Workers Comp?

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#1

Originally Posted By: egriffin
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I received a call yesterday to do an inspection on a newly constructed home which has already received its C/O. This was not for a code inspection.


The project manager whom I was to coordinate with advised me that the builder required that I carry workers comp. I understand why he would want this, but haven’t come across or heard of this before.


Do many of you carry workers comp even if you don’t have employees. If so, what is a common minimum and what would I expect to pay for it.


Seems that until other builders start requiring it that it wouldn’t be too cost beneficial just yet.

#2

Originally Posted By: gbell
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Good Luck finding a policy that is affordable.

–
Greg Bell


Bell Inspection Service

#3

Originally Posted By: Blaine Wiley
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Having been down this road already, in FL if you have less than 4 employees in your company you are automatically exempt from carrying workers compensation insurance. Is the builder aware of this?

#4

Originally Posted By: jpeck
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bwiley wrote:
Having been down this road already, in FL if you have less than 4 employees in your company you are automatically exempt from carrying workers compensation insurance. Is the builder aware of this?


Not AUTOMATICALLY exempt, but you can apply for the exemption and you pretty much automatically get it.

Without the exemption, the builder could require you to either have WC or not allow you to do the inspection. Of course, because it IS still their property until closing, they don't have to allow you on the site to do the inspection anyway.

Have no fear, let your client close (and on their walkthrough inspection sheet write something to the effect of "This walkthrough inspection also includes the attached, to be attached later, inspection report by 'write-in-company-name', because restrictions placed on them by you, the builder, precluded them from being able to make a thorough inspection of the property before closing. Thus, their inspection must be done after closing, but will be attached to this walkthrough inspection at that time.")

Typically, the builder do not let them write the entire thing out before jumping in and taking the walkthrough inspection list away from your client. Instruct your client to tell the builder that they cannot, and will not, sign the walkthrough inspection list without that, or they can postpone the walkthrough, allow the inspection, then just attach the inspection report to the walkthrough inspection list.

Chances are, the builder will allow neither, and the client will go to closing without a signed walkthrough inspection list, meaning that the list is invalid and incomplete.

Really creates a bind for the builder (and, unfortunately, the client, but sometimes that is the only way to protect themselves).

--
Jerry Peck
South Florida
#5

Originally Posted By: gjohnson
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Workers comp insurance for small companies can be very expensive. It is done based on a formula also based on your danger rating. I think that HIs would be up on the list. With all the ladder climbing and crawl spaces.

–
Gary (Snicker’s) Johnson - Free NACHOS


The NACHI Foundation


Executive Director


301-591-9895

#6

Originally Posted By: chorne
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I would say that if they already have the CO, than the builder


is pretty much out of the picture.


Is the builder paying you for the Inspection?


I do new construction Inspections alot and the builder is never
present.

??

Carla

#7

Originally Posted By: tallen
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In AZ a sole proprietor may get workmans comp and from what I was told by the State the cost is figured by how much money you pay yourself in any given quarter. I am still checking it out.

–
I have put the past behind me,


where , however, it now sits, making rude remarks.


www.whiteglovehomeinspections.net

30 Oct 2003-- 29 Nov2005
#8

Originally Posted By: egriffin
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The property does have the C/O, but the closing isn’t set until next week, so yes the property does still belong to the builder.


That is a good suggestion about having the buyer write in the clause to have the inspection done after the walk through. I am sure the builder won’t like it though.


I did check around today just to see about WC. I was pretty much told that it is near impossible to get (at least here in Florida) and if I could find it, it would be very expensive. It probably would not be worth the cost.

#9

Originally Posted By: egriffin
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Where in Florida would you apply for the WC exemption?

#10

Originally Posted By: jpeck
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Ed,


http://www.fldfs.com/WC/pdf/DWC-250.pdf

--
Jerry Peck
South Florida

#11

Originally Posted By: Chris Butler
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Jerry,


great post earlier about what to do or suggest to the homebuyer on how to deal with the builder. This should be highlighted and bumped regularly.


As for Work Comp. each state is different, and most of the individual’s that are sole proprietors’ cannot rate themselves and are usually exempt from claims. If you have employees that are inspectors, they rate the employee on the risk per hundred dollars. As an example in the state of California a carpenter is $44.00 per hundred earned… a secretary is $3.80 per hundred earned… expensive to operate a business in California, huh.


Good Luck!


Sincerely,

–
Chris Butler


(former) Director of Membership @ FREA