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

 

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!

 

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.

 

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.

 

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

 

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.

 

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%.

 

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?