Why the need for Worker's Comp Insurance

[kblickster]

Why do some companies require a one truck/one driver operation to have worker's comp insurance?

I know that I can buy a ghost policy for 800.00 and cover myself - but what is the point? I know it's worthless and can't stand the thought of wasting my hard earned money on it.

[pepe4158]

Why do some companies require a one truck/one driver operation to have worker's comp insurance?

I know that I can buy a ghost policy for 800.00 and cover myself - but what is the point? I know it's worthless and can't stand the thought of wasting my hard earned money on it.

hmmm you incorporated then?....just curious why?...coulnt see any advantage to it myself...plz enlighten me

[Bigmon]

I've never been able to find an insurance company that will let you write Workers Comp on yourself. The reason I've been told is because every O/O would file claims against themselves and take the summer off.


If you can get it let me know. A vacation tax free would be nice.

[pepe4158]

I've never been able to find an insurance company that will let you write Workers Comp on yourself. The reason I've been told is because every O/O would file claims against themselves and take the summer off.


If you can get it let me know. A vacation tax free would be nice.

OMG ...thats so funny n true....it never occured to me.
Like firing yourself to collect unemployment lol
What a call........yes insurance Co....my 1 damn employee was stupid enough to get hurt n needs $ .....oh sorry to hear who was he....ME!

[ncnewbie]

North Carolina (maybe other states?) require 1 owner/ 1 truck and up to carry workers comp. If the o/o doesn't have worker's comp and gets hurt, NC holds the company (NC or not) that hired them responsible for paying. So the companies are just covering themselves.

[Rev.Vassago]

I've never been able to find an insurance company that will let you write Workers Comp on yourself. The reason I've been told is because every O/O would file claims against themselves and take the summer off.


If you can get it let me know. A vacation tax free would be nice.

In HHG, the I/C is required to carry a workmans comp policy on himself, and all his labor. They aren't cheap, either. Fortunately, in Wisconsin, I can get away with carrying an Occupational Accident policy on myself instead of a workman's comp policy. It's much cheaper. My Occ Accident/Work Comp policies run me about $350 per month. If I had a Workman's comp policy on myself instead of Occupational Accident, I'd probably be paying about $600 per month for all those policies.

And FYI - the Occupational Accident coverage pays lousy. I think it pays like 25% of your income at best.

[pepe4158]

yes i understand...the company....so why incorporate? I didnt.

[Kranky]

Why do some companies require a one truck/one driver operation to have worker's comp insurance?

I know that I can buy a ghost policy for 800.00 and cover myself - but what is the point?

Better read the fine print.

Those "ghost policies" are nothing more than a certificate to show your customer you have a work comp policy.

It does not provide any coverage to you as an O/O.

As was said, the customers require proof of work comp from each subcontractor, or else at the end of their policy year when their insurance company audits their books, the customer would have to pay for work comp on a percentage of the amount of money they paid you during that period.

Most customers do not want to pay that, hence the requirement that each subcontractor must provide a work comp certificate.

[Bigmon]

And FYI - the Occupational Accident coverage pays lousy. I think it pays like 25% of your income at best.[/quote]


Hmmm....what would Steve do. How would they figure out 25%.

[pepe4158]

I've never been able to find an insurance company that will let you write Workers Comp on yourself. The reason I've been told is because every O/O would file claims against themselves and take the summer off.


If you can get it let me know. A vacation tax free would be nice.

In HHG, the I/C is required to carry a workmans comp policy on himself, and all his labor. They aren't cheap, either. Fortunately, in Wisconsin, I can get away with carrying an Occupational Accident policy on myself instead of a workman's comp policy. It's much cheaper. My Occ Accident/Work Comp policies run me about $350 per month. If I had a Workman's comp policy on myself instead of Occupational Accident, I'd probably be paying about $600 per month for all those policies.

And FYI - the Occupational Accident coverage pays lousy. I think it pays like 25% of your income at best.

hmmm k Rev....so your saying this is a furniture moving thing only?....right?
Hmmm didnt know Kblick was in HHG ...cuz he was talking about droping a trailer somewhere earlier....hmmm you guys drop trailers...i thought your all live unloads?

[Kranky]

I should add that if you have one of those ghost policies, at the end of the policy year the insurance co. will audit your records, and as long as you can prove that you had no employees during the policy period, then you will receive a refund for all but about $200.00 of your premium, so the effective yearly cost of that certificate is about $200.00.

But the when you renew for the following year, it's another $800.00 (roughly)

At least that's how it worked when I was O/O dump truck.

When I had employees the work comp cost me about 12% of gross payroll if I remember correctly.

I never could see any sense in an O/O incorporating. If you're the driver and you're involved in a crash, you're personally liable anyhow whether your company is incorporated or not.

If you have employees then incorporation is a must.

[RostyC]

In HHG, the I/C is required to carry a workmans comp policy on himself, and all his labor. They aren't cheap, either. Fortunately, in Wisconsin, I can get away with carrying an Occupational Accident policy on myself instead of a workman's comp policy. It's much cheaper. My Occ Accident/Work Comp policies run me about $350 per month. If I had a Workman's comp policy on myself instead of Occupational Accident, I'd probably be paying about $600 per month for all those policies.

And FYI - the Occupational Accident coverage pays lousy. I think it pays like 25% of your income at best.

Just curious, what is the percentage on a HHG operation? not including yourself, just labor.

Mines 9% for drywall, again this does not include myself.

My brother in law is in the roofing business.............sit down.............60% :shock:

Some insurance companies won't write "ghost polices." My first insurance company wouldn't, I'm not sure if the one I use now will or not.

Do the percentages vary much from a flatbed operation to say a reefer operation?

[Rev.Vassago]

hmmm k Rev....so your saying this is a furniture moving thing only?....right?

No, I'm not. When I was first interviewing companies, I found several who required a work comp policy. HHG, however, was the only industry who required me to carry one on lumpers as well.

Hmmm didnt know Kblick was in HHG

Huh?

Just curious, what is the percentage on a HHG operation? not including yourself, just labor.

Mines 9% for drywall, again this does not include myself.

If I'm not mistaken, I believe it's about 10%, but it depends upon what state you're in. WI is a pretty decent state when it comes to work comp rates.

My brother in law is in the roofing business.............sit down.............60% :shock:

I've heard that roofing is horrible when it comes to work comp.

Do the percentages vary much from a flatbed operation to say a reefer operation?

I would believe so. I'm sure the amount of insurance providers who actually write these policies are pretty slim. I couldn't find one independently who would write the policy - I ended up having to get it through my company. Those companies who do write them know the industry pretty well. The company that carries my work comp and occupational accident policies is Transguardwhich specializes in insurance for the moving industry.

[pepe4158]

Ummm k Rev...im confused...I thought we were only talking how it pertains to 0/oPs n own authority?

[RostyC]

Ummm k Rev...im confused...I thought we were only talking how it pertains to 0/oPs n own authority?

I don't see where it would be much of a difference, if you have employees they'll quote the rate that pertains to your business. They shouldn't care if you lease or have your own authority, they only care about your employees.

[Rev.Vassago]

Ummm k Rev...im confused...I thought we were only talking how it pertains to 0/oPs n own authority?

From the original post:

Why do some companies require a one truck/one driver operation to have worker's comp insurance?

It's pretty clear we're talking about trucking companies that require their owner/operators to carry work comp insurance.

[Orangetxguy]

Ummm k Rev...im confused...I thought we were only talking how it pertains to 0/oPs n own authority?

Pepe..you live in Califonia correct?? The state of CA requires you to carry Workman's Comp on yourself.. I do believe.

[Bigmon]

Pepe..you live in Califonia correct?? The state of CA requires you to carry Workman's Comp on yourself.. I do believe.[/quote]


In CA you sign a waiver and not have it if you're a one man operation. If you have any employees then you have to have it.

[GMAN]

Most states will allow you to have an occupational policy in lieu of a workers comp policy. OOIDA has a couple that run about $140/month. One pays $400/week, the other $500/week. One of them has a lifetime benefit of $500M, the other $1MM, if I remember correctly. I would prefer the occupational policy. They are less costly and less hassle to collect.

You can sign a waiver for every state if your a one man operation. In some states like New Hampshire your not required to have it at all so in my case it doesn't matter.