How is general liability insurance computed on a payroll?

General liability insurance, which protects you in case of lawsuit against your business or property, is in part calculated based on your payroll. Payroll is one measure of your exposure to risk--the more people you employ, the more likely you are to face a claim. General liability and workers' compensation are two examples of insurance policies that are more expensive for companies with higher payrolls. The calculation simply boils down to how likely you are to make a claim, and companies with a high payroll are more likely to make a claim than those with a low payroll.

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