What is considered payroll/remuneration?

Premiums for professional liability (E&O) insurance are based on payroll, which is defined as total remuneration for services performed by an employee. In most states, remuneration means money or substitutes for money, including:

  • Wages/salaries
  • Bonuses
  • Commissions
  • Overtime
  • Vacation, sick, and/or holiday pay
  • Tax-deferred payments (cafeteria or 401(k) plans)
  • Rental value of an apartment or house furnished by the employer
  • Car or tool allowances
  • Any other substitutes for wages (such as store certificates, merchandise, etc.)
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