The insurance audit is a process common to the insurance industry. We perform an audit to ensure you have paid no more than the appropriate premium for your exposure. An accurate audit is a benefit to you and your business and could save you time and money.
An audit is an examination of your operation, records and books of account to discover your actual insurance exposure for a specific period of time coverage was provided. “Exposure” means your payroll, receipts or sales, units, number of employees or contract cost. The audit is done to obtain insurance rating information only.
This information is not used by federal, state or local government to calculate taxes. We intend audit information to be kept confidential.
This is a Self-Audit, data will be entered by a representitive of your company via this website. The information entered will be reviewed by an employee of the independent auditing firm Accu-Audits, Inc. then transmitted to your insureance carrier.
Yes,
if your accountant has payroll and /or sales information. Also contact someone who had knowledge about the owners/officers, the exact job duties of the officers and the employees and a good general knowledge of the operation to answer the questions so that the audit can be done quickly, efficiently and correctly.
It depends on the type of work you do and the size of the annual premium for the policy to be audited. Generally, a policy is audited every year, but some policies may be audited every third year.
Within 45 days after the expiration date of the policy period so that any premium adjustments may be processed into your premium billing cycle. You will be notified by mail shortly after the policy expiration date providing you a log in and password to use for the audit.
Premiums for workers’ compensation insurance and for general liability insurance are calculated based on estimates of exposure (payroll, receipts, sales, units, etc.) to be incurred during the policy period.
An audit is conducted at the conclusion of the policy period to determine the actual payroll and receipts incurred during the policy term. Adjustments will be made to the premium based on the actual information.
Estimates should be as close as possible to the actual amount of payroll and receipts incurred during the policy period. If the estimate is too low, you’ll receive a bill for the additional premium for the audit period and the current year.
If the estimate is too high, you’ll receive a refund, usually a credit to your current policy.
Contact your agent immediately and ask to increase your estimates of exposure. Don’t wait until the renewal date to adjust your payroll exposure. An adjustment now will help you avoid a large additional premium due when the policy period ends.
An employee’s payroll cannot be split between classes and must be charged to the code reflecting the higher exposure to injury. One exception to this occurs in the construction industry.
The division of an individual’s payroll in construction can be made only when exact hourly and gross payroll amounts are separately recorded for each work week classification.
Payroll mean remuneration in money or substitutes for money.
- Employee wages/salaries (including pay for overtime, holidays, vacations, or sickness)
- Executive officers’ wages (minimum/maximum rules apply)
- Commissions and bonuses
- Wages paid for time not worked, idle time, and strike periods
- Contributions or payments to IRS-qualified salary reduction plans
- Employees Retirement Income Securities Act of 1974 (contributions to employee accounts)
- Employee wages/salaries (including pay for holidays, vacations, or sickness)
- Payroll of executive officers, individual insureds, and partners (usually a minimum flat amount)
- Commission and bonuses
- Cash value of housing, lodging, and meals if furnished to employee as part of their wages
- Gratuities/tips
- Piece-work wages
- Employer’s payments on behalf of the employee to incentive plans or profit sharing plans
- Payments or allowances for tools
Yes, detailed and properly-maintained records permit completion of the audit accurately and in minimal amount of time.
Organized records afford you the correct classification and rating of your operation, while allowing any adjustments entitled to you.
Subcontractors who do not have adequate insurance may become the responsibility of the individual who hires them.
For subcontractors who do not have proper insurance, there will be an additional charge to your commercial general liability and/or workers’ compensation premiums.
When an insurance carrier receives audit information, it is reviewed and compared with the classification(s) and estimates of exposure on which your policy was originally rated and issued. A determination is made if an adjustment to your classification, rating exposure or premium is necessary.
If an adjustment is required, an additional premium or a refund in the form of a credit to your current policy will be processed.
Note: When the audit results in additional or returned premium, the current policy’s estimates of payroll and receipts (sales) will be adjusted.