Preparing for your premium audit
Preparing for your premium audit
Every policyholder with SECURA undergoes a premium audit at the end of their policy period. Being prepared helps make the premium audit process efficient, transparent, and accurate, ensuring your insurance premium reflects your true business activity. If the audit results in a large bill, SECURA may update your policy to reflect this increase. It’s important to review the endorsements to ensure they accurately represent your business operations and promptly discuss any discrepancies with your agent.
Preparing for your premium audit helps ensure the process is smooth, accurate, and completed quickly. Below is a guide outlining what to expect, what documents may be needed, and how to prepare your business.
Common records requested during a premium audit include:
- Payroll reports for the full policy period
- Quarterly wage reports (Federal 941s)
- State unemployment records
- Profit and loss statement or income statement
- Subcontractor payment records and certificates of insurance
- Sales reports (if applicable)
- Job duty descriptions for employees
- Principal ownership percentages and payroll details
- List of business locations
Organize records by policy period
Ensure all records correspond to the exact dates of the policy period. If your documents cover a different date range, include clarification or supplemental reports.
Review employee classifications
Have job descriptions ready for all employees. Accurate classification helps ensure the correct Workers’ Compensation or General Liability rates are applied.
Gather subcontractor information
If you hired subcontractors, collect the following:
- Certificates of insurance (Workers’ Compensation and General Liability)
- Payment amounts
- Work performed
Missing insurance certificates may result in subcontractor costs being included as payroll during the audit.
Helpful tips to prepare for your premium audit
Before your audit, take a moment to ensure:
- Records correspond to the policy period dates to avoid discrepancies
- Employee roles and classifications are provided and accurate based on the work performed
- If employee duties or operations change significantly, make a note and update your agent
- Subcontractor documentation is provided including certificates of insurance and cost records
- You retain copies of the records you provide
Be ready to:
- Respond promptly to audit requests
- Explain business operations and any changes
- Provide additional documentation if requested
- Adjust your savings as your payroll fluctuates to cover potential adjustments to your premium
Premium audit checklist
Download our premium audit checklist to help you prepare for your audit by ensuring you collect the most commonly requested documents.