NOT the guy without insurance maybe I should have not answered. I assumed it was more of a post complaining about those guys, instead of asking a question, I apologize. You know what they say about assuming. Try asking your insurance agent if you need everything you have, and maybe get another quote from a new ins. company and ask that agent for a second opinion. I know I bid (not snow removal) against idiots people find on craigslist and they don't understand why I'm so much more. Sometimes I can sell myself out of it, other times I can't. Good luck
     
  16. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 711

    It all depends on how you structure your company and what your state allows.

    Are you hiring employees or sub-contractors?

    They are sub-contractors if they are using their own equipment, paying their own costs etc... you can pay them hourly, but it is better to pay them by the job or site whether they plow or clear sidewalks.
    You give them a list of sites to plow and they decide the best way depending on the storm, they are not under your direction.

    Employees are paid hourly, you supply everything to them needed for the job.
    They are under your direction, you tell them where to go what to plow, etc...

    OHSA Logs are not needed if you have 10 or less employees or if you subcontract out -(so you can have 25 guys plowing in their own trucks and not have to maintain OHSA logs.)

    Workmans comp.
    As a single operator under a LLC you do not need Workmans comp.
    If you have employees even 1 you do need it.

    General liability insurance, covers slips and falls.

    Your truck insurance covers any type of accident -(you hit a car with your plow, take out a curb, etc...)
    But make sure you are covered while plowing as some truck insurance does not cover it.

    All of the above is Good for CT.

    Other states you need to look it up to make sure.

    I believe the OSHA is every state as it is under federal guidelines.
     
  17. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,613

    There are lots of ways to fly under the radar. If the other guy is somewhat a smaller company he can be paying the employee cash in which this makes sense seeing the employee as you said is on some sort of disability. If he does not collect a pay check and he gets hurt there is no way to track him as an employee so he cannot collect any workers comp. If who ever is paying his current disability catches him working he could be in trouble.
     
  18. FredG

    FredG 2000 Club Member
    Messages: 2,237

    No need to be sorry, I'm cool. Thanks for your response.
     
  19. FredG

    FredG 2000 Club Member
    Messages: 2,237

    Disability allows him to make a small amount of money. He was working for me for a little while. I would not pay him cash and he had to quit. In NY working where there is any city, county, state or federal funds involved you have to have certified pay roll to make sure your employee's are getting prevailing wage. You won't be on the job long before a inspector comes around and gets the name of your help.This rate is based on union wages. If I was doing private work I probably would of gave him cash for a little while. Around here this is becoming a dangerous game.
     
  20. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,613

    It sounds like that is whats happening if he quit working for you because you wouldnt pay him cash.

    Let me know how you make out on the bid for Zotos and the City sidewalks.