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:
- 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.)