T or F? WA state makes construction owners insurance claim $17,800 pay not matter what they actually made.?

Question

My insurance company just informed me we owe them money because wa state makes insurance companies claim that each owner of any type of construction company automatically made $17,800 per year whether they made $1 or $100K!!!

That seems outrageous to me since we lost our a$$ only making $5K for the whole year!! Now they are saying we owe them money that I don't have!

Anyone know of a way out of this/loophole or if that is even really true? I am praying that someone made a mistake!

Thanks!

Answer 1

True, there is a "minimum rating salary" for owners.  Because everyone knows, the owner can receive their compensation as bonus, instead of salary, to avoid taxes and such.

This holds true in all states (although the dollar amount varies, by state, but not an awful lot), and can be applied to both general liability and workers compensation policies.

Answer 2

It is true.

At least you're not in Georgia. We charge $24,400 for the owner of the business.