I hear it so often with artisan contractors, they don’t think they need workers compensation insurance because they have too few employees or the general contractor that they work under provides that coverage. While these are reasons that allow them to legally avoid buying a policy, in both cases they leave the artisan contractor’s destiny in the hands of others and may ultimately cost the small contractor his or her business. Here’s the real scoop on workers compensation insurance in North Carolina for small contractors.

It doesn’t matter which area you work in, whether you are hunting for painter insurance, plumbing insurance, lawn care insurance, carpenter insurance, landscaping insurance, grading insurance or even insulation or flooring insurance, you really will do better to always purchase a work comp policy for your small contractor business. Let’s take a look at the three reasons people don’t purchase workers comp insurance for their small business.

Reason #1 - Less than 3 employees. While it is true that in North Carolina, if you have less than 3 employees, then the state will not require you to purchase a workers compensation insurance policy, what is seldom said in the next sentence is that whether or not you buy insurance, you are still on the hook for the claims. The workers compensation insurance policy was created as a compromise. Workers gave up their rights to sue their employers in most cases and the trade off for them was that employers agreed to pay the benefits associated with injuries and sicknesses on the job according to the statutory payouts required by each state. So, as the employer, you will have to pay for your employees job related injuries, sicknesses and time out of work in accordance with the NC workers compensation statutes. If they are permanently disabled or even out of work for several months, these costs could run into the tens of thousands and possibly close your business. Many small contractors are choosing not to buy workers compensation insurance based on their number of employees and this could have a devastating effect on their business.

Reason #2 - It costs too much. Let’s face it, workers comp insurance can be expensive. But if you have an agent that specializes in your type of business, then you will have a much better chance of getting your policy set up in a way that saves you the most money while still protecting you from financial ruin. And really while the short term costs may seem high what is your entire business worth?

Reason #3 - The general contractor covers it. While for some small contractors, this may be true, there are several reasons why this is a poor choice. First of all, if the general contractor were to go out of business, or let their insurance cancel through some error, then you are back on the hook and if the claim is large enough, then there goes your company. Also, if you do work not associated with that contractor then you are back to going bare. Secondly, most general contractors add a large premium to the rate that they are charged to carry you on their policy so you will probably find you are paying more than you should to be covered this way.

In almost every case, it is a better choice for small, artisan construction companies to purchase their own workers compensation insurance policy directly. The risks associated with going bare, or riding on the general contractor’s coat tails are just too high.

At Clinard Insurance Group in Winston Salem, NC, we specialize in helping small artisan contractors of all types with their insurance needs. We have special insurance programs designed for carpenters, carpet cleaners, concrete and masonry construction, electricians, flooring installation companies, grading and excavating contractors, guttering and siding installation companies, HVAC companies, landscapers and lawn maintenance companies, painters and plumbers. We work hard to help all of our clients become informed insurance buyers. If we can help you with your business insurance needs, please call us, toll free, at 877-687-7557 or visit us online at www.TheContractorsHelper.com.

Every plumber worth his salt knows that the busiest repair days out there are the holidays.  Thanksgiving Day, Christmas and the 4^th of July.  Too many people sharing a house and flushing the same toilet over and over again can stress household plumbing systems to the breaking point.  But only the savviest plumbers out there understand that this is a chance to increase their business for the rest of the year.  Here’s a tip on how to turn these overworked holidays into big bucks for you all year around.

Let’s face it, most homeowners don’t really have a go to plumber until they have a plumbing emergency.  Then they call a friend or go looking.  If the plumber that they find does a good job for them, well they have your card and your number and they never need to hunt down a plumber again.  They have you.  But if you miss that opportunity, then you will never get a shot at their business.  So how do you use that information and the insider knowledge you have about the busiest plumbing days of the year to your advantage?  Here’s how.

First of all, understand that very few people look in the yellow pages any more.  They just go to google.  Now you can work hard all year around to build up your ranking on google but there are two problems with that approach.  First of all, search engine optimization isn’t geographically specific.  Second of all, it is hard and takes a long time.  But there is a way to get to the top of the search engine world immediately.  That is called pay per click advertising.  And with your knowledge of just when people will need you, you can bid high on just those days.   You can set up your pay per click, called ppc, account so that you bid very high only on the days that people will be looking and desperate.  You can also limit who will see your ad to the geographic territory in which you are willing to operate on the holiday. This will put you at the top of the list for the search terms you think are most likely to be used, such as: plumber Raleigh, N.C., or other terms you deem to be most likely to be searched.  Also, always put your phone number in the ppc ad.  Some people will click through to your site but if you have an ad that tells them you are available on holidays and just call this number, then you can save the click through cost of the ad because some percentage of searchers will just pick up the phone and call you.

Now you are buying the business here just a bit, but you will be able to charge them holiday rates.   Let’s face it if you have 25 people in your house and a plumbing leak that is shutting down the party, you don’t care what the plumber charges, you need a solution and fast.  Also, if you handle this correctly, you will have made a client for life.  And they will have other plumbing repair needs in the future.

Now, last of all, if you have to pay your employees time and a half, or double time to work on holidays, then you need to know one last trick to save you money.  Your NC plumbers workers compensation insurance policy does not require you to include the extra holiday pay in the payroll that you declare at audit.  So keep good records on your overtime and holiday pay so you don’t pay to much for your workers compensation or your plumbers liability insurance policies, both of which are rated based on payroll.

At Clinard Insurance Group in Winston Salem, NC, we work hard to help all of our clients become informed insurance consumers.  We also want all of our commercial insurance clients to be successful businesses.  We specialize in the insurance needs of plumbing contractors and work hard to help all of our plumbing company clients become successful.  If we can help you with your plumbing insurance needs, please feel free to call us, toll free, at 877-687-7557 or visit us online at the plumbing insurance headquarters.