ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
Top Posters(30 Days)
Potseal 11
Recent Posts
600 KW 120/208 3 Phase Y protection
by Yooperup. 07/21/17 09:27 AM
1913 American Electrician's Handbook
by gfretwell. 07/20/17 01:08 PM
Green House wiring
by ghost307. 07/20/17 09:10 AM
Permit Snafus...AHJs and Contractors Jump in
by HotLine1. 07/18/17 08:06 PM
New in the Gallery:
SE cable question
Popular Topics(Views)
239,186 Are you busy
174,581 Re: Forum
167,018 Need opinion
Who's Online Now
0 registered members (), 36 guests, and 7 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate This Thread
Page 1 of 2 1 2
#154851 - 11/21/04 09:36 PM Insurance (Extortion) companies  
Electricmanscott  Offline
Joined: Jan 2002
Posts: 1,457
Holden, MA USA
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?

Business, Office, Estimating, Legal:

#154852 - 11/21/04 10:13 PM Re: Insurance (Extortion) companies  
andyp95  Offline
Joined: Mar 2004
Posts: 46
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).]

#154853 - 11/21/04 11:13 PM Re: Insurance (Extortion) companies  
Dave55  Offline
Joined: May 2004
Posts: 697
Crystal Lake, Illinois, USA
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.


#154854 - 11/22/04 08:28 AM Re: Insurance (Extortion) companies  
Electricmanscott  Offline
Joined: Jan 2002
Posts: 1,457
Holden, MA USA
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!

#154855 - 11/22/04 08:39 PM Re: Insurance (Extortion) companies  
Active 1  Offline
Joined: Feb 2003
Posts: 687
Grayslake IL, USA
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.



#154856 - 11/22/04 09:42 PM Re: Insurance (Extortion) companies  
hbiss  Offline
Joined: Dec 2003
Posts: 886
Hawthorne, NY USA
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.


#154857 - 11/24/04 01:20 AM Re: Insurance (Extortion) companies  
Jps1006  Offline
Joined: Jan 2004
Posts: 615
Northern IL
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.

#154858 - 11/25/04 07:06 PM Re: Insurance (Extortion) companies  
shortcircuit  Offline
Joined: Jun 2004
Posts: 608
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.


#154859 - 11/26/04 12:17 PM Re: Insurance (Extortion) companies  
capt al  Offline
Joined: Jun 2004
Posts: 206
Norton, Ma USA
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

#154860 - 11/26/04 02:31 PM Re: Insurance (Extortion) companies  
shortcircuit  Offline
Joined: Jun 2004
Posts: 608
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.


Page 1 of 2 1 2

Member Spotlight
Montreal, Quebec, Canada
Posts: 28
Joined: March 2011
Show All Member Profiles 

2017 NEC and Related
2017 NEC
Now Available!

Shout Box
Powered by UBB.threads™ PHP Forum Software 7.6.0
Page Time: 0.017s Queries: 15 (0.003s) Memory: 0.8185 MB (Peak: 0.9922 MB) Zlib enabled. Server Time: 2017-07-21 22:53:43 UTC