Im starting a tree service, need startup help

[Normzilla]

Hello band. I'm working on getting my tree service contractor license, and insurance. Myself no emoyees. But will have to hire, sub contract my friend and climber, on jobs. Can I cover him under my insurance policy? If he is a sub contractor type. What is needed to protect me if anything happens. And would I have to provide workers comp? Any tips appreciated. Thanks in advance. Norm I'm in California.

 

[Deets066]

Hello band. I'm working on getting my tree service contractor license, and insurance. Myself no emoyees. But will have to hire, sub contract my friend and climber, on jobs. Can I cover him under my insurance policy? If he is a sub contractor type. What is needed to protect me if anything happens. And would I have to provide workers comp? Any tips appreciated. Thanks in advance. Norm I'm in California.

Their insurance would cover their workers comp. you would still need an umbrella of xxxx$ amount to cover damage and such.

Don't hold me too this but I'm pretty sure that's how it would work

 

[Normzilla]

Their insurance would cover their workers comp. you would still need an umbrella of xxxx$ amount to cover damage and such.

Don't hold me too this but I'm pretty sure that's how it would work

Thanks buddy. So what I'm wondering my climber friend has full time job for a company. Would climb as needed for me, so how could I cover him?

 

[Deets066]

Thanks buddy. So what I'm wondering my climber friend has full time job for a company. Would climb as needed for me, so how could I cover him?

Ok, you would have to hire him through the company that he works for now. So that he is drawing a paycheck from his full time job and he would be fully covered by his employer.

Or, you hire him as an employee and pay workers comp on him.

Or, he provide his own insurance as a sub contractor for you.

There are loopholes for certain coverages that I'm not that knowledgeable in, such as if you subcontracted him he could be provide partial insurance and you could write him as addional insured. But I don't much about how that works.

Hope this helps

 

[jacob j.]

You might be able to hire him through a temp agency for OWCP coverage and payroll taxes, and then pay him a cash "incentive" out of pocket. I used to hire guys for my forestry contracting business that way.

 

[Normzilla]

You might be able to hire him through a temp agency for OWCP coverage and payroll taxes, and then pay him a cash "incentive" out of pocket. I used to hire guys for my forestry contracting business that way.

Thanks both of you. Jj I may try that. Because workers comp, as we know is a killer. And not being a cheap skate, just having him help from time to time. If I get enough buisness, then I will go the full time employee route.

 

[Deets066]

Thanks both of you. Jj I may try that. Because workers comp, as we know is a killer. And not being a cheap skate, just having him help from time to time. If I get enough buisness, then I will go the full time employee route.

Yeah I know there are ways around it, just make sure you have it straight just in case

 

[Normzilla]

Yeah I know there are ways around it, just make sure you have it straight just in case

Absolutely agree. Thank u

 

[drf256]

You live in a Communist state, as I do. No doubt, the deck will be stacked against you if things ever go awry.

I'd pay him off the books. Insurance companies will do anything in their power to not pay a claim. I highly doubt that his other employers insurance will cover him outside of work done for that employer, regardless of the scope of his job.

I've been in business for 20 years and have found out your best course of action is to follow the rules. The *s-wordstorm you will deal with when something bad happens will make you wish you paid six times the cost of being above board.

 

[Isaac]

Hello band. I'm working on getting my tree service contractor license, and insurance. Myself no emoyees. But will have to hire, sub contract my friend and climber, on jobs. Can I cover him under my insurance policy? If he is a sub contractor type. What is needed to protect me if anything happens. And would I have to provide workers comp? Any tips appreciated. Thanks in advance. Norm I'm in California.

My wife is a Senior Business Insurance Specialist. She recommends you getting general liability to protect your business with least 1 million limit. For the sub contractor you would want them to have their own general liability insurance and add you as an additional insured. Tree services companies have a lot of risk. It will be hard to find a carrier that will provide this coverage. Best recommendation would be reaching out to a local insurance broker. They work with a lot of different companies. They will get you the best coverage for the best price. Workers comp is also recommended but not required if you will not have any W-2 employees. Hope this helps.


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[Lightning Performance]

My wife is a Senior Business Insurance Specialist. She recommends you getting general liability to protect your business with least 1 million limit. For the sub contractor you would want them to have their own general liability insurance and add you as an additional insured. Tree services companies have a lot of risk. It will be hard to find a carrier that will provide this coverage. Best recommendation would be reaching out to a local insurance broker. They work with a lot of different companies. They will get you the best coverage for the best price. Workers comp is also recommended but not required if you will not have any W-2 employees. Hope this helps.


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That's how most brokers explained it to me in the past. You are separate from him and he has his own policy. They say if not you will be burned at the stake for his screw ups or mistakes/accidents. Insurance companies not insurance charities. Nothing is guaranteed. They all love to place blame down to 1%.

 

[Isaac]

That's how most brokers explained it to me in the past. You are separate from him and he has his own policy. They say if not you will be burned at the stake for his screw ups or mistakes/accidents. Insurance companies not insurance charities. Nothing is guaranteed. They all love to place blame down to 1%.

Agreed. Insurance companies are ruthless and crooked. When someone ask what my wife does for a living, I say she's the devil lol. [emoji85]


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[fearofpavement]

What you will be doing is hiring a "contractor". You should not be responsible for insuring him, he needs to make sure he does that for himself. Since he does this same kind of work for others he would qualify as a contractor. Also, if he isn't available, you can hire a different contracting climber if you need one. Sounds like you would just need him from time to time and not on a daily basis.
A number of climbers just work for cash but this can lead to problems. Also, don't forget to get his tax info as you will need to file a 1099 at the end of the year. (assuming you pay him more than $600 annually). That's all Fed stuff, no idea about Left Coast Law.

 

[Lightning Performance]

Agreed. Insurance companies are ruthless and crooked. When someone ask what my wife does for a living, I say she's the devil lol. [emoji85]


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ROF! nice

 

[Normzilla]

Thank you all very much....

 

[Jose A.S.T.S.]

Lots of good info here, you guys are spot on....