Workers Compensation Insurance - Construction Contractors

Workers Compensation Insurance - Construction ContractorsBy Gary Rifkin

Worker’s Compensation Insurance for construction-related framing contractors has always been expensive. Danny Harter, owner of DH Framing already knew that much because he faithfully carried this insurance in order to work in legal compliance with State insurance requirements. But what Danny wasn’t expecting – to be suddenly cancelled by his Worker’s Compensation Insurance carrier – happened in November, 2004 – all because “out of the blue,” his insurance carrier simply decided that his company was “too small” for their interest. Danny had two employees, including himself, and a weekly payroll between $1,500 and $2,000.00.
Danny was notified of his cancelled workers comp policy when the client he was busily working for one morning, came up to him and said, “You can’t work on this job – I’ve got a notice here that you don’t have valid Worker’s Comp Certificates with your insurance carrier anymore.” How embarrassing!
Danny obviously lost time on the job, and income. But he did what he needed to do, and immediately started contacting insurance carriers, trying to find someone who would not consider him “too small,” or otherwise, undesirable. After all, he was and still is a successful, hard-working small businessman. Shouldn’t someone be interested in writing his business?
To no avail, Danny could not find an insurance carrier that would underwrite his business. Fortunately, he contacted an insurance agent who just happened to know about the Worker’s Comp Co-Op. “Call these guys,” the insurance agent said. And Danny did. I picked up the phone and talked to Danny about his business, and what happened to him.
Within one week, Danny and his employee were not only back on the job with the client who had to stop his work – he also had payroll services and worker’s comp insurance coverage without those big deposits you have to put down with traditional insurance agents. So Danny saved not only saved his business. He saved additional, unnecessary hours – weeks – of downtime on the job, and those huge upfront fees.
Today, Danny is still a client of mine, and now has a third employee. His lovely wife.
Gary Rifkin -
Workers Comp Co-op - Payroll Consultants Group
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