Contractors Policy: Gross Receipts vs Payroll

Jun 14, 2018

  1. Ajax77
    Offline

    Ajax77 New Member

    Posts:
    2
    Likes Received:
    0
    State:
    Georgia
    Does anyone know of any company insuring contractors with gross receipts being the basis of premium? I've searched online and came up empty. I've got a very small subcontractor in mind, no employees and usually no subs himself. He's more of a handyman. Thank you.
     
    Ajax77, Jun 14, 2018
    #1
  2. AZDave
    Offline

    AZDave Guru

    Posts:
    538
    Likes Received:
    14
    State:
    Arizona
    No, but I would suggest checking BTIS for this guy. They have a handyperson class that doesn't require ROC licensing.

    Good Luck, and welcome to the Forum!

    Dave
     
    AZDave, Jun 14, 2018
    #2
  3. Markthebroker
    Offline

    Markthebroker Guru

    Posts:
    423
    Likes Received:
    329
    State:
    California
    Btis is great. I don't know if they will write it, and if they write in the state you need, I assume Georgia, but CBIC is good too.
     
  4. adjusterjack
    Offline

    adjusterjack Guru

    Posts:
    729
    Likes Received:
    175
    State:
    Arizona
    I doubt if you'll find any underwriter willing to rate a small contractor just on gross receipts. Way too easy to fudge gross receipts and hide cash, especially at the handyman level.

    Applying rates to a minimum payroll is a truer measure of the risk and avoids the audit and collection issues usually present at the end of a policy year.
     
  5. Kevin Pitts
    Offline

    Kevin Pitts New Member

    Posts:
    1
    Likes Received:
    1
    State:
    North Carolina
    Find a reputable CGL wholesaler.. At the cost of commission.. They will rate on receipts.. also streamlines the audit process.
     
  6. indienoise
    Offline

    indienoise Guru

    Posts:
    965
    Likes Received:
    23
    State:
    South Carolina
    If you are indeed in Georgia, talk to an agent who writes haulers insurance Co. They don't base premium on receipts, but for a true sole proprietor, no employees artisan you can get a GL for as little as about 300 bucks, you won't get any less than that really, and I assume you are looking for someone to base on receipts because he doesn't do that much and needs a pretty low premium...
     
  7. rbadoux
    Offline

    rbadoux Expert

    Posts:
    70
    Likes Received:
    7
    In California at least... Contractor's Shield, and PCIC does it based on gross sales. The rest is based on payroll. There may be some unique programs that can do gross sales rating, but the 2 mentioned above are the most popular ones.
     
    rbadoux, Jul 23, 2018
    #7
  8. Ajax77
    Offline

    Ajax77 New Member

    Posts:
    2
    Likes Received:
    0
    State:
    Georgia
    Thanks for all your comments. I'll file this info away - I'm in GA and the contractor went with someone else, but good info for the future.
     
    Ajax77, Jul 25, 2018
    #8
Loading...