The cars are only used Monday through Friday, between 8:00 a.m. and 5:00 p.m. and only driven between customers’ homes.
The cars are left at the office (according to your company policy).
The cars typically go to 4 houses per day and spend most of their time parked.
The cars are rarely parked on the street. The value of the car will have a determining factor in the cost of insurance. Cars should be basic: automatic transmission, air conditioning, and a radio. Different deductible amounts for comprehensive and collision coverage will affect the cost of premiums. When comparing auto insurance quotes make sure that the Property Damage and Bodily Injury coverage and deductibles are consistent from quote to quote. Although Workers Compensation and Employer’s Liability Insurance is mandated in most (not all) states, it is a required coverage for every MOLLY MAID business, even if not a state mandate. It is a no-fault agreement between the employee and employer. The employee gives up the right to sue the employer for lost work time and medical costs. The employer gives up the right to claim there was contributory negligence on the part of the employee in work-related illness or injury. Statutorily required workers’ compensation insurance and employer’s liability insurance shall be maintained with limits of at least $500,000 by accident, $500,000 by disease and $500,000 policy limit. In “Monopolistic States”, such as Ohio, North Dakota, Washington, Wyoming and West Virginia “Stop Gap” coverage must be purchased separately or added to the CGL policy. “Stop Gap” in Ohio must not contain exclusion with the "substantially certain to occur" language. Workers Compensation and Employers Liability is required. Premiums for this type of insurance are based upon: An estimated payroll from a realistic financial projection. They are quoted as a rate per $100 payroll. For example, if you estimate your payroll total for a year to be $100,000 and your Worker’s Compensation rate is $6.00/$100 payroll, your cost would be $6 x 1,000 or $6,000. It is important not to understate the payroll. If you do, you will receive a large assessment at the end of the year. Likewise, it is important not to overstate the payroll. This results in a cash drain. Policies are audited every year, usually by letter. If they are done in person, you will need to provide 941’s, W-3 form or other payroll records. Classification - Usually the classification is “Inside Residential House Cleaning” and the code is 0917. This may vary in some areas. In California, it is classified as 9096 (Residential Cleaning) and NOT 9008 (Janitorial). A PEO, Professional Employer Organization, should be able to help with the appropriate classification. It is important that your agent be aware that, even though the Workers Compensation Insurance
MOLLY MAID Right Start Manual Copyright 2015, Molly Maid, Inc.
Page 13
Proprietary and Confidential Information
Made with FlippingBook - professional solution for displaying marketing and sales documents online