Archive for the ‘Tow Truck & Repossession Industry’ Category

More HR Solutions for Florida Tow Truck & Repo Companies

August 29th, 2012

Last week we took a then and now look at the Florida tow truck and repossession industry and how trends surrounding workers compensation insurance have affected Florida drivers.

While high-risk workers compensation insurance options may be the most attractive options drawing the business owner in to a PEO solution, PEOs come with many other aspects of added value!

Did you know that PEOs offer:

  • A way for tow truck and repossession company owners to save money: Not only will you save money on work comp, but you’ll also save on  services that help you employ the best employees: background checks, motor vehicle records, drug testing, and safety training. These services  support best practices and reduce turnover.  Wholesale access to these services, automation, compliance expertise and streamlined processes of PEOs all add up to huge savings!
  • Improved productivity and profitability: Does your company struggle to keep track of per diems, miles, hours and/or job distribution per agent?  Specialized technology streamlines payroll, benefits and managing personnel data. Professionally written employee handbooks and policies(surrounding safety as well) translate into clear expectations and peak performance.
  • More time to focus on your fleet’s growth: With payroll, worker’s comp claims, benefits and employee management under control you can
    finally put your growth plans in motion. You worry about keeping your trucks maintained and on the road, and your PEO partner will worry about all the administrative busy work.
  • Streamlined payroll and claims processing: Your shop employees and your agents/drivers will appreciate on-time and accurate payroll with online access to paystubs, w-2s and employee policies provided through improvements in expertise and technology.
  • More robust benefits: If you choose to take advantage of them, you and your drivers will gain cost efficient access to Fortune 500 quality group health insurance plans plus previously unavailable benefits such as 401(k), Section 125 plan and Flexible Spending!

Want to learn more about PEO solutions, programs and pricing? Give us a call today at 877-636-9525 or contact us online.  You can secure work comp coverage and great HR Solutions, but more importantly secure peace of mind when it comes to owning and operating your tow truck and/or repossession company!

Work Comp for Florida Tow Truck & Repossession Companies

August 22nd, 2012

This week we’re taking a “then and now” look at the Florida tow truck and repossession industry and how trends surrounding workers compensation insurance have affected Florida drivers.


Tow truck and repossession companies have always fallen within the Florida work comp class code of “7219.” What does this mean? Your business has been identified as “high risk,” and more often than not comes with high workers compensation insurance rates.

Historically, many tow truck and repossession companies have not carried work comp insurance for their drivers (recover agents) because their drivers are 1099 independent contractors. Companies with fewer than 4 employees in the state of Florida that are non-construction are not required to carry work comp. However, these drivers may be classified erroneously and the penalties for misclassification can be harsh to say the least.

It is estimated that in 2009 misclassification cost the government 2.7 billion in underpaid federal taxes, workers comp and unemployment insurance and it is estimated that up to 30% of companies may still be incorrectly misclassifying workers as independent contractors rather than employees.


There have been some industry changes and trends surrounding workers compensation insurance. While many repossession companies and towing companies may not have carried work comp in the past, many must now provide proof of coverage per the contract requirements when competing for major (and lucrative) contracts with companies such as automobile and recreational vehicle financiers.

Where does this leave you, as the owner of a repossession or towing company? The Florida manual rate is high – 9.14%, and on top of that, many traditional
carriers in Florida are shying away from approving the code 7219 because it is loosely defined as “automobile towing” whereas repossession often involves
additional job related hazards.


YES. High-risk workers comp class codes don’t have to injure your bottom line. With PEO Advantage, owners of repossession companies and towing companies are lowering their cost of workers comp insurance and re-claiming their profits. PEO Advantage can secure work comp coverage for code 7219 (INCLUDING repossession) below 8.0%.

Here are our program requirements:

  • No previous coverage = no problem
  • Current policy being non-renewed = no problem
  • Must prove favorable claim history
  • No minimum premium
  • No minimum # of employees
  • Drivers must be covered as w-2 employees

Program benefits:

  • Includes payroll and tax administration.
  • Workers Comp Certificate of Insurance (proof of coverage in under 72hrs – if approved)
  • Workers Comp premium is calculated and invoiced on a pay as you go basis. You only pay premium based on the wages paid during each pay period
  • No workers comp annual audit
  • Includes access to a Human Resources professional
  • Includes access to discounted employee benefits

If it sounds too good to be true, just give us a call at 877-636-9525 or contact us online today. Secure work comp coverage, secure peace of mind, and go win that bid!