Home Improvement Contractor - Licensed Contractors

Is contractor's general liability insurance available for hours worked rather than wages paid?

We are a small general contracting firm in West Virginia and have an opportunity to perform a long-term contract with a governmental agency which will require us to pay prevailing wage rates; approximately 20% higher than our normal wage rates. Is there a general liability company or is coverage available based upon hours worked or type of work performed, rather than wages paid? Our current coverage is based upon payroll and will take a substantial jump in premium with this contract. I realize that we could adjust our premium, but this contract prompted the question about hours worked.

Public Comments

1. They're ALL based 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 there is, you need to keep seperated the hours for this project, vs. everything else you do, by employee, because then any gl and workers comp exposures would NOT be counted, at the audit. But ONLY if you keep the records showing exactly how much time John worked on this project, vs. every other project.
2. Companies rate contractors differently. There are pretty standard "class codes", or definition of the job you perform. These have ratings related to them. Most companies base their premiums on what your payroll is. There may be a few that will take gross sales using a different rate. I have never heard of a company using hours. Sit down with your agent and ask about options. Be prepared to submit the higher payroll.
3. We are a small general contracting firm in West Virginia and have an opportunity to perform a long-term contract with a governmental agency which will require us to pay prevailing wage rates; approximately 20% higher than our normal wage rates. Is there a general liability company or is coverage available based upon hours worked or type of work performed, rather than wages paid? Our current coverage is based upon payroll and will take a substantial jump in premium with this contract. I realize that we could adjust our premium, but this contract prompted the question about hours worked.
4. No... Most insurers do not offer insurance by the hour. A government entity would not accept hourly insurance as acceptable 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 based on many criteria, one of which is your capacity to perform the services contracted within the terms offered. Failure to provide the proper liability insurance demonstrates an inability to perform the job. Good luck