Why is an audit necessary?
Audits help us make sure the premium you’re being charged is accurate. Your actual exposures and operations during the policy period are determined by an audit after the policy expires and compared with the initial estimates and later endorsements, and then premium is adjusted through the Statement of Audit.
What is a service audit?
A service audit is usually performed within the first 60 days of a new, complex account. These audits can provide a smooth and timely final audit; assist in record set-up resulting in premium savings; determine auditable locations on multi-location accounts; identify allowable deductions and classifications; and decrease the likelihood of costly additional premiums.
If overtime is not summarized, will I still get credit?
Overtime records must show overtime pay separately by employee or in summary by classification, or it may not be deducted. Be sure you let our auditor know that you have overtime.
No one will be available when the audit appointment is scheduled. What should I do?
Please let the auditor know as soon as possible. Additional information to include in that message is:
- Contact person and his or her available hours
- Location of audit if different than the original
- Phone number and name of insured on the policy
If I don't have certificates of insurance for the audit, does Unigard allow me to get them?
It is in your best interest to request a certificate at the time work is performed rather than the time of audit. If certificates aren’t provided, you will be charged for uninsured subcontractors as though they were your employees.
Several of my employees do more than one type of work. How should I assign their payrolls?
If these employees are not associated with construction work, they may be placed in the highest rated class in which they work. Payroll may be divided into appropriate construction classifications, provided these hour and dollar amounts are reflected in the original records. Most states allow a separation between construction and non-construction work. Consult with your agent about state rules that may affect you.
Some of my work could be considered clerical. Should I separate it?
Clerical and outside sales classifications can’t be used with another class for division of an individual employee's payroll.
Should I exclude employee 401(k) and cafeteria plan contributions from payroll used for the audit?
Payment for salary reduction, retirement or cafeteria plans made through deductions from an employee's gross pay are included in the audited payroll.