Over the last two weeks, we have spent considerable time discussing insurance premium audits, what your school can do to prepare for them, and tips and tricks to avoid overpaying on your premiums. (You can see part 1 here and part 2 right here.)

For the last post on insurance audits, we are going to address the most common questions associated with premium audits:

Q: Why is an audit necessary?
A: To calculate the amount of premium you must be charged. An audit determines actual exposures and operations. After comparing them with initial estimates and later endorsements, a premium adjustment is made via the Statement of Audit.

Q: What happens If I don’t have Certificates of Insurance at audit time?
A: It is in your best interest to request a certificate from a subcontractor at the time the work is performed rather than at the time of audit. You will be charged for those subcontractors not providing General Liability certificates

Q: Several of my employees do more than one type of work. How should I assign their payrolls?
A: If these employees are not in construction, they will go into the highest-rated class in which they work. Payrolls may be divided into appropriate construction classifications, provided the division is reflected in the original records in dollar amounts.

If you have any additional questions regarding premium audits and what your school can do to save money on them, please don’t hesitate to call our office at (702) 507-6999.