Worker Comp rate increases over the years

JBurd

New member
My insurance carrier has me divide my employee's labor between Roofing (ie roof cleaning) and Janitorial (ie everything else). I first had an employee in 2011. Here are my rates ($ premium per $100 in gross payroll) over the years and the percentage increase compared to the previous year. Note...I have never had a claim and my gross payroll has gone up every year yet my rates have more than doubled over these years. (so much for good customer and volume discounts!).

yearJanitorial% increaseRoofing% increase
2011-20126.5124.9
2012-20138.0824.1228.6515.06
2013-201410.3427.9726.98-5.83
2014-201511.8814.8930.4212.75
2015-201614.3720.9636.7820.91

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JBurd

New member
What is everyone currently paying for work comp? I'm class code 9170 and my rate is $16.30 per 100. If anyone is significantly better than that I'd love to know your carrier.
 

flanbo

New member
Thats pretty normal. If your guys work overtime pay it in cash and save you and them money. Paying comp sucks.
 

DunRite

New member
In NJ the rates are regulated by the State.

Those rates sound comparable to what we pay here

Shop around if your allowed to
 

junker1

Roundtable Host 2009
$14.37 for 9170 and $4.60 for 9014. $8.20 for roof shoveling. I run three codes and I split them up when I use them, but I mostly use the 9014.
 

junker1

Roundtable Host 2009
If you make money from it, does it cost you anything????

Makes it harder to compete. My insurances cost me $3 per hour of my operating costs. the more I pay for expenses the higher my rates need to be, and that may be costing me jobs, which in the long run cost me money.
 

JBurd

New member
If you make money from it, does it cost you anything????

Even things that make you money do have a cost. But insurance doesn't make you money...it protects you from loss. Work comp claims can be huge and literally last a lifetime, but the difference between paying $16/100 vs $10/100 is $6000 out of pocket every year if my payroll is $100k.
 

DunRite

New member
Having insurance is also having credibility between you and half the guys out there

I always make it a point to advise a client that im fully insured and to check the others

Commercial jobs - everyone has to have it, Residiential is where the hacks get away with it

A small solace
 

flanbo

New member
The only way around it is paying your guys as subs with a 1099. But then theres issues with that also
 

BrettArthurLEC

New member
Comp can definitely be a hassle in Pressure Washing, especially once you cross into guys getting on the roof. It takes you from having multiple options for coverage to very few that will take it on, and because of that they have the market sort of cornered. I work on the pressure washing companies behalf to navigate that arena and shop out the comp/payroll. I have access to 30+ PEO/Employee Leasing markets in which most will find themselves having to go to in this industry. The standard work comp market is consistently tightening their grip on what they are willing to cover. I'd be happy to help at least see if your current PEO or option is charging at the best rate. I can generally push for discounts up to 20%.
 
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