Upcoming audit? We’ve got you covered.
Industry expertise comes naturally at Builders Mutual. We specialize in the construction industry; we know your business and take pride in our dedication to each of our policyholders. At Builders Mutual, we strive to provide the best service possible, and our annual audit process is just another way we can offer you the information you need.
Each year, your workers’ compensation and general liability account(s) are audited. By being prepared with the proper records and armed with a thorough understanding of the process, your audit will be efficient and effortless. All the tools you need to prepare for your audit, as well as a list of Frequently Asked Questions and contact information, are included in this site. These comprehensive resources are just one more way we have you covered!
We’ll take you through it, step-by-step.
Preparing for an insurance audit can be overwhelming. What documentation should you provide? How far back should you go? Cut through the confusion—view this slideshow, presented by Builders University, to learn the top ten things you can do to prepare for a successful audit. Being prepared could save you time and money. In this slideshow you will:
- Learn what records to provide at the audit
- Get ideas on organizing records
- Understand retention guidelines for certain records
- Get insight into common audit questions on remuneration and class codes
- Identify tips on working with subcontractors
After you’ve watched our slideshow, please download Builders University’s Audit Preparation checklist.
These instructions for QuickBooks will help with record organization in your business and give you the tools you need to make your audit easier and more streamlined.
Typical questions we ask during an audit.
We have developed a Premium Audit Workers’ Compensation Classification Process document to help you understand the typical questions that will be asked of you during your audit. Please review this document to familiarize yourself with the standard Builders Mutual Audit process.
Premium Audit FAQs
If you’re not familiar with the audit process, it can be a bit intimidating. Never fear! We’ve compiled a list of frequently asked questions and provided the answers below. As always, if you have any further questions please feel free to contact your auditor.
WorkSafe Workers’ Compensation Policies
Why can’t you audit my workers’ comp and general liability policies at the same time?
Audits are originated based on your policy’s expiration date. For example, if your workers’ comp policy expires in January and your general liability policy expires in May, you can expect separate audits within 45 days following each expiration.
If you would like to line up your workers’ comp and general liability policy dates this can be arranged by your agent. Please keep in mind, by doing so both your workers’ comp and general liability premiums would be due at the same time as well as possible audit bills.
Why is the volume discount different on final audit billing from what is shown on my monthly worksheet?
The discount factor is based on actual premium. Be sure to review your estimated bill carefully at the time of policy renewal, as this becomes the basis for your future reporting forms.
I have been reporting and paying on my payroll monthly. Why do I have a balance at the time of audit?
There may be several reasons:
- The audit generated more payroll than you previously reported.
- The allocation of payroll among the applicable classifications may be different than you reported.
- A minimum premium may apply. Every classification has a minimum premium. If the payroll you reported during the year generates a calculated premium that falls below the specific minimum premium for the classification of your policy, then the minimum is applied.
Why am I being charged again for my Expense Constant?
The Expense Constant is not being billed again. To confirm:
- Add up all premium payments (excluding payments toward deposit) for the policy term. Add the Expense Constant. The total should match the Previously Paid amount shown on your audit bill.
- Add the Expense Constant and Terrorism fee to the Normal Premium Amount (found on the second page of your audit bill). This is your Total Premium—from this, subtract the Previously Paid amount to arrive at the audit bill balance.
General Liability Policies
Why are my codes listed twice on my audit bill?
General Liability has two sub-lines of coverage: Premises Operations and Products Completed Operations. The Premises Operations covers you while construction is in progress; Products Completed Operations covers you after construction is completed. These two sub-lines of coverage have different rates and are therefore listed separately on the bill.
Need help? Have questions? Ask your Auditor.
If you have questions concerning the information needed for an audit, please contact your auditor prior to your scheduled appointment. During the audit, if you have any questions, please ask.
You may also call our Premium Audit Department toll-free at (888) 612.0399, ext. 478.
You have 15 days from the date of the Final Audit Statement to dispute or question your audit. If you believe that the Final Audit Statement contains incorrect exposures, you should contact the Premium Audit Department in writing and provide documentation to support your dispute. For more detailed instructions on the type of documentation needed to dispute an audit, please click here.
Preparando Para La Auditoría es Facil.
Builders Mutual es muy orgulloso de servir la industria de construcción. Nuestro equipo de auditoría especializa en clasificando precisamente la prima de seguros de construcción. Cada año, Builders Mutual conducta una auditoría en sus pólizas de compensación laboral y de responsabilidad civil general para determinar la prima final de su póliza. Preparando para la auditoría es bien importante. Con la documentación apropiada, Usted puede ahorrar tiempo y dinero. Utilice este recurso para educarse y prepararse para su próxima auditoria.