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:

• Wages/salaries
• Bonuses
• Commissions
• Overtime
• 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.)