I came across these great safety tips on Zenith’s website for businesses in the landscaping industry:

• Grass Trimmers and Brush Cutters
• Grinders and Chippers
• Hand Tools
• Let Your Tools Keep You Safe
• Personal Protective Equipment
• Power Lawn Mowers
• Powered Trimmers
• Prevent Back and Other Lifting Injuries
• Refueling Equipment
• Riding Mowers: Landscaping
• Safety Increases Production
• Shoveling and Digging

For more information about workplace safety, please visit the Groundskeeping Safety section of their website.

When discussing workers’ compensation insurance with landscaping businesses, I often emphasis the importance of taking a long term approach to controlling premium costs by lowering the cost of claims. I typically recommend partnering with an insurance carrier that is committed to controlling the cost of claims and providing resources to your business that help you prevent workplace injuries. I believe Zenith Insurance Company (www.theZenith.com) is an industry leader in this approach.

Since 1977, Zenith Insurance Company has been a specialist in workers’ compensation insurance. They write coverage in 45 states and the District of Columbia. Zenith conducts business through independent agencies, like BearWise Landscapers. Zenith Insurance Company currently has an A.M. Best rating of A (Excellent). For the latest rating, access www.ambest.com.

They are experts at managing the claims process, getting injured workers back to work, and fighting fraud and abuse whether it relates to providers of medical goods and services or to individuals making false claims. Because of this extensive experience, Zenith leads the way in helping businesses with higher than average experience modifications. Their staff works together with your landscaping business to help reduce workplace injuries and improve their bottom line.
Here are a few of the valuable services provided to Zenith clients:

• Workplace Safety & Health
• Managing Claim Costs
• Quality Medical Care
• Returning Employees to Work
• Fighting Fraud & Abuse
• Providing Claims Legal Services
• Premium Audit Services
• Education & Training

Today, we issued a press release with the 2010 Florida Workers Compensation Rates. We are also sending out the following letter to Florida landscapers:

I would like to wish you a Happy New Year! As we prepare for 2010, I wanted to share some good news about the new Florida workers’ compensation rates. An average rate reduction of 6.8% from the 2009 workers comp rates will be effective on January 1st. This is the seventh annual drop in rates since 2003, when reforms were passed. Since that time, the average rate decrease is 63%.

This news is even better for businesses in the landscaping industry:

Lawn Maintenance Employees (Class Code 9102) - The new rate is 3.49 dollars for every 100 dollars of remuneration. This is a 16.9% reduction from the 2009 rate of 4.20 dollars. This classification has a 71% decrease since the 2003 rate.

Landscape Installation Employees (Class Code 0042) – The new rate is 6.36 dollars. This amounts to a 10.5% reduction, which is also larger than the state average.

Irrigation Employees (Class Code 5183) – New rate is 4.75 dollars for a 7.5% reduction.

Tree Trimming Employees (Class Code 0106) – The new rate is 13.31 dollars, which is actually 2.7% higher than the 2009 rate of 12.95 dollars. Even with this change, this classification has still received a 67% reduction since the 2003 rate.

These new rates will be applied to your policy at renewal. If you have any questions about workers’ compensation insurance, or if you would like to receive comparative quotes, then please do not hesitate to contact us. At BearWise Landscapers, we focus on the unique insurance needs of the landscaping industry and look forward to continually providing practical information and other valuable insurance services to your business.

At BearWise Landscapers, our goal is to provide practical and in-depth insurance information to landscaping businesses. We believe that by providing services above and beyond the typical insurance agency, that we will earn the trust of landscapers and will establish our insurance program as the expert in the landscaping industry. We believe this approach is the best way to conduct business.

This approach has received the attention of other insurance agencies and we were mentioned in this November article by Insurance News & Views, a weekly publication delivered to independent insurance agencies by the Independent Insurance Agents and Brokers Association. The article, written by Veronica DeVore, described how even though more “personal lines insurance customers [are turning] to the Internet for their insurance needs, small business owners clearly prefer working directly with an agent to purchase workers’ compensation coverage.” Here is a quote that mentions our service of providing information to your landscaping business over this website and specific workers’ compensation information on another website:

While this personal touch is clearly valued among commercial insureds, EMPLOYERS has identified a gradual shift in how customers plan to service and perhaps even purchase policies in the future. The survey reports that the Internet’s role in workers’ compensation purchases will increase from 11% to 17% in the next 12 months, and many respondents plan to go online for information and quotes at their next renewal.

“Agents have to earn their role (as an advisor) by delivering more and more value,” says Welch. “They can do so with Internet sites of their own to help the insured obtain information.”

One agency has done just that by creating a separate Web site only for workers’ compensation needs. Drew Roberts, an account executive at Black Bear Insurance Agency in Longwood, Fla., says that while agents are still at the heart of selling workers’ compensation coverage at his agency, the Web site simplifies the process by answering customer questions in detail and by allowing quotes to be submitted electronically. Roberts adds that busy small business owners like to be able to read about coverage and complete quote forms “at midnight” if they want to, and he and his fellow agents like the time they save by directing customers to the Web site when questions arise. The agency plans to add a blog section to address even more customer concerns in an online format.

“It’s a way for us to provide general information and an introduction (to workers’ compensation coverage),” Roberts says. “We don’t have to answer questions multiple times and we can answer them more thoroughly by using the Web site.”

Our hope is that you continue to find this website informative and practical for your business insurance needs. If you have any insurance related issues for your landscaping business that are not addressed on this website, please contact me with them. I look forward to continually providing a quality insurance service to the landscape industry and appreciate the opportunity that you give us to do that.

Thank you!

Many landscapers view insurance as a ‘necessary evil’ and do not understand the advantages they receive when purchasing a required insurance policy such as workers’ compensation. Workers’ compensation is a great example because it is mandated by state governments, and landscaping businesses with employees are required by law to provide the benefits listed in their state statutes for injuries in the workplace. To see the significance of this coverage, please take a stroll with me back into history.

After the American Civil War ended in 1865, the Industrial Revolution made its way from Europe to the United States. Factories were built and many new industries emerged as others made technological improvements. The garment industry in New York and the surrounding areas brought attention to the plight of the injured worker. The conditions were particularly tough and the industry demanded high production. Through the turn of the century, the legal profession in the United States was also growing and the injured workers gained the right to sue the employer.

The judicial systems became backlogged with all of the cases, preventing judges from dealing with other suits and making the entire system inefficient. In the midst of this chaos, the injured workers began to prevail in the rulings and employers lost machinery, buildings, and other property. By 1908, the workers were winning in nearly 15% of all cases and common law developed the concept that industry is responsible for the costs of injuries inherent in industrial occupations.

At the urging of President Theodore Roosevelt, the first “workmen’s” compensation law was passed by Congress to cover certain employees of the Federal Government. Amidst the lawsuits, employers began lobbying with state legislatures to pass similar laws, and in 1911, ten states enacted the controversial law. It was clear that the growing success of litigation was felt by the business community.

The business owners requested that the workers’ compensation laws included what is known as the “great trade-off”. The employer would agree to provide medical benefits and some wage replacement benefits to the injured workers if they would waive their right to sue the employer. Many states passed the laws in order to attract businesses, especially those in the manufacturing industry. By 1949, all the states had at least some form of workers’ compensation insurance in effect.

Today, workers’ compensation has become the exclusive remedy for the injured worker, regardless of fault in the injury. It protects employers from damage suits filed by injured workers and also provides employers with a basis for calculating production costs. It is still administered on a state-by-state basis and landscaping business must abide by the requirements within the states that they operate. As you pay your next premium bill for workers’ compensation insurance, I urge you to keep in mind how this form of insurance developed and the concept of the “great trade-off”.

As business owners, you are often approached with advertisements and salespeople that state you can save 15% or more on your insurance premium from this company or that company. Some of these companies may actually have better rates and would save premium dollars for your business, but other companies will simply cut coverage to lower the premium. It is important to understand the coverage offered by different insurance quotes and how insurance premium is calculated.

Insurance premiums are usually computed using a predetermined rate that is multiplied by either your payroll or revenue totals for the policy term and then adjusted based on your business characteristics. For example, workers’ compensation insurance in Florida has rates predetermined by the state government and all insurance carriers in the state use those rates by multiplying it by your payroll in the appropriate classifications. Here is a link to an article with the 2009 rates for Florida landscaping businesses.

The insurance premiums for general liability policies are based either on your projected payroll or your projected revenues. This rating basis is then multiplied by a rate determined by the insurance carrier. When comparing premiums on these policies, you can look at the specific rate or make sure that both insurance carriers use the same payroll or revenue figures.

Equipment floater insurance typically has separate rates for the value of equipment that is individually scheduled on the policy and the value of unscheduled equipment that is protected under the blanket equipment coverage. As is the case for the other insurance policies, these individual rates should be listed on the ‘declarations page’ of the policy documents.

As a landscaping business, if you ever have questions regarding insurance rates and total premiums, please feel free to ask an insurance agent at BearWise Landscapers. We would also welcome the opportunity to walk through comparative insurance quotes received by your business to analyze differences in coverages and actual rates. Let us know how we can be of assistance to your business insurance needs!

The workers’ compensation insurance rates in Florida have seen many rate revisions over the last couple of years. We have been tracking those changes as you can see from these articles below:

• 2008 Workers Comp Rates
• Upcoming Workers Comp Rates
• January 1st, 2009 Workers Comp Rates
• Changes in 2009 Florida Work Comp Rates
• 2009 Workers Comp Rate Increase
• April 1st, 2009 Workers Comp Rates
• Workers Comp Rates Changing Again
• July 1st, 2009 Workers Comp Rates

We are expecting another upcoming change for January 1st, 2010, because Florida Insurance Commissioner Kevin McCarty made an announcement that he has received a new rate filing from the National Council on Compensation Insurance (NCCI) for workers’ compensation insurance rates. The filing includes an overall average rate decrease of 6.8 percent statewide.

This is good news for landscaping businesses in Florida. “I am very pleased to receive another request for a reduction in workers’ compensation rates,” said Commissioner McCarty. “This is welcome news to Florida employers during these challenging economic times.”

Here is a link to the press release on the website of the Florida Office of Insurance Regulation.

In a previous article, I recommended insurance to landscapers with one owner and no employees. In this article, I will discuss how the insurance needs change when the landscaping business grows and adds two employees. The primary difference in recommended insurance coverage is that the landscaper should add workers’ compensation coverage to protect the company from the liability of injury to these employees.

For a local landscaping business with one owner and two employees, we recommend that the business carries four insurance coverages: general liability, commercial auto, equipment floater, and workers’ compensation.

1. General Liability: This policy provides protection to your business from many types of lawsuits. We recommend that you obtain limits of $1,000,000 for each occurrence and $2,000,000 for the policy period. For lawn maintenance companies, your premium for this coverage will be around 650 dollars for the year and if you install landscapes, your premium will be slightly higher at around 850 dollars. Depending on your business model and other variables, we have several insurance carriers that might be able to offer lower premiums.

2. Commercial Auto: This policy provides protection for your vehicles and the liability arising out of their use. It is important to move the vehicles you use for your business to a commercial auto policy instead of a personal auto policy. We recommend a limit on this coverage to be $1,000,000 combined single limit, and for small landscapers wishing to save money, we recommend that you should not go below $500,000 combined single limit. For a landscaper with two drivers, one truck worth around 10,000 dollars, and one trailer worth around 5,000 dollars, the premium will vary depending on your radius of operations and driving record. If your drivers have a good driving record, you are looking at a premium in the ballpark of 1,500 dollars to 3,000 dollars depending on all those variables. We have many insurance carriers we use for these policies, but have been very pleased with Travelers’ and Progressive’s commercial auto rates and service for landscapers with fewer than 5 vehicles.

3. Equipment Floater: This policy provides protection for your equipment against a variety of exposures with the highest threat being theft. Lawn mowing equipment and landscape installation equipment can be very expensive for a new business and you want to make sure this equipment is protected. For a landscaper with 15,000 to 30,000 worth of equipment, you can expect a premium on this coverage in the range of 200 dollars to 600 dollars. We often package this coverage in wit the general liability insurance policy, but we can also write it by itself through a few insurance carriers.

4. Workers’ Compensation: This policy provides protection for your business when your employees are injured during the course of employment. It will pay the state regulated hospital expenses and a portion of the payroll from missing time off work. Most states do not require your business to carry workers’ compensation insurance until you have over 3 employees, but we recommend that you carry it regardless. Even if you have one part time employee, our agents recommend that you purchase this coverage to protect your business in the event that an employee gets injured. In Florida, for two employees with an annual remuneration of 30,000 dollars, you are looking at a total premium of 1,470 dollars for your workers compensation coverage if your business operations are landscape maintenance and 2,250 dollars of premium if your operations are landscape installation.

With these four insurance coverages, your small landscaping business will have the protection it needs to avoid the losses that would otherwise end your landscaping career. These policies will allow your business to be protected from most loss exposures, so you can focus on expanding your clientele. For more information or to receive comparative insurance quotes, please contact us or complete the online quote request form. We enjoy working with landscapers of all sizes and look forward to being your insurance advisor as your business grows over time.

Many landscapers ask our insurance agents, “what is the difference between remuneration and the basic payroll I have for my employees?” In all states but one, Workers’ Compensation insurance uses ‘remuneration’ as the exclusive basis for computing premiums (the state of Washington currently allows contractors to use hours worked instead). Although payroll is the most common component of remuneration, it is not the only one. In Florida, the rules about remuneration are written by the National Council on Compensation Insurance (NCCI). But keep in mind that some states are non-NCCI jurisdictions, and there may be some significant differences in how remuneration is defined. In Florida, remuneration is the premium base used to calculate workers’ compensation premiums. It is generally referred to as payroll, but it includes more than the employees’ weekly paychecks as noted in the NCCI definition. Remuneration is defined to mean money and substitutes for money and it includes the following:

• - Wages or salaries, including retroactive wages and salaries
• - Total cash received by employees for commissions, draws against commissions, piecework, profit sharing, and incentive plans
• - Bonuses, including stock bonus plans
• - Pay for holidays, vacations, and sick leave
• - Employees’ share of Social Security and similar statutory plans even if paid by the employer

Remuneration excludes some pay received by employees and the following can be deducted from the total remuneration:

• - Overtime - the extra amount of pay above the regular wages may be excluded for overtime hours that are worked by employees.
• - Tips
• - Payments by employees for group insurance or pension plans
• - Special awards for invention or discovery
• - Severance Pay
• - Executive officers have a minimum and maximum limits for their payroll if they are included on the policy
• - Partners and Sole Proprietors have a fixed amount of payroll if they are included on the policy

Please refer to the article entitled ‘Introduction to Workers Compensation Insurance’ for more information on workers comp insurance for Florida landscaping businesses. If you have any more questions about the difference between payroll and remuneration and how this affects the premium on your workers’ compensation insurance policy, please do not hesitate to contact the agents at BearWise Landscapers.

As discussed in multiple agent articles before this one, there have been quite a few changes in the Florida workers’ compensation rates over the past couple of years. In 2009, July 1st will mark the third rate change (the first rate change was on January 1st and another one was effective April 1st). On Wednesday, July 1st, 2009, the following workers compensation rates for landscapers will go into effect and all current policies issued with the April 1st rates will be endorsed to reflect this change. Here are the newest 2009 workers comp rates for landscapers:

• 0042 – This classification is applied to employees that are involved in the installation of landscapes. This classification cannot be used in Florida with employees classified as 9102 unless the operations are conducted by separate work crews. If the work is not separated, then all of the employee payroll must be classified as 0042 since it is the higher rated classification code. To read more details about this classification, please refer to the agent article on class code 0042. The current rate for class code 0042 is 7.11 dollars for every 100 dollars of remuneration.
• 9102 – This classification code is assigned to employees that maintain lawns and gardens. This is your standard lawn maintenance and classification used by most landscaping businesses to rate their workers’ compensation premiums. To read more details about this classification, please refer to the agent article on class code 9102. The current rate for class code 9102 is 4.20 dollars for every 100 dollars of remuneration.
• 0106 – This classification code is used for tree trimmers and specifically it is used for those employees or businesses whose operations involve leaving the ground to trim trees. When ladders, bucket trucks, and any other equipment assists employees to get their feet of the ground to prune or trim trees, then this classification is applied to the remuneration of that job. It also includes the chipping and cleanup activities associated with the tree trimming. To read more details about this classification, please refer to the agent article on class code 0106. The current rate for class code 0106 is 12.95 dollars for every 100 dollars of remuneration.
• 5183 – This classification code is applied to employees of landscaping businesses that engage in the installation or repair of underground lawn sprinkler systems. For a more detailed description of this classification code, please refer to the agent article on class code 5183. The current rate for class code 5183 is 5.14 dollars for every 100 dollars of remuneration.

The employees and operations of most landscaping businesses are classified into the codes listed above. Depending on the nature of work performed, other classification codes may apply to the business. Class code 8810 (rate: 0.28) is used for employees that only do clerical work and 8742 (rate: 0.49) is used for those employees that only have sales duties. Class code 0005 (rate: 5.35) is used for landscapers with employees engaged in nursery operations. We are available to provide you with more information about these classifications and how your own employees should be classified. Feel free to call our office to discuss this rate change and to have one of our agents quote your workers compensation policy.