| Want to save money on your insurance costs? | | | | updated certificates of insurance on file. The |
| Got your attention now, didn't I. Two issues that | | | | easiest way the see that you have current |
| seem to come up on a regular basis that can | | | | information on file is to make this information a |
| cost you a great deal of money are current | | | | condition of payment. It goes without saying that |
| certifications of insurance from the various | | | | once payment has been made it is much harder |
| subcontractors you use to the use of proper | | | | to collect this information. The more organized |
| classifications for your employees on your | | | | you are the easier the audit process is and the |
| workers compensation policy. | | | | less likely that you will be charged for uninsured |
| Whether you do commercial or residential work | | | | subs or even insured subs that you did not collect |
| your clients are asking that you do more | | | | certificates of insurance for. |
| complicated jobs. These projects require the use | | | | Workers compensation and proper classifications. |
| of many different disciplines to bring a job | | | | You'd be surprised at how many audits I see |
| together. To complete these jobs many of you | | | | where employees end up in a higher classification |
| rely on subcontractors, they perform many and | | | | because people are unprepared for the audit, |
| varied jobs. Electrical work, carpentry, irrigation, | | | | unaware of the process or just not informed that |
| masonry, tree work and pool work are few that | | | | different classifications exist. There is a process |
| come to mind. As the contracting party you are | | | | and manual that dictates classification rules. The |
| responsible for all of the various entities that you | | | | more accurate your records the more |
| use to complete a project. In the event that a | | | | opportunity you have for premium savings. In |
| claim for bodily injury or property damage is the | | | | some cases it is possible to split a single |
| result of the actions of a subcontractor that you | | | | employees payroll between two codes, say |
| hired you /your insurance company will ultimately | | | | landscape gardening and lawn maintenance. The |
| be responsible for those actions. You purchased | | | | key is accurate records and who ever meets |
| insurance for this very reason and hopefully you | | | | with the insurance company auditor must be |
| only hire subcontractors that are insured, thereby | | | | educated as to the process. The rate for every |
| making their insurance company responsible. | | | | job description is different. I have clients that |
| Insurance companies make a nominal charge to | | | | have as many as seven job classifications on their |
| your general liability policy for insured | | | | workers compensation policy, each with a |
| subcontractors, they will change you the | | | | different rate. In some cases rate difference |
| appropriate rate for uninsured subs. People that | | | | between landscape gardening and lawn care is |
| use a lot of subcontractors usually have a system | | | | 100%; that adds up fast when improperly |
| in place to see that all subs are insured and keep | | | | classified. |