INSURANCE TRICK #1Many tree services will show you worthless certificates of insurance. Here is how it works. A tree service can buy a workers compensation policy for the tiny amount of $850 per year (we pay Tens of Thousands of Dollars per year and all of our workers are covered.) Then they have a piece of paper showing their company name and showing they are insured. NOT! Why not because the owner has waived coverage on himself and he/she then claims no employees. Then they pay the workers cash. So their is no payroll trail. No social security numbers linking the worker to the company. So they don’t pay the insurance company for them to be covered yet they are climbing and cutting down trees on your property. Look at the following information copied from the State Board of Compensation website. Link provided below
FAQ 5) Can officers waive coverage on themselves?
A: Yes. As many as five officers may waive coverage on themselves. Each such officer must complete and sign a form WC-10 and file it with their insurance carrier.