Workers Comp. Ins.

37chief · Mar 10, 2016

I have been doing a mowing job for a lady for quite a few years. She asked me if I had workers comp on myself. No I don't. I have my own medical insurance. I have liability insurance on my business. Since I don't have workers comp on my self,she isn't going to hire me anymore. I never herd of workers comp on your self. Does anyone know what the lady is talking about? Stan

David G · Mar 10, 2016

Workers comp is an additional insurance that employer carry, it is usually exempt for employers with less than 4 employees.

Check the web, should state what that is for your state, print out and show to her.

Greg K · Mar 10, 2016

As an LLC I have to have it for any employee I have and once it is taken out I have to keep it I am told. I wonder if her insurance company insists on you having it so they are not held liable in case you were to get injured.

Greg1959 · Mar 10, 2016

David G- That's what I did. I exempted myself and did not have to purchase WC.

David G · Mar 10, 2016

I have about 20 employees, no exemptions for anyone, even me.

dhermesc · Mar 10, 2016

Typical of a person that is dangerous with a little bit of knowledge.

stonerock · Mar 10, 2016

I am LLC farming and small construction co, no employes anymore, but still have WC on myself also had aflack. aflack was more expensive and less pay back then wc so got rid of aflack and kept my wc insurance

Delawaresurfman · Mar 10, 2016

Certainly check with the state you are in. A freind has a small tree service. He could not get workers comp on himself. The workers yes. The reason being if business got slow he could claim hurt and get paid from workmanship comp. this was about 15 years ago and things may have changed. He had 3-4 employees usually.

GeneMO · Mar 10, 2016

She has it bass ackwards. She would be the one to have to carry it. But only if she has over a certain number of employees.

The most she should ask of you is if you have liability insurance for your business in case you mess up something of hers.

And if you have health insurance on yourself, then she shouldn't be concerned.

There is also performance bonds, but if she wants that she is a pain.

She sounds like the kinda person you dont want to work for anyway. I would leave as quickly as possible.

She will soon be able to get no one to work for her.

Gene

2underage · Mar 10, 2016

I believe it varies by state. Here in the stick-um and tax-um NY just abut anyone who will work as a contractor needs to carry it even if you are your businesses only worker. The Amish do not have any insurance and they get a lot of work because of it. Of course the Amish will not sue you if they get hurt while working for you.

DWF · Mar 10, 2016

In Minnesota I ran a small logging company. I was the sole owner not a corporation. Employees had to have workers comp coverage which I paid. Even if I only had one employee I paid. The owner in this situation was exempt. If I was a corporation then I would have had to cover myself. Now I run a small excavating company with myself as the only employee so no workers comp insurance. However I am required by many projects to carry General Liability insurance which covers all the work I do.
DWF

Dune Country · Mar 10, 2016

If I remember right here in Oregon it's 4 or more employees, the wife and I even have to pay unemployment on ourselves, I've tried but she won't fire me.

Dick L · Mar 10, 2016

I have had my own factory here in Ohio for 40 years and never had workers comp on myself or wife. We have never taken a pay check as we are DBA (doing business as) so we are not employees and not eligible. In a corporation I would be an employee and would have to pay into it for myself.

I also think she has been ill-advised or just mixed up. You might want to get a note from a lawyer sent to her.

Dave H (MI) · Mar 10, 2016

I am not going to swear to what workers comp is in your state, but in Michigan if you are an employee you get covered by workers comp. If you are a subcontractor, two situations can exist. Either you are deemed to be self employed and carry your own comp, or you will be covered by the policy of the "employer"(bad word as you are not an employee). Every comp audit I do here they ask for sub contractor info and if you have not obtained a certificate of insurance from the subcontractor, then the amount you paid them gets added into compensation on the audit and the rate goes up. You are technically a subcontractor and self employed, so you need to cover yourself. IF you do not, she would have to. Easier to find someone who is actually running a landscape business and carries comp. That is my take on it from 30+ years of working with PITA workers comp insurance auditors. I hate those audits, but they are easy money.

David G · Mar 10, 2016

Of course they won't......

David G · Mar 10, 2016

I get audited for it every year, the price is determined by my experience rate and total paid hours

farmerwithmutt · Mar 10, 2016

Couple cases I'm familiar with one woman worked off farm to have insurance her husband got gored by bull insurance denied because he had a job where he was self employed and could have workman's comp. In my case I got hurt at work they said no you got hurt on the farm no workman's comp and then disabilty insurance I had for injury wouldn't pay either . So it's like with medical insurance even think you got it through work you don't.

Dave H (MI) · Mar 10, 2016

Everyone gets audited for it once a year. The forms get sent to me and I fill them out. I don't know about the experience rate as I do not get involved in calculating the premium. Gross pay is the number they are interested in. Work performed is another. Never been asked to document hours. Michigan UIA uses an experience rate but that is not comp. Just makes sense, though. Number of claims would enter into it.

37chief · Mar 10, 2016

She may be getting her formation from her Doctor brother. I do a field for him also. Wouldn't bother me if he dropped me. His field is around a 60 mi round trip. Her field is real close. Like someone would always say at work, when things were going bad. He would say: Now would be a darn good time for me to quit. Stan

huntingreen2day2 · Mar 10, 2016

It is required in Tennessee. You can get an exemption but it cost $200 for 2 years.

oldtanker · Mar 11, 2016

(quoted from post at 17:54:43 03/10/16) She has it bass ackwards. She would be the one to have to carry it. But only if she has over a certain number of employees.

The most she should ask of you is if you have liability insurance for your business in case you mess up something of hers.

And if you have health insurance on yourself, then she shouldn't be concerned.

There is also performance bonds, but if she wants that she is a pain.

She sounds like the kinda person you dont want to work for anyway. I would leave as quickly as possible.

She will soon be able to get no one to work for her.

Gene

Gene: I think that if he is a contractor and is contracted to mow for her the responsibility for WC falls on the contractor. Have a new shop put up and the contractor takes care of WC for his workers, not you the land owner. Don't know if I expressed that well? Make Sense?

Rick

MarkB_MI · Mar 11, 2016

If you have insurance that covers you for injuries while you're on the job, you should be able to get certification of that from your insurance carrier. If you carry no such insurance and aren't old enough for Medicare, then I'd say your customer has a legitimate concern.

Back in the nineties I was employed by a big aerospace company in SoCal. Our purchasing folks would not allow self-employed contractors on the premises until they provided proof of insurance.

JOCCO · Mar 11, 2016

Chief let me see if I can help, we just had a WC discussion on a logging forum. 1. it varies by state law 2.Some states have a certificate of self employment and it exempts you. 3. Some states you can buy it for yourself or buy a wavier. Ultimitly it is up to the customer they may want 2 million liability too. The general rule around here is liability and work alone you are ok Many times if there is an accident/lawsuit locally every one gets on the insurance bandwagon.

caterpillar guy · Mar 11, 2016

Being self employed for over 20 years. In MI you can not have work comp on yourself. You can however have a occupational health policy that will cover you. Workers comp will not cover you in MI as self employed. I used to be leased to companies for a few years, and they would require me to have work comp. I would get a dead policy. Where I would pay a set premium, and at the end of the year would have to pay a new premium, and then send in a tax schedule to prove no claims and no employees. Then would get a refund of about half or so back. It has been a long time to remember on this now.
The reason for her wanting you to have work compis if you get hurt on the job. You would be covered. Though I would think your personal insurance would cover you there.

pinball · Mar 11, 2016

I read a long time ago that when you hire some one you need to make sure they are bonded by the state which means they have to have insurance on them and the employees. The problem is people try to get a job done and when they hire people and some one gets hurt then theres a law suit. I suspect some one put a bug in her ear. Probably a nephew or some one in the family or maybe her lawyer. Don't think its a reflection on you but sadly to say its just the times. Tv has made a lot of people look at things differently. State to state is different in there laws. I can remember when a hand shake or word of mouth was as good as good. now its as good as lead.

dhermesc · Mar 11, 2016

What state was this? The only way that works in Kansas is if the husband was working on someone else's farm. If he was working on his own farm the individual policy covers him.

wisbaker · Mar 12, 2016

Used to go through this with our Corporate Council when I was with the county. In one instance I put out an RFP for some engineering work to write plans and specifications for a generator install. The low bidder was a one man band, an EE that worked by himself for himself, by state law he was not required to carry Workman's comp. The Corporate Council wouldn't approve the vendor or contract because he didn't have Workman' comp, he ended up buying a policy for himself. I now notice the new county administrator has a J.D. and don't hear much about the corporate council anymore, don't know if they sacked her or the new Administrator having a JD has overruled some of her petty stuff and since he has the JD he's in the same union and she can't hide behind the protection of the thieves guild ... excuse me I meant to say Wisconsin Bar Association.

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