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Workman's Comp

Discussion in 'Picture Framing Business Issues' started by bruce papier, Sep 13, 2017.

  1. bruce papier

    bruce papier CGF II, Certified Grumble Framer Level 2

    I just got done writing a $3400 check to Selective for workman's comp. They explained to me it costs that much because we use power tools. The saw was the major factor, but even the power drills we use to drive screws figured in. Use of power tools puts us (at least according to them) in the same category as a light industrial company. Does anyone use an insurance company that defines the risks for picture framers more accurately than that. If so, what kind of rate are you getting?
     
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  2. wpfay

    wpfay Angry Badger

    There are a number of framing related businesses that get their W/C insurance with Meadowbrook through their PPFA membership. The company that manages it often gives back dividends on the premiums, and there are stories of significant savings. One of the consistent comments is that the savings is greater than the cost of membership in PPFA. It would not help me in Florida, because the rates here are controlled entirely by the state. If I remember correctly David Waldmann and Rob Markoff are a couple of the Grumblers that can speak from experience to this program.
    You might also do a search in the Grumble archives, since I know this subject has been the topic of conversation fairly often.
    Here's a link from a post Rob Markoff made on an insurance question:
    http://www.wcpolicy.com/ppfa/
     
    Last edited: Sep 13, 2017
  3. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    Rates are set by state and will vary. AFAIK insurance companies have to all use the state established rate, although they do have some leeway for discounting. Also, depending on your payroll size you may have an "Experience Modification" that will be applied as a multiplier based on your actual claims versus expected claims. Most of these factors are pretty well set in stone and there is little to nothing you can do about them.

    However one thing that can make a big difference is having the right Classification for each work area. People who work only in lower risk areas can be classified at the lower class. Here are some classes I found doing a quick search:
    • 2881 Picture Frame Assembling—No Manufacturing or Parts (National)
    • 8017 Picture Framing—Custom & Drivers (Texas)
    • 2840 Picture or Artwork Framing--including frame assembly
    I believe Rob Markoff had something to do with establishing one of those picture frame specific classes, you might want to contact him for specifics, or ask him to view and comment on this thread.

    If you are large enough that you have retail sales counter and/or office staff that never do any cutting/assembly they can be classified as clerical or retail, both considerably less expensive than framers. In our business clerical runs 5-10% of the amount of our shop workers.

    Lastly, the PPFA has arranged a dividend program with a couple different carriers for prop/liability and WC. We just got our dividend check for our WC last week, it was 11% this year, 12% last year as I recall.

    http://www.wcpolicy.com/ppfa/
    Can't find a link for the prop/liab (we don't use the PPFA for prop/liab, but a different program also with a dividend) You may be able to get info by emailing info at ppfa dut com
     
  4. wpfay

    wpfay Angry Badger

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