Benefits of having one company handle your audit and underwriting
The insurance underwriting process can be a daunting prospect, but it pays off to fully understand all the steps.
When it comes to workers’ compensation and general liability insurance for your company, your policy is first based on estimated exposures. That includes payroll and classifications. For the final premium, your policy is based on a premium audit that determines actual exposures as compared to estimated exposures.
To conduct a premium audit, most insurance companies hire an outside, independent auditor. That’s not the case at BITCO. We have a team of auditors that handle most premium audits in-house. Even better: our auditors are located throughout the country, which means we can provide physical audits when needed, rather than conducting them through conference calls.
Benefits of in-house premium audits
So, what does this mean for your company’s insurance policy? It means that when you have a question about your policy, you get an answer.
As auditors, we’re all using the same rulebook. The difference at BITCO is that we’re all on the same team handling the process from start to finish.
This creates a smoother process for you. Our team can answer your questions. We work with your agent, and we can get back to you promptly. Your audit comes into our home office and is reviewed by our internal team. The final audit premium calculation is handled internally.
Help the process go smoothly: paperwork and tracking
When it comes time for your company’s premium audit, there are a few steps you can take to make the process flow even smoother.
First, make sure your paperwork and tracking mechanisms are in place and up to par. One example is class codes. We recommend you keep track of your payroll and overtime by class code. Your auditor will review these.
If your employees perform more than one type of work, maintain payroll records that disclose the actual payroll by classification for each such employee. Even if manual rules permit the division of the payroll, we cannot divide an employee's payroll between more than one classification by means of a ratio or percentage split of the payroll.
Have your subcontractor certificates ready
It’s also helpful to gather all the certificates of insurance from your subcontractors. If you used subcontractors during the policy period, the premium for your subcontractors will depend on the type of coverage that is being audited.
For workers’ compensation insurance, if you don’t provide your subcontractor’s proof of current workers’ compensation coverage, then we may likely include the payroll of the subcontractor’s employees in the audit.
For general liability insurance, you may still be held responsible for a portion of injuries or damages even with insured subcontractors. We will make a small premium charge for your insured subcontractors.
What it comes down to is that you want your subcontractors to have their own insurance and have proof of that insurance, so you’re not carrying that risk and have to pay the cost. Your company should transfer that risk by making it an expectation that all subcontractors have the necessary insurance.
Reach out to learn more
With extensive knowledge of your business’ industry and a team with many experienced auditors including several with more than 20 years at the company, we’re here to help your premium audit be a smooth process for your business.
To learn more about premium audits at BITCO, find a BITCO agent near you at BITCO.com.
For information purposes only. BITCO's blog content does not address all potential circumstances and is not a substitute for business, safety, or legal consultation.