Small Business looking for WC insurance

[Champ01]

What is the name of your state? Florida

I am trying to get Workman's Comp coverage and have been turned down by 3 insurance companies. They all claim that WC is not marketable in my area. How's a small business supposed to make it if there is no coverage out there?

 

[cbg]

How small a business are you and what is the nature of your business?

 

[Champ01]

Small Business looking for WC

Right now it's a father and son operation but we are looking to add on two more employees for the new year. So the employee count will be 4-5 people. We have an Industrial Grinder in which we do land clearing and mulching. Any advise would be appreciated.

 

[cbg]

Until you have 4 employees, w/c is optional in the state of Florida (unless you are in construction, but you aren't). If you have not managed to find coverage by the time you hire those additional workers, contact the Division of Insurance. They may be able to direct you to a local association that offers coverage to small businesses on a group basis.

 

[Champ01]

Small Business

Thanks, Mary. From research that I have done I had figured out the part about WC but did know about Division of Insurance. I have found out that we need liability insurance. Does that also include being Bonded, or is that something entirely different?

 

[cbg]

Who's Mary?

No, being bonded is not the same thing as having liability insurance.

 

[Champ01]

Bonded

Mary? Not sure, I must have been very tired! Okay, so how do I get Bonded? Does the insurance company do that as well? I am currently getting quotes on General Liability.

 

[cbg]

Now you're getting outside the realm of my experience. I'm also a small business owner but the nature of my business is such that I've never needed to be bonded. I have professional liability insurance but that's not what you need. Have you asked your insurance broker about this?

 

[Champ01]

New Problem Arises

Okay, I have finally tackeled the WC issue. We have 4 employees so we do not need WC. Now we have another obstacle to overcome. Another small business owner that we work along with is being forced into buying WC when he does not want to and by law he does not have to but because the contractor that he does alot of business with is demanding that he have it for 1 employee that is not family. Him and his 3 sons are involved with the business him being exempt as the owner. Leaving his 3 sons plus 1 other guy. He's got business liability coverage and the contractor is telling him that he won't do business with him unless he has WC because if something was to happen to that 1 employee who is not family they are afraid that he will turn around and sue their WC coverage. Now he's seriously thinking about letting that guy go because he can't afford WC. Especially when it's because of 1 guy. They have worked with this contractor for years and they trust his family in the event that if there was an injury they wouldn't go after them, but they are worried about the 1 guy. I just think it's totally unfair. Do you understand the situation? Am I making sense? I do not know how the WC coverage works but if he applied he would have to pay the rates based on 5 employees wouldn't he? You can't base it off of one employee because normally you wouldn't be expected to pay WC on one employee. ?? This is a big mess!

 

[cbg]

I understand what you're saying but I honestly don't know what kind of advice you're looking for here. The law is the law, regardless of whether you consider it fair or not. I'm trying to help, but what is it that you want me to tell you?

 

[Champ01]

WC PROBLEM

I want to know what they base WC rates on. Can you get coverage for one guy alone while the other 3 are exempt?

 

[cbg]

That is ENTIRELY up to your state law and the specific circumstances.