I am trying to learn the ins and out of the GL part of this business. I just had an insurance agent tell me that I will pay based on ALL the money I pay out. That includes x amount for materials. I understand that I will pay based on the 100s of dollars I pay out. He says that if I pay 10k for material and 10k for labor that I will pay 20k worth of GL premium. I don't get it. I understand paying on the labor but not the material. Is this guy correct?