Worker抯 Compensation Insurance for construction-related framing contractors has always been expensive. Danny Harter, owner of DH Framing already knew that much because he faithfully carried this insurance in order to work in legal compliance with State insurance requirements. But what Danny wasn抰 expecting to be suddenly cancelled by his Worker抯 Compensation Insurance carrier happened in November, 2004 all because 搊ut of the blue, his insurance carrier simply decided that his company was 搕oo small for their interest. Danny had two employees, including himself, and a weekly payroll between $1,500 and $2,000.00.
Danny was notified of his cancelled workers comp policy when the client he was busily working for one morning, came up to him and said, 揧ou can抰 work on this job I抳e got a notice here that you don抰 have valid Worker抯 Comp Certificates with your insurance carrier anymore. How embarrassing!
Danny obviously lost time on the job, and income. But he did what he needed to do, and immediately started contacting insurance carriers, trying to find someone who would not consider him 搕oo small, or otherwise, undesirable. After all, he was and still is a successful, hard-working small businessman. Shouldn抰 someone be interested in writing his business?
To no avail, Danny could not find an insurance carrier that would underwrite his business. Fortunately, he contacted an insurance agent who just happened to know about the Worker抯 Comp Co-Op. 揅all these guys, the insurance agent said. And Danny did. I picked up the phone and talked to Danny about his business, and what happened to him.
Within one week, Danny and his employee were not only back on the job with the client who had to stop his work he also had payroll services and worker抯 comp insurance coverage without those big deposits you have to put down with traditional insurance agents. So Danny saved not only saved his business. He saved additional, unnecessary hours weeks of downtime on the job, and those huge upfront fees.