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Subs now need their own workman's comp. ins.

Discussion in 'Business Fundamentals' started by Brian Young, Nov 2, 2010.

  1. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    Where will it stop! I was just informed today that any and all of our subs need their own workman's comp. insurance, or we can buy it for them....WTF! I hate govt, I hate insurance companies. The two biggest organized crime outfits IMO!
  2. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Must be a state thing? Couldn't work here with out comp for your workmen.
  3. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    We have it for my employee's but even for any subs?
  4. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    It is NOT a state thing. MOST insurance companies will accept the state waiver for owners of inc's and sole props as the certificate. I have a couple of places that I do work for that required that I have it no matter what. I am still excluded from my policy, so I can't collect on it, but still have to pay the $700 a year for a tiny policy. IT SUCKS!!!
  5. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    Well I guess there is a waiver they can sign declining it, is this what your talking about?
  6. mrsnowman

    mrsnowman Senior Member
    Messages: 126

    Looking at this another way, I would think this is a good thing for any reputable company. Maybe this will stop the 50000 trucks out there that pick up an account or two for half price just to make some extra money. If nothing else, it may make them work for the right wages and slow down the lowballing.
    Who am I kidding, they will just run without wc. Who is going to make them get it? Really? Our state can't even monitor pesticide licensing, how are they going to maintain or monitor wc? Your right, we are screwed!!!!!
  7. Mark13

    Mark13 PlowSite Fanatic
    Messages: 5,796

    I was told this also by the company I sub for. It doesn't make much sense to me but I didn't make the rules, I just want to play along and push some snow.
  8. ERWbuilders

    ERWbuilders Senior Member
    Messages: 843

    If your a sub, with no employees, How can you actually get hurt plowing snow? i mean unless you pull a muscle steering the wheel or playin with ur joystick or doin 50mph in a parkinglot. Insurance is a scam thats for sure
  9. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    Actually, most companies well check to make sure your coverage is current before they issue a check, and it is the employers responsiblity to make sure its maintained. And if someone who works for u or under u let's there policy lapse, u can hold their check and/or pay it for them. (At least that is the way it happens in Canada)
  10. qualitycut

    qualitycut PlowSite Fanatic
    Messages: 24,231

    Its an insurance thing, the guy i plowed for had to pay a little extra in his insurance I believe because I dont have it on myself.
  11. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    1 or 2 wouldn't be that bad but 6 subs plus mine is a bit much. Not to mention sidewalk guys.
  12. Silverstreak

    Silverstreak Senior Member
    Messages: 168

    if youre the president or officer of the company then you do not need to get workmans comp, unless you have other employees which arent part of the company and collect paychecks the waiver excludes the officers and is what those guys are talking about

    i guess you could get your employees to all be part of the company (pres vp treasurer, secretary, etc) and get around this....then youd have to divie out shares and everyone would have a piece of your pie though payup
    Last edited: Nov 3, 2010
  13. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    i don't think this would work, the last time i was asked submit workers comp information, i was asked if i was doing any of the work, if i had answered yes i would be required to have myself included in my workers comp policy
  14. PLM-1

    PLM-1 Senior Member
    Messages: 424

    My insurance company requires my subs to carry it. Also, it is cheaper for me to add them as an employee than it is to carry a policy on a sub contractor. They then lease their truck to my company and therefore they can become a w-2 employee vs 10-99.
  15. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,993

    If the Subs don't have a workmans compensation policy then they will not fit the definition of sub-contractor as they are not fully insured.
  16. shooterm

    shooterm Senior Member
    from Midwest
    Messages: 272

    I see this as a benefit. Hopefully this means legit business will once again plow parking lots and people plugging plowers in there blackberry go away. Seriously do we really think six acre sites need to be done with five plow trucks and five on call?
  17. mrsnowman

    mrsnowman Senior Member
    Messages: 126

    As I said, I agree 100 percent
  18. dmontgomery

    dmontgomery PlowSite.com Addict
    Messages: 1,238

    I have never needed it on myself as a sub........I am getting it this year to cover my parttime driver.....but still not me..
  19. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    Yesterday I talked to another guy who said he actually called our State Representative and he said they dont need it. IDK, I may call this guy myself.
  20. lbfmd

    lbfmd Member
    Messages: 48

    We got smakced with it last year, it depends on your insurance company. Five years ago there were only a few, this year when we quoted our insurance out they all stated that our subs had to have minimum state requirements or we would be charged for there pay as if it were wages. That was a nice bill. its become more common place now and it doesn't matter what the state says its what the insurance company states, thats at least what our new agent told us.