General Contractor

I currently work for a commercial general contractor.  Our GL policy is based on payroll.  My previous experience, both also commercial general contractors, had their GL rated on sales.  Our current agent is advising that building contractors are most appropriately rated using payroll.  I'm looking to find out how other GCs have their GL policy rated, payroll or sales.  Thanks for your help!

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Stephanie Sawyer
Controller


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Good morning Stephanie.  We are in Alabama and our policy is primarily rated on payroll for executive supervision and total costs of residential or commercial buildings (sales) and size of buildings being insured.  Obviously the more exposure (more employees, more space, more jobs sites) the higher the premiums.  

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Renee Hollis
Accounting Manager
Blackstone Construction
Birmingham AL
(205) 623-4939
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Stephanie

i have seen it both ways depending on the carriers methodology.  From an accounting perspective it is easier when it os assigned as a %of payroll then you can burden your payroll to include this.  

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Mary

Mary Davolt, CPA, CCIFP
M +1 (331) 214-0869
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