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Free guide for business owners: Make your next premium audit
a non-event.
Premium audits catch a lot of business owners off guard. Our free guide, The Business Owner’s Guide to Insurance Audits by Kody Houk, walks through how to set a policy up right, what counts as workers’ comp payroll and what to have ready when the auditor arrives.
WHAT’S INSIDE
A surprise-free audit
starts before the policy does.
Most painful audits trace back to how the policy was set up. The guide covers what to check before you bind, what to track during the year and how to prepare when the audit comes.
- Setting up the policy right: verifying class codes, reviewing what goes into workers’ comp wages, and asking about monthly self-audit or pay-as-you-go reporting through your payroll provider.
- When to bring in the carrier: why a visit from the underwriter or company auditor before binding can head off class code disputes.
- What counts as workers’ comp payroll: the items that are typically included, from overtime and bonuses to tool allowances, and the items that are typically excluded.
- Tracking exposure during the year: a simple spreadsheet by line of coverage that shows how much premium you have used as payroll and sales come in.
- Subcontractor agreements: additional insured requirements, matching limits and waivers of subrogation.
- The document checklist: payroll records, federal and state quarterly tax reports, subcontractor expenses and certificates, and leased or temporary labor costs.
General guidance only. Audit rules and payroll definitions vary by state, carrier and policy. Your policy and your carrier’s auditor are the final word.