Why are some general liability policies rated on area and others on payroll and receipts?Why am I being “charged” so much payroll for my general liability policy?
Different rating methods are used to more accurately reflect the exposure. For example, a restaurants exposure is more accurately defined by using receipts rather than area, because it better determines the volume of customers (exposure) that comes into the restaurant. However, an apartment building is rated by units or number of apartments, and an office…Read more
Sole proprietors and partnerships are rated on a set minimum payroll figure, no matter what you actually make. This figure is established by the National Council of Compensation Insurance and cannot be reduced.Read more