BUSINESS OWNERS
-YOUR INSURANCE POLICIES ARE SUBJECT TO AUDIT-

Insurance companies base your premiums on the estimates of payroll, gross sales, area (square footage), total project cost, admissions, unit–per unit, or other variable factors you provide at the policy inception or renewal.

At the end of the term, insurance companies will adjust the premium of your General Liability and Workers’ Compensation annually, based on actual value of these variables as provided by you during the audit. 

Therefore, it is very important that the owner of the business meet with the auditor to avoid mistakes and misstatements about business activities.  It is also important that employees be assigned to job classifications properly and that the paperwork is clear, so that the auditor can understand this.

Employers must have on file, for each subcontractor, a Certificate of Insurance covering General Liability and Workers' Compensation, which can be presented to the auditor.