SECURA’s premium audit vendors
SECURA partners with third-party premium audit vendors to perform all audits. The vendors are:
- Information Providers Inc.
- RLD Associates Inc.
- Vista Resources
Each vendor will work directly with you on the audit.
Types of audits conducted
Premium audits can be conducted in a variety of ways. The type of audit is primarily determined by the premium amount. Other factors include the state, the industry, and specific operational exposures.
- Mail or online — You will receive a form from one of our authorized third-party vendors with instructions to complete and return the requested information.
- Phone — A representative from one of our authorized third-party vendors will reach out to you with a form to complete and then follow up with a phone call to review your information.
- Virtual (remote physical) — A representative from one of our authorized third-party vendors will reach out to you to request supporting records. This type of audit will be conducted electronically instead of with an on-site visit.[KR1.1]
- Physical (in person) — A representative from one of our authorized third-party vendors will visit your business to conduct the audit. You will be notified by mail, email, or phone to schedule an appointment.
Once the audit is complete, we will calculate your final premium and deliver your audit results to your agent. Your agent will then communicate those results to you.
Understanding the premium audit process and document review
A premium audit is a routine part of your insurance policy and typically takes place shortly after your policy expires or renews. You will receive a letter from one of our authorized vendors informing you about the audit process and what records will be needed. Responding to your audit notice as soon as you’re contacted is the first step toward a smooth and successful audit process.
As part of the audit process, the auditor reviews the documentation provided and then contacts you to conduct an exit interview. During that discussion, the auditor reviews the information submitted, addresses any outstanding questions, and develops a complete understanding of operations and exposures before finalizing the audit.
Payroll records
The auditor will review your payroll records to make sure the premiums you’ve paid match the payroll your employees have received. Payroll included for auditing purposes includes wages, salaries, bonuses, commissions, and other types of employee compensation.
On the other hand, there are certain types of pay that we will not include such as:
- Employer contributions to group insurance or pension plan
- Reimbursements for qualified expenses
- Tips and gratuities
Who Counts as an employee for audit purposes?
When it comes to your policy audit, it’s important to know who counts as an employee. In general, employees include full-time, part-time, temporary, and seasonal workers employed during your policy period.
1099 labor and subcontractors
Classifying subcontractors during a premium audit can be challenging. State workers’ compensation rules often define employees and independent contractors differently than the IRS or your state unemployment insurance department. As a result, someone treated as an independent contractor for tax purposes is not automatically considered one for your Workers’ Compensation coverage.
To ensure accuracy, our premium auditors review payments made to anyone performing labor outside your regular payroll. If individuals are paid for labor but not included in your Workers’ Compensation premium, auditors must confirm that they meet your state’s legal requirements for independent contractors.
If your business uses 1099 labor or works with subcontractors, their information must be included in the audit. This includes details such as the subcontractor’s business name, contact information, total cost, and proof of insurance. Providing this documentation helps demonstrate that your business has taken the proper steps to mitigate potential liabilities.