Questions You Should be Asking Your Agent


First of all, nobody likes the word AUDIT!  However, in the business world they are apart of the process.  And, nobody likes to get the big suprise, they owe more money.

Typically you will have an annual General Liability and Work Comp Audit.  If you have not had these before, get ready.  Insurance companies are beefing up their Auditors because they are hurting for money.  Just like the IRS, they are also doing more audits now because they need money.

So what can be done to prepare for a Work Comp and General Liability audit?  Well, think about meeting with your Accountant before tax time.  Your accountant knows the system and can help you navigate through the process.  Same should be with your insurance agent.  Here are just a few ideas to do when you get that phone call from the insurane company asking to meet for an audit:

-Try and schedule the meeting for a Friday afternoon.  Auditors are people too and would probably like to get their weekend started.

-Call your agent and make them aware of the audit.  (This is where your agent should step up and walk you through the process)

-Confirm that your payroll amounts match the policy period

-Compile certificates of insurance for all Sub-contractors, and if you used any uninsured subs record their payroll (not contract amount).

-Create a summary page for the auditor with all this information. 

-Attach a copy of your payroll ledger or state unemployment tax returns

The idea is for you to control the audit.  Being prepared puts you in that position.  However, it's hard to be prepared if you don't know what they are looking for.  Our clients are prepared, are you?  We would always be glad to help out.  Give us a call.  Sean Leigh