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JaLynda, it sounds like you meant the rate at which you bill your customers for your contract labor, not the rate that you pay. That should not be correct. The GL rate should be a fixed rate per $100 of payroll for field job classifications only. Many carriers can and will offer the option of Revenue-based GL premiums as well.

Yes, We use temp labor as part of our field staff. During the 2013 insurance audit, the auditor added the total cost (billing based on invoices paid) for temp labor used during the year. We had included a nominal amount for exposure during the policy year not realizing (paying attention to) the increase in usage - well we had quite an additional premium for the 2013 year. 2014 was a much better audit - actual exposures were closer to projected exposures and actually received a slight return of premium (refund) for 2014. I switched the monthly allocation to a self-accessed program - calculating the premium on a monthly basis. So even if the policy exposure limits were exceeded I was allocating the cost in the proper year not the next year when the audit took place. So in any given year there could be a cash outlay for additional premiums but the budget should survive.