This insurance ensures compliance with wage regulations by aligning workers’ compensation premiums with actual payroll and prevailing wage requirements. Prevailing wages are standard wage rates set by government agencies for specific types of work, often in public construction projects. This insurance helps businesses adhere to these wage standards while accurately calculating workers’ compensation premiums based on real-time payroll data. It is especially useful for companies involved in government contracts or industries where prevailing wage laws are enforced, providing financial accuracy and regulatory compliance.