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Growing thriving business at your expense!

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Services for Real Estate Pros with AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr

Have a neighbor up the street who has been growing his Landscape business since he moved in a couple of years ago. He now has 2 Landscape trucks, a brand new porsche, Mercedes and his employees show up every morning, drop off their cars for the day and hop in the trucks. The kicker to this is they do not park any of their trucks at their house and they have the space!

I really don't pay too much attention, but when he started parking one of his Landscape trucks overnight in front of my home, I took a closer look. His business and Ca. Landscape License is right there on his trucks, so I went to the CSLB and checked it out. This guy apparently has no employees! Doesn't have Workers Comp and puts every household they work at, at risk by doing so.

I have blogged before about the importance of checking Contractors before hiring to make sure they are Licensed and have Workers Comp. The reason behind it is your Homeowner, Landlord or Commercial Property Liability Insurance will not cover legal expenses. You can not only be held liable for any injury's to anyone working on your property, but and you also can be held responsible to pay for the Workers Comp for other peoples employees!

The employees working for this guy more than likely have families to support and Landscape Companies have a very high risk for Injury. Loss of hands to wood-chippers, falling, etc. We all pay very high Workers Comp for employees in Ca. A main reason for this is for people who scape the laws that the rest of us have to pay for.

This is such a blatant disregard for Life, Laws and how others can be affected. I was told by the Contractors license board to turn it in to the Dept. of Insurance for WC Fraud. The DOI has a strong stance of employees being used and no security if they are injured to be able to take care of their families.

This is how all insurance works. We all pay for all the uninsured on the roads, loss of Property and in business.

Realtors often help buyers and sellers hire contractors. I would always add a disclaimer for your own E&O to be sure the Owner checks licensing and Workers Comp for anyone working on their property.

* check for Licenses and Workers Comp on anyone who is hired to work on your property. 

 

  

Comments(4)

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Karel Rogers
Real Estate Staging Unlimited - Reno, NV
That's why neighborhoods are made for people not businesses. In every county there are officers that are assigned to site and remove these businesses from neighborhoods and you will be kept anonymous.  Just call your local planning department and they will direct you to that person.
Jan 26, 2008 12:56 AM
Terri Habecker
AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr - Dana Point, CA
Life Matters & So Does Your Insurance Co

Thanks Karl, I have. The neighbor knows I have called. I'm not really an anonymous kind of person. As a Realtor, times are tough as it is, let alone trying to sell a home that's in the middle of a Truck Lot and employee cars left on the street. 

I was out taking pictures of the employees arriving with ice chests loading into the trucks. I was easy to spot. It is hard for Code enforcement to catch these guys in the act, but with Digital and dated pics, it was easy. Dana Point is a small community with a strong sense of pride.

All of the neighbors have a very good relationship on our street.  These folks bragged that they met in drug rehab when they moved in. Not the best way to introduce yourself to families...A Big reason I decided to not go and speak to them directly.

We have a great neighborhood and want to keep it that way. They bought the overpriced house in 9/05 and remodeled (without ANY permits of course) we thought they would just move, but alas the housing slump and looks like we are stuck with them for awhile. So, I think it's time they get with the program.

Jan 26, 2008 01:39 AM
Chris Pollinger
Berman & Pollinger, LLC. - San Diego, CA
Consulting for Luxury Teams and Brokerages
Great post with the reminder of the importance of having adequate coverage.  For example - most agents don't even know the details of their E&O policy (or if it's truly and E&O policy).
Jan 26, 2008 02:46 AM
Terri Habecker
AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr - Dana Point, CA
Life Matters & So Does Your Insurance Co

Hi Chris, thank you for your comment. I was lucky and able to make choices on my E&O coverage. My employees are covered and the aggregate limits cover commercial exposure too. E&O does not come cheap. It's running $312.00 a month for me as an Insurance Agent.

General Liability coverage does not usually cover written contracts. Where E&O would come in. Your Broker would have a copy of your Companies GL Policy.  Many different Insurance Companies have different coverages and exclusions. Wise to check. All Insurance Agents have sample policy's available for review. The coverages are just as important as the Value.

Jan 26, 2008 03:08 AM