What does Payroll Limitation mean? Read on to discover the definition & meaning of the term Payroll Limitation - to help you better understand the language used in insurance policies.
A limitation on the amount of payroll for certain classifications used for the development of premium. In workers compensation insurance, payroll limitations typically apply only to sole proprietors, executive officers, partners, and certain noted classifications. In general liability, payroll limitations typically apply to executive officers, sole proprietors, and partners. The limitation varies by state.
We hope the you have a better understanding of the meaning of Payroll Limitation.