Information for Contractors
Provides protection against non automobile liability claims other than employee injuries.
Covers medical costs and partial wage loss to employee suffering a job related injury.
Liability Premium Basis
Liability Policy premiums are based on your payroll. The company uses an arbitrary payroll for owners and partners (usually $18,300) and the actual payroll for all employees. Overtime is based on what actual pay without overtime would have been. Some companies cap the payroll of highly paid employees. Liability policies are audited.
Workers Compensation Premium Basis
Workers Compensation premiums are based on payroll. Owners can choose to include themselves which creates additional premium, or exclude themselves which means that they are not covered if they are injured on the job. Overtime pay is calculated based on what actual pay without overtime would have been. Workers Compensation policies are audited.
30 to 90 days after a policy’s expiration date, a company employee will contact you to perform an audit. An audit consists of comparing the actual payroll to the payroll estimated at the beginning of the policy year. If the actual payroll is higher than the original estimate, you will owe more money. If the payroll is lower than the original estimate, you should receive a refund.
Certificate of Insurance
An insurance certificate is what we send people you work for to prove you have insurance. We must get there name, address, and fax number of anyone you want us to send a certificate to. Certificates require us to send notice to certificate holders if your policy expires due to non-payment. We like to fax certificates so we have proof in your file that it was received. This can be important to you because sometimes General Contractors will withhold payment if they have not received a certificate.
Someone may request to be added to your policy as an additional insured. This means that your policy will defend them if they are named in a suit because of your actions. Insurance companies usually charge $25 to $100 to add an additional insured to your policy. You should always check with us prior to signing a contract which requires you to add an additional insured because in some cases companies are not willing to add additional insureds.
Waiver of Subrogation
A waiver of subrogation is an insurance company giving up its right to collect reimbursement from other negligent parties on claims that it has paid on your behalf. Companies generally charge for adding waivers. You should always check with us prior to signing a contract which requires you to add a waiver because in some cases insurance companies are not willing to add a waiver of subrogation.