Here goes Raoul:

http://www.dvinfo.net/conf/showthrea...threadid=17197

Cheers

Yeah, I keep weird hours.

Well, I got a quote back from the production insurance place. For what state farms wants $200 a year for, this place wants around $860! Damn!

The quotes Josh got are interesting.

The question is how the policies differ. The production insurance folks are "in the business" and so one might assume they have a good idea of the risks they are taking. I wonder about State Farm. One would hate to have a problem and then discover limitations of the coverage.

The difference in price makes one stop and think.

I know what you mean Josh.

I submitted a request for a quote from that company, and with the premium combined with the $1,000 deductible, it's almost more economical to go sans insurance for prosumer gear and if there is a loss just buying new.

-Tim

No shizzle.

One thing I should note is that that quote he gave me covers you internationally, as well. Not a big deal to me, but maybe to some of you.

To me it's obvious: go without insurance. Put the 800 bucks in a separate bank account every year. And be careful with your gear ;-)

New gotcha for California business
 

Starting July 1, the state EDD has started enforcing a law that requires a busness who employs Independent Contractors to obtain disability insurance (SDI) for them. If you do not, the penalty can cause serious damage to your company.

So, if like me, you hire Directors and others on a per-job basis and they are truly Independent Contractors, you now have to obtain that very expensive insurance.

Or hire everyone through a temp agency and pay the approximately 150% of the salary you would have paid directly.

So, my prices go up once again. Or I go out of state for narrative work at the least and only have to worry about the Director, the Sound person and the Lighting contractor.

They track this by checking the 542 form (one has to report hiring an Independet Contractor within 20 days of paying them $600 or more per year or agreeing to do so) against the payments for disability insurance.

It is said that the fine can be as much as $10,000 per incident.

Had an opportunity to talk with the local State Senator about this surprise. He knew nothing about it even though he heads up the Finance Committee.

So write your state rep and tell him/her you want that off the books yesterday.

I claim no mastery over the various in's and outs of independent contracting, but I was under the impression that an independent contractor was supposed to cover him/herself and in return gets the freedom of naming their own wage and how many hours/jobs they intend to work.

I must say this is a serious set-back for independent contractors and employers alike -- like you said, time to take jobs out of new socialist California. If this stuff keeps up I will just send my paycheck to the state government and let them send back what they think I need.

If anyone lives in California who reads this take Mikes advice and write the state reps.

Gee, I wonder why the others are not saying anything about this stupid contradiction. Do they agree with it, or are they saying "screw California" under their breath?

I dont' live in California, but now that we have idiots running the show on both sides of the aisle, with all types of money interests playing puppet masters, this thing might spread.

Here's what I just wrote my state Senator
 

Dear Senator Chesbro,

Thanks for spending time with us at the Vallejo Rotary club last week.

I an very concerned about the requirement that a business has to provide insurance for the Independent Contractors they hire. That is outrageous and I want it removed from California law as soon as possible.

As a small businessman, a video production company, I have to hire directors, camerapersons, sound persons and lighting experts on a per-job basis. These people make their living hiring their company's services to companies like mine.

The effect of this insurance law is to increase by 50% the amount of money I have to charge my clients for their work.

As I've already found out, to nobody's surprise, the price increase is not accepted gracefully.

I feel the state overburdens the small business and this is just the frosting on the cake.

I could make more money by moving out of state and accepting lower prices for my work.

Certainly, until I determine if at least this law will be modified or repealed I will be forced to send contracts for creative work like 3D graphics, narrative services and script-writing out of state.

We continue to make California a hostile place to do business and I'd like you to do something about it before all we can do is stand around and reminisce how nice it was when California had an industrial base.

Ahh jeez guys, I'm on my way out there next week! What a bummer. Although, while I owned my own theatrical production company here in texas, I carried liability and workers comp on my independent contractors. Basically, I explained to the show owners, that this was for THEIR protection in case they were hurt. I still sold shows.

Still, it's a pain in the neck.

Re: New gotcha for California business
 

<<<-- Originally posted by Mike Rehmus : Had an opportunity to talk with the local State Senator about this surprise. He knew nothing about it even though he heads up the Finance Committee.-->>>

Maybe it's just me but I'd be as concerned about this as the new insurance requirement. Did you ask him why he isn't doing his job?

Dennis Vogel

I don't think any one person can be aware of all of the legislation and laws in California.

this is very interesting thread, the only way to fight this legislation is through the courts, prove its un-justifiable...i bet your senator is in bed with the insurance companies, as this is the least friendly small business law i have seen in a long time...

the only thought i have is does this law apply to all california business or all business doing business in california? maybe setting up nevada certificate might help...