Do the premiums for general contractor’s liability insurance get calculated based on sub-contractor payments?

The premiums for a general contractor's liability insurance policy may be calculated based on the payments made to sub-contractors, but it depends on the insurance company and the terms of the policy. In general, liability insurance premiums for general contractors are determined based on a number of factors, including the size and type of the business, the nature of the work being performed, the location of the business, and the level of risk associated with the business operations. The insurance company will typically perform an assessment of the business and its risk factors to determine the premium for the policy. In some cases, the payments made to sub-contractors may be considered as part of the premium calculation, especially if the sub-contractors are performing work that is covered by the liability policy. For example, if a general contractor hires a sub-contractor to perform electrical work on a job site, and the sub-contractor is covered under the general contractor's liability policy, the payments made to the sub-contractor may be factored into the premium calculation. However, in other cases, the insurance company may consider the sub-contractor's liability insurance coverage separately from the general contractor's policy. This is especially true if the sub-contractor has their own liability insurance policy, which would provide coverage for any damages or injuries caused by their work. Ultimately, the way that premiums are calculated for a general contractor's liability insurance policy will depend on the specific terms of the policy and the practices of the insurance company providing the coverage. It's important for general contractors to review their policy carefully and ask their insurance provider any questions they have about how their premiums are calculated.