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Workmens comp . scam insurance...

Discussion in 'Business Fundamentals' started by scottL, Nov 3, 2013.

  1. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    So, I get an employer having workmens comp to cover their butt if an employee has an 'accident'. However, the owner is not covered. Weird, huh.

    Then these companies who demand the sub have their own workmens comp. This is just for the company to be covered so they don't have to pay to their insurance.

    The kicker is the sub might have a state 25% rate and then have no sub's of their own, no employees and exclude themselves to possibly lower the rate .... then you have a policy that covers no one.

    Isn't this just paying to play - sounds like government politics. To throw 25% of your earnings to a policy that can not do anything :angry:
  2. nepatsfan

    nepatsfan Senior Member
    Messages: 727

    You can get workmens comp that covers the owner too, it just costs more money
  3. JustJeff

    JustJeff 2000 Club Member
    Messages: 2,480

    Yup, the company I sub for requires this as well. It costs me 1,010 for a policy that does nothing but require me to plow for an additional eight hours or so just to cover it.
  4. cjwoz

    cjwoz Senior Member
    from CHICAGO
    Messages: 134

    It's really for when your contractor get audited( every year). They can produce a certificate of insurance. This is why I will only use subs(insured) and not employees cause I can show these certificates. Usually subs, with this coverage, are paid a little more.
  5. SullivanSeptic

    SullivanSeptic PlowSite Veteran
    Messages: 3,422

    I do this as well. My subs need their own wc insurance. If not, when i get audited at the end of the year by my insurance company, i have to pay for them not having it. The kicker is that most guys that just have their own truck and want to sub for a company like mine, they cant afford the proper insurance
  6. leigh

    leigh 2000 Club Member
    from CT
    Messages: 2,342

    Crazy ain't it ! Pay to play. I've been able to avoid this myself so far. Cost of doing business unfortunately. Cash cow, these 1000$ workers comp policy that don't cover anyone.
  7. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    For those who require it .... Typically a COMPANY can get a far better rate than an individual. Individual minimum in IL for this category is about 25% earnings. Companies can get as low as 8%.

    It would be one thing to have a little cut off the top and have the company hold back but to carry your own is nuts.