Premium Audit Resource Center
Simple guidance to help you prepare for your workers’ compensation and general liability premium audits.
You don’t need to be an audit expert to get through this process smoothly. Our premium audit preparation resources provide the workers compensation audit help and general liability audit help you need to navigate every step with confidence.
01
Organize Records
Gather your payroll summaries and gross earnings reports for the policy period. Having these ready prevents backtracking during the review.
04
Prepare Taxes
Have your 941s and state unemployment forms ready. These documents help auditors reconcile your internal payroll with official filings.
A few simple steps can make your premium audit preparation faster and less stressful. Follow this checklist to ensure your audit process is accurate and efficient.
How to Prepare for Your Premium Audit
02
Verify Duties
Ensure each employee is classified by their actual day-to-day job duties, as this is the primary factor in determining your workers compensation audit help needs.
05
Audit Meeting
Set aside time to meet with the auditor. A focused window ensures questions are answered clearly and the audit concludes without delay.
03
Collect Certificates
Gather Certificates of Insurance for all subcontractors to prove they have their own coverage, which is vital for general liability audit help.
Documents You’ll Need for Your Audit
Having your records organized and ready for review is the most effective way to ensure a smooth audit process and avoid unnecessary delays. Premium audit preparation starts with gathering the following essential records.
Payroll Records
- Detailed payroll journals or registers for the audit period.
- Breakdown of gross pay, overtime, and bonuses by employee.
Tax Forms
- Federal tax returns, specifically Forms 941, 1120, or 1065.
- State unemployment tax reports (SUTA) for each quarter.
Certificates of Insurance (COIs)
- Certificates for all subcontractors used during the policy term.
- Evidence of valid workers’ compensation and general liability coverage.
General Ledger & Financial Reports
- General ledger and cash disbursement journals.
- Gross sales summaries to support general liability audit help requirements.
Subcontractor Records
- Summary list of all subcontractors with total payments per vendor.
- Contracts or 1099 records for non-insured contractors.
Common Audit Mistakes That Can Increase Your Premium
Avoid these frequent errors to ensure your premium reflects your actual risk and to prevent unexpected costs during the reconciliation process.
Misclassified Employees
Incorrectly labeling workers can lead to higher rates based on higher-risk categories. Proper classification is essential for an accurate premium.
Missing Certificates of Insurance
Failing to collect COIs from subcontractors means you may be charged for their coverage, significantly increasing your total audit exposure.
Incomplete Payroll Records
Poorly organized or missing data can result in the auditor using estimates that aren't in your favor, often leading to overpayment.
Not Responding on Time
Delays can trigger non-compliance surcharges or estimated audits with maximum rates, making the process much more expensive.
Undocumented Wage Exclusions
Failing to separate overtime pay or other excludable wages often results in paying premium on funds that should be exempt.
Incorrect Officer Status
Not clearly defining the inclusion or exclusion of executive officers can lead to payroll errors that skew the final audit results.
Workers’ Compensation vs. General Liability Audits
While both processes involve a careful review of your business records, workers’ compensation and general liability audits focus on distinct areas of risk and exposure for your policy.
Workers’ Compensation Audits
- Primary Focus: Verification of payroll and employee classification codes to ensure premium matches job risk.
- Common Data Used: Gross payroll records, individual employee job descriptions, 941 forms, and officer exclusion status.
- Critical Preparation: Ensure all employees are assigned to the correct class codes based on their actual daily operations to prevent overpayment.
General Liability Audits
- Primary Focus: Measuring the size of your business exposure, usually based on gross sales or subcontractor costs.
- Common Data Used: Profit & Loss statements, general ledgers, sales tax returns, and subcontractor certificates of insurance (COIs).
- Critical Preparation: Maintain organized subcontractor certificates of insurance to avoid being charged additional premium for their exposures.
Premium Audit FAQs
When is the best time to start my premium audit preparation?
It is best to start organizing your records as soon as you receive your audit notice. Early premium audit preparation ensures you have all payroll and tax documents ready, leading to a much faster and less stressful experience.
What happens if my records are incomplete or missing?
If records are missing, auditors may be required to apply estimated exposures or higher-rated classifications, which could increase your premium. We recommend providing the most detailed records possible to ensure a fair and accurate result.
How long does the actual audit process take?
A typical virtual audit lasts between 30 and 60 minutes once your documents are submitted. On-site audits may take longer depending on the complexity of your business. Having organized data is the key to a quick turnaround.
Who should I contact if I need workers’ compensation audit help?
You should reach out to your assigned auditor for specific case questions. For general inquiries or technical support, our team is available at Service@AcceleratePremiumAudit.com to provide the guidance you need.
What if I disagree with the findings of my general liability audit?
If you disagree with an audit result, you have the right to dispute the findings. Contact your insurance carrier or agent to initiate a formal review. Providing additional documentation to support your position will help resolve the discrepancy quickly.
Will I receive a copy of the final report?
Yes, once the audit is finalized and reviewed for quality check, the report is sent to the insurance carrier. You can typically request a copy of the final summary directly from your carrier or your insurance agent for your records.
Need Help With Your Audit?
Our team is here to provide the workers’ compensation audit help and general liability audit help you need to ensure a smooth process. Reach out today for guidance on your premium audit preparation.