Insurance Policy Audits
A Guide To Savings
As an policyholder, you will receive fair and courteous service from our staff of auditors. We are committed to producing audits that are in agreement with your policy provisions and have premium levels that are appropriate to your actual business operations.
6 Ways You Can Reduce Your Insurance Costs At Audit
Office Employees: Clerical office employees can be assigned to the clerical classification provided they are engaged exclusively in bookkeeping, record keeping, or other office work and their work place is physically separated from other operations.
Overtime: If your audit is based on payroll, separate any overtime (regular pay plus overtime pay) you paid to your employees. Records should note if the overtime was paid at time and a half, double time, or another amount. We will exclude the excess payroll in our calculations.
Employees' Tips: Tips received by employees may be excluded from the gross payroll if separately identified in the payroll records.
Subcontractors' Certificates of Insurance: Employers who use subcontractors can reduce their insurance costs by obtaining a current certificate of insurance before each job starts. Without these, all contract payments must be treated as employee payroll and a premium charge will be made.
Drivers (for liability coverage only): Employees whose sole responsibility is driving may be excluded from the payroll if their wages are shown separately. Employees who perform other duties in addition to driving must be placed in the highest rated classification describing their duties.
Payroll Division: Division of an individual employee's payroll to more than one classification is not allowed unless the payroll of an individual employee is allocated to each type of work performed if proper records are kept. Some classifications may not be split. For contractors, it is particularly important to keep separate payroll and work time records for each kind of construction. Executive pay should be shown separately. This permits part of the payroll to be excluded when maximum executive payroll amounts are used in workers' compensation.