Here in MA (and maybe everywhere) as a sole proprietor I am not required to have workmans comp insurance. A developer that I am working with has informed me that their insurance company will not insure them unless I and other subs carry comp. Companies sell a plan for around $500.00 that will do nothing other than prohibit me from filing a claim against the developers comp plan. I can not use this plan that will cost me $500.00. To me this stinks of collusion, extortion and plain old bullcrap. The developer wants me to stay with them so they have offered to pay for this but the money is not the point. It is the digust I now have for the insurance industry. anyone else come accross this?

I have the exact same situation as you as the sole proprietor and I am not required to have workmans comp. insurance on myself here in VT. 2 years ago a general contractor that I worked for approached with the same problem and they worked the extra cost into their clients price.Only seen it one time in my 5 years in business.
On a side note I recently changed my liability insurance carrier after they raised my rates 30 percent.(5years,no incidents ever).Found new insurance at the same price I had before.

[This message has been edited by andyp95 (edited 11-21-2004).]

Insurance is a necessary evil. I'm required to carry it for my license. The bright side is that it's not very expensive as a percentage of my business.

Dave

Dave, insurance is not the issue. I am all fo being properly covered. The isssue is an insurance company bullying someone into buying a policy that has no value whatsoever. I must have this policy in order for the developer to get his insurance. This means they sell a policy that you CAN NOT FILE A CLAIM AGAINST. What do get for my $500.00. Nothing. They get me sigining paperwork that makes it impossible to file against the developers policy. Those bastards pocket the money we get nothing. God Bless America!

It sounds like your stuck. If you got your own real workers comp policy it might cost you 10% of your income. If it was possable for the GC to cover under their policy it could be 10% of the job. The $500 sounds like the cheapest way out unless someone elce has an answer. Maybe you can just add it to the bid. Are you sure it is realy the insurance company and not the GC playing games?

Wait. I have an idea...
One other possability. Put someone elce on the payrole to get a comp policy. Make sure the policy has a low minimum. Pay that person almost nothing and then pay 10% of that to the insurance company. Just tell the insurance company that person quit and your looking for someone elce. I think you would then have a comp policy that you pay almost nothing for. The insurance company might want to cancel you because you don't have an emploiee and nothing to pay to them. You can string them along for a while. You might try Nebs Payrole with the Hartford insurance. You pay week by week based on what you pay the employee. You just got to keep telling them sorry I had no employee this week. You are realy just playing a paper game.

Tom

Tom

Tom, I did just that for a couple of years until they cancelled- and it cost me 5 or $600 a year for nothing also.

-Hal

I have had the same policy for work comp. $750 minimum. but I was told that also covered the first $x, thousand of payroll too. I got checks back at the end of the year for $494. My insurance gal was suprised. She said the insurer reserves the right to return it, but rarely ever does.

Insurance companies and politicians run the country and there isn't much we can do.I did pay for NOTHING for many years as you do electricmanscott.The current workers comp law allows you to opt for the insurance to cover yourself or not,even if a sole-proprieter.Same rule if you are incorporated here in Mass.I opted to have insurance on myself...just in case...kinda like a health ins. policy.The cost for electricians is about 4% of gross pay.

shortcircuit

shortcircuit, is this a change in the MA comp ins policy's? It was always explained to me that I was never covered under my comp policy as a sole proprietor. If I Incorporated I would be covered like any other employee. Thanks
Al

capt al...I Inc'd myself 2003 and the WC law had just changed so a sole proprieter can now protect himself with WC Ins.

Also as a corp I can opt in or out of a WC ins. policy as the major share holder...I still must cover my employees.

Seek the specifics from your agent.

shortcircuit

shortcircuit, Thank you for the info. That is great to know.
Al

Another Tip...when I Inc'd myself I had to re-register all my trucks in the new corporations name...well here in Ma there is a 90 day window to move the trucks into the corps name and be exsempt from sales tax to the state,my agent saved me a bundle.

shortcircuit

If it's any consolation, insurance companies are among the first to get reamed on the price when it comes to fixing and repairing what they "insured". Now if you could just get yourself inserted into that foodchain..you might feel a whole lot better about the $500.00, as well as make triple that amount back plus interest . I'm not excusing what they do by any means, just pointing out that it is all relative to where you are standing, how a thing looks...

Trollog, I am not in that "food chain" nor do I wish to be. The people that are reaming the insurance companies are the *******s that make insurance so expensive for honest people like me.