Your General Liability & Workers Compensation polices are issued on estimated numbers, these policies are audited at the end or the policy term to determine whether you overpaid or underpaid your premiums.
The Insurance auditor will want to review the following:
Payroll Records. Income Statements. W2s, 1099s Subcontractor payroll.
Employee Records-job duties, number of employees.
Check register & Cash disbursements show payments to subcontractors, material costs.
Sales Journal includes all goods & products, service, repair & installation.
Certificates of insurance on your subcontractors.
It is a good idea to meet with your Agent mid-term & to be proactive
Prepare throughout the year.
Keep good recordkeeping.
Do not comingle personal and business records.
Subcontractor invoices should break down labor vs material costs.
If you underestimated plan to pay those additional costs at audit or ask your Agent to endorse the policy mid-term.
A’Hern is here to help you work through your audit, we would be happy to meet with you and the auditor if you do have a dispute of the final audit to see if something was overlooked during the audit process.
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