Skip to content
Join the waiting listJoin the list

Printable checklist

Premium audit checklist: what the auditor asks for

Carriers and state funds ask for records like these. Print the list and gather each one before the date in your audit letter.

Facts checked Nov 8, 2026 · Sources

Records to gather

Print the list or save it as a PDF, then tick each record as you find it.

Premium audit checklist

Payroll

  • Payroll journal or register for the policy yearWhat each employee was paid.
  • Quarterly payroll tax reportsFederal Form 941 and your state's unemployment reports, for each quarter of the policy year.

Your books

  • General ledger, or bank statements and canceled checks
  • Cash disbursements journalWhat you paid out, by date.
  • Profit and loss statement and your latest tax return

Your subs

  • A list of every sub and 1099 worker you paidWith the work each did and what each was paid. In QuickBooks Online, the Transaction List by Vendor report has each payment.
  • Forms 1099, and Form 1096 if you filed them on paper
  • A certificate of insurance for each subFor the dates they worked for you: workers' comp, and general liability if your carrier asks for it.
  • A log of each payment to a sub in cashIts date, amount, payee and the work done, if you paid any sub in cash. LWCC also asks for the last 4 digits of the payee's Social Security number.

Your business

  • A description of each kind of work you doIt lets the auditor check the class codes on your policy.

Your audit letter has the final list. Each carrier asks for its own records, and some ask for more.

What happens after the audit letter

The premium you paid during the policy year was a deposit, set from estimates. The audit turns it into the final premium. Carriers' own pages describe the steps:

  1. The letter or email says how the audit is done: a form by mail or online, a call, or an auditor at your office. Westfield uses 4 ways, from a mail form to a visit.
  2. It gives a date for your records, or for the call or visit. Markel asks for records within 50 days after the policy expires, and processes the audit "as non-compliant" when they aren't back by then.
  3. The auditor compares what your premium was estimated on, such as payroll, sales or what you paid subs, with your records for the policy year.
  4. You get a bill for more premium, or a refund.
  5. If you disagree, raise it before your carrier's deadline: Builders Mutual gives 15 calendar days from the issue date on its audit bill. How to dispute a premium audit bill lists more carriers' deadlines, what to send and a sample letter.

Most audits come soon after the policy expires. Builders Mutual says to expect yours within 45 days, Auto-Owners usually completes them within 60, and Westfield aims to finish within 90. The workers' comp policy lets the carrier audit your records for up to 3 years after it expires.

What each audit counts

Workers' comp and general liability both have audits, and they count your subs differently:

WhatWorkers' compGeneral liability
What it's charged onWorkers' comp: Payroll, at the rate for each class code on your policy.General liability: Payroll, sales or what you paid subs. Westfield says contractors are usually rated on payroll, and on total cost when they hire subs.
A sub with a certificateWorkers' comp: Left out, when the certificate shows the sub had its own workers' comp while it worked for you.General liability: Still counted: the total you paid goes into a class for insured subs, at a lower rate than an uninsured sub's.
A sub without oneWorkers' comp: Counted as your payroll. Without the sub's payroll records, the price you paid it can be used.General liability: Counted in a class for uninsured subs, at the higher rate.

Each carrier applies its own rules. For a sub without a certificate, Builders Mutual counts all of a labor-only price on both audits, at least 50 percent of a price that includes materials, or at least 90 percent when the invoice doesn't show the materials apart.

An example

Harborline Mutual's audit letter reached Larch Bend Builders in August, for its policy year of July 1, 2025 to June 30, 2026. Dana Whitfield printed this list and found every record but one: Aldaco Drywall's certificate for the months it worked on the Oak Hill Library job.

Aldaco had its own workers' comp the whole time. Without its certificate, though, the audit bill of December 8 counted the $94,700 paid to Aldaco as Larch Bend's own payroll: $13,258 more premium at a rate of $14 per $100. The example in how to dispute a premium audit bill shows how Larch Bend disputed it, with 2 other charges the bill got wrong.

Questions people ask

What does a premium audit ask for?

Records of what your premium is charged on: payroll, sales and what you paid subs, with each sub's certificate. The list above gathers the records carriers' own pages ask for, and your audit letter says which ones yours wants.

Do I have to do the audit?

Yes, your policies require it. The workers' comp policy says you will let the carrier examine and audit all your records that relate to it, and the general liability policy says you must keep the records it needs for premium and send copies when asked.

What if I don't send my records?

You can be charged more, or lose the policy. Westfield's page says a missed audit may bring an audit noncompliance charge, an estimated audit or cancellation. Under NCCI's rule, in the states that approved it, that charge on workers' comp can be up to 2 times your estimated annual premium, after 2 tries to get your records, if its endorsement was on your policy from the start.

How long does an audit take?

Usually a few hours or less. Builders Mutual says its auditors are usually on site 1 to 3 hours, SAIF in Oregon says its audits average about 3 hours but can take from 30 minutes to a full week, and Auto-Owners says a phone audit may take as little as a few minutes.

What if a sub's certificate is missing?

The audit can count what you paid that sub as your own payroll. Harford Mutual's page says amounts paid to subs must be treated as payroll when their certificates aren't available for review. If your bill already counts one, get the sub's certificate for the dates it worked and dispute the charge before your carrier's deadline.

Do payments too small for a Form 1099 count?

Yes, the same as larger ones. The IRS limit decides only which payments need a Form 1099: $600 through 2025, and $2,000 for payments made from 2026 on. Liberty Mutual's audit FAQ says the IRS's $600 limit doesn't apply to workers' comp or general liability premium.

Sources

Facts checked Nov 8, 2026. This page states facts, not insurance or legal advice. Found a mistake? Email hello@coverstamp.com, and see how we check facts.

Get in first

Coverstamp keeps track of your subs' certificates for you. It asks for each one, checks it against your requirements and follows up on what's missing. It opens in early 2027, and people on the list get in first.

What do you do?

Join, and you get in first, before we open to everyone. We'll email you once, when your place is ready, and never share your email. Privacy policy

Premium audit checklist

What to have ready for a premium audit

Payroll

  • Payroll journal or register for the policy yearWhat each employee was paid.
  • Quarterly payroll tax reportsFederal Form 941 and your state's unemployment reports, for each quarter of the policy year.

Your books

  • General ledger, or bank statements and canceled checks
  • Cash disbursements journalWhat you paid out, by date.
  • Profit and loss statement and your latest tax return

Your subs

  • A list of every sub and 1099 worker you paidWith the work each did and what each was paid. In QuickBooks Online, the Transaction List by Vendor report has each payment.
  • Forms 1099, and Form 1096 if you filed them on paper
  • A certificate of insurance for each subFor the dates they worked for you: workers' comp, and general liability if your carrier asks for it.
  • A log of each payment to a sub in cashIts date, amount, payee and the work done, if you paid any sub in cash. LWCC also asks for the last 4 digits of the payee's Social Security number.

Your business

  • A description of each kind of work you doIt lets the auditor check the class codes on your policy.

Your audit letter has the final list. Each carrier asks for its own records, and some ask for more.

Sources, checked Nov 8, 2026: SFM, Annual premium audits; State Farm, Premium audit; Nationwide, Premium audit; Builders Mutual, Audit kit; Amerisure, Premium audit fact sheet; LWCC, Workers' comp premium audit and Contractor resources; IRS, About Form 1096.coverstamp.com/tools/audit-letter-checklistPrepared with Coverstamp