Contractors Policy: Gross Receipts vs Payroll

Jun 14, 2018 at 6:47 AM

  1. Ajax77
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    Ajax77 New Member

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    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.
     
  2. AZDave
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    AZDave Guru

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    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
     
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  3. Markthebroker
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    Markthebroker Guru

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    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
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    adjusterjack Guru

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    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
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    Kevin Pitts New Member

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    Find a reputable CGL wholesaler.. At the cost of commission.. They will rate on receipts.. also streamlines the audit process.
     
  6. indienoise
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    indienoise Guru

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    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...
     
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