Contractors Policy: Gross Receipts vs Payroll

[Ajax77]

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.

 

[AZDave]

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

 

[Markthebroker]

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.

 

[adjusterjack]

Does anyone know of any company insuring contractors with gross receipts being the basis of premium?

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.

 

[Kevin Pitts]

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

 

[indienoise]

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...

 

[rbadoux]

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.

 

[Ajax77]

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.

 

[seb5277]

I was looking for good contractors in my area (New York) any advise? I recently moved into this new apartment and in general it's very nice but it does need some TLC. The most work is probably needed in the bathroom (there's mold and shitty plumbing all over the place) so I am in desperate need of some good bathroom remodel contractors. I've seen some options online (I'll leave the one I liked the most below) but they all seem kind of meh to be honest. Not because they do bad work but just because the designs they did were not up my alley. So any advise from people of the area would be really appreciated

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You can check it here: https://www.contractorstoday.com/bathroom-remodel-contractors-near-me/

 

[Vendrick]

I know this kind of employer. It would be best if you were careful as an employer not to be penalized if IRS finds out. I generally avoid as much as I can not reporting on time the payroll to the necessary department. I was once fined over $3000 for not being careful enough and having my report sent a few days late. I was really pissed off and decided to get a tax accountant like Global Accountant Network that would make sure this would never happen again. I find such a service a must for small business owners.