Is contractor's nonspecific liability insurance available for hours worked a bit than wages rewarded?
We are a small general contracting firm contained by West Virginia and have an opportunity to make a long-term contract with a governmental agency which will require us to income prevailing wage rates; approximately 20% higher than our middle-of-the-road wage rates. Is there a nonspecific liability company or is coverage available based upon hours worked or type of work perform, rather than wages compensated? Our current coverage is based upon payroll and will thieve a substantial jump within premium with this contract. I realize that we could adjust our premium, but this contract prompted the sound out about hours worked.
Companies rate contractors differently. There are pretty standard "class codes", or definition of the commission you perform. These hold ratings related to them. Most companies base their premiums on what your payroll is. There may be a few that will appropriate gross sales using a different rate. I enjoy never heard of a company using hours.
Sit down near your agent and ask about option. Be prepared to submit the higher payroll. We are a small broad contracting firm in West Virginia and enjoy an opportunity to perform a long-term contract near a governmental agency which will require us to pay prevailing wage rates; approximately 20% greater than our normal wage rates. Is in attendance a general liability company or is coverage available base upon hours worked or type of work performed, a bit than wages paid? Our current coverage is base upon payroll and will take a substantial bounce in premium near this contract. I realize that we could adjust our premium, but this contract prompted the question going on for hours worked.
No... Most insurers do not offer insurance by the hour.
A rule entity would not accept hourly insurance as reasonable coverage anyways. Even if you did find such a policy. The construct of the policy, ( Hourly ) would disqualify you from bidding on the government contract.
Government contracts are awarded base on many criteria, one of which is your size to perform the services contracted in the terms offered.
Failure to provide the proper liability insurance demonstrates an inability to act the job.
Good luck
Answers: They're ALL base on payroll. OR, the amount subcontracted, which is labor plus materials.
You can't do it based on hours worked.
BUT. See if there's wrap-around coverage for this project. If here is, you need to save seperated the hours for this project, vs. everything else you do, by employee, because later any gl and workers comp exposures would NOT be counted, at the audit. But ONLY if you keep the files showing exactly how much time John worked on this project, vs. every other project.