workman's comp insurance

[sparky 134]

i am curious what electrical contractors are paying for workmans's comp insurance. i had one agent quote me $5000.00 for insurance on one employee for one year. this seems a little outrageous or maybe i am off base....

[jimwalker]

would likely be based on dollars he makes as that is what they are insuring .

[dacreman]

I was $8,000 a year with no employees. I went corporate to avoid the problem, and now my "transfer application" with the state requires $10k in the bank. I run a one man operation and this will put me out of business unless I can find a different way.

[luke warmwater]

Worker's Comp. is based on your payroll dollars (as jim was pointing out). And it is usually an estimate, or based on prior highest quarter.

You pay a percentage of that. I believe ours is 4%. I'll try to look it up.

You should get an audit every year, and if you over pay, you should get a refund. If you under pay, you should get a bill.

If you are self-imployed, you shouldn't be required to carry worker's comp. on yourself, but I guess it depends on what state that you are in.

$5000.00 sounds high to me for one employee.

[luke warmwater]

4.77%.

Are you working in more than one state?
That coverage could be more.
Also, do you use bucket trucks, sizzor lifts, or do high voltage(utility-type) work?

[michaelstanley]

12% Where in Fl. can you find cheaper??

[ July 20, 2004, 08:59 PM: Message edited by: michaelstanley ]

[sparky 134]

Originally posted by luke warmwater:
4.77%.

Are you working in more than one state?
That coverage could be more.
Also, do you use bucket trucks, sizzor lifts, or do high voltage(utility-type) work? No, i'm not working in more than one state. My agent didn't ask about bucket trucks, lifts, etc. He said the rate averages $10.34 per $100.00 of payroll. If you think this is bad, he said for roofers it's $40.00 per $100.00 of payroll !!

[jimwalker]

in Fl me and my 2 sons as a corp and all officers of company were exempt.But that is risky if anyone gets hurt

[stanley]

I pay 4.88% for W/C. W/C is based on your track record of job safety. The a number of small claims will result in a higher rate than one large claim.

Also, when you start out in business you have no track record and pay the Max. As you develop a track record discounts are applied to the Max. rate if you prove to be a safe risk.

W/C cost have been increasing after five years of record lows.

One last thing. W/C rates vary per State based on payout rates paid to disabled workers. The more generous the State the more you pay.

. . . Stan