Preliminary Physical Audits

A preliminary physical audit may be required as a condition of your policy. If required, one of our audit vendors will contact you to set up an appointment to review your payroll records from the past year (prior to, and possibly overlapping the start of this policy term). The purpose of this preliminary audit is to verify the exposure estimates provided on your application and to confirm that the class codes listed most accurately describe your business. By verifying this information early on in your policy, we can ensure your premium estimates are adequate, which will result in fewer surprises at the time of your final audit.

Your auditor may ask to review a variety of payroll documentation, including prior tax records, payroll records, QuickBooks summaries or other similar records. If your most recent records do not accurately reflect your expected exposures for the upcoming term, be sure to explain why to your auditor and if possible, have documentation available to support your explanation.  If you are a contractor and hire any subcontractors, be sure to review our Subcontractors and have the appropriate documentation ready as well.