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Old 03-06-2002, 09:11 PM
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heygrassman heygrassman is offline
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Join Date: Jan 2002
Location: Columbus, Ohio
Posts: 509
What does General Liability have to do with payroll hours? Are they basing the likleyhood of an accident occuring on the number of employees that are working and the respective number of hours? This makes no sense to me what so ever but I am a little groggy 2nite..

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Old 03-06-2002, 11:21 PM
LawnLad LawnLad is offline
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Join Date: Jan 2002
Location: Cleveland, Ohio
Posts: 738
Machines don't cause accidents, people do. GL coverage is for covering the risk of people's behavior/actions on the job. I believe since the underwriters have to be able to have a formula of some sort to evaluate risk, they make a relationship with a number that is on a continuum they can predict or relate to. If your payroll expense goes up from one year to the next- you most likely have more employees out there working, therefore there is an increased risk since logically you'd have more people out there to potentially cause accidents. So your premiums go up accordingly.
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Cleveland, Ohio
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Old 03-06-2002, 11:41 PM
John DiMartino John DiMartino is offline
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Join Date: Jan 2000
Location: Walden,NY
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We just had one too, this yr for the first time in 3 yrs.It didnt take long,and to get accurate insurance prices it must be done.Invasive or not,if they are backing us,they need to know how much we do,to price our coverage as competitive as possible.
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Old 03-13-2002, 11:50 AM
lawnboy53 lawnboy53 is offline
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Join Date: Jan 2001
Location: Neb
Posts: 69
I have an audit every year myself.
Part one is to determine the workmans comp, and I have no argument on that one.
Part 2 is to determine your General Liability rates. This one I have concerns about. They base my premiums off of revenues. I understand this method to a point but if I were to raise all my prices 20% my insurance would go up and the Insurance company would have had no additional exposure.
With this said I'm fairly happy with my rates so I wont rock the boat to much right now.
Craig O'Connor
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Old 03-14-2002, 04:28 AM
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Join Date: May 2001
Location: St. Louis, Missouri Gateway to the west
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Also if you use the lawn care percent and the scaping percent you could get nailed on that also.

But as lawnlad, and rodfather said I do the same, fill out reg pay payroll dollars and done.
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Old 03-14-2002, 05:43 AM
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65hoss 65hoss is offline
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Join Date: Sep 2000
Location: Memphis, TN
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I get a phone audit on my GL in the spring. I would NOT open my books up to these people. Period. Not to hid anything, but its not his damn business to be into all that. This is generally based off total sales. If they want to see something, print out a copy of your financial statements in a simple format. That would be ALL they would get from me. There is NO WAY I would open my checkbook up for anyone. As a small business and a solo operator that you are, this is none of his business.
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Old 03-14-2002, 09:16 AM
John Allin John Allin is offline
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Join Date: Sep 2000
Location: Erie, PA
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I agree.
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Old 03-14-2002, 10:56 AM
site site is offline
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Join Date: Oct 2000
Location: Stratham,NH
Posts: 168
One thing to get in order before you get audited is to get a certificate of insurance from any subcontractor you use. The auditor wont make a big deal about it if you dont have them, but they can and will consider every $ you pay these subs as YOUR payroll. That means you will be paying workers comp ins. for any sub without a certificate.
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