As you know, Worker’s Compensation and General Liability policies are subject to an Annual Audit by Insurance Companies.  Within 60 days after expiration, a Company Auditor will come to your office, or you will receive a request in the mail for a self-audit.  The purpose is to determine the actual “exposure units” upon which your final premium will be based.

The following are suggestions that should lessen the possibility of being overcharged for your coverage:

 1 - Some premiums are based upon annual sales or receipts.  Be sure the sales tax that you remit separately is not included in the gross sales figure.  Also remember that the inter-company sales (involving subsidiaries and parent companies) are excluded.

2 - If your General Liability premium is based upon payroll, it is possible that you may omit your truck drivers’ wages. Discuss this with the Auditor, or call us if you have any questions.

3 - When auditing General Liability and Worker’s Compensation, consider overtime pay as straight time when determining payroll base.

4 - If the Audit is performed in person, request a copy of the Auditor’s worksheet   and any further calculations that may be made

Check these figures against your records to ensure you’re not mistakenly overcharged.

If you have any questions concerning the auditing procedure, please give us a call.  We’d be happy to help!