WHAT DO CONTRACTORS Have TO Learn about PREMIUM AUDITS? Most North Dakota General Liability Insurance discovers they’re governed by premium audits from insurance companies for general liability, workers compensation, and often for automobile, as well as North Dakota General Liability Insurance policies. This is applicable most kinds of contractors, which includes air conditioning, heating ventilation, plumbing contractors, and general contractors (HVAC) contractors, electrical contractors drywall contractors, roofing contractors, painting contractors, so on.
A high quality review is a review of your records, financial reports, or business operations to find out what you should ask you for the contractor liability insurance of yours, workers compensation, or maybe some other coverage provided. The goal is determining the last earned premium for a specified policy which was given on the foundation of payroll, subcontracting costs, sales, or maybe several other variables.
Policy premiums use projections you provided for payroll, sales, moreover possibly subcontractor costs. The insurance rates of yours are able to differ based on this info, the review decides what the appropriate premium should be based upon the real experience of yours.
The review is done by an auditor selected by the insurance business. They could be a worker of the insurance business, or maybe a worker of an auditing firm, or perhaps an independent contractor.
THERE ARE 3 TYPES OF PREMIUM AUDITS. Based on the dimensions of the premiums of yours and the operations of yours you may receive one of the following:
Physical Audit – Conducted at the premises of yours and with a second location including your accountant’s office.
Phone Audit – An auditor contacts you over the telephone to finish the inspection. This type of inspection is usually for small to mid sized accounts.
Mail Audit – A voluntary review form with directions is mailed to you. Mail audits are usually performed for smaller accounts.
RECORDS AUDITORS MAY ASK TO SEE: Auditors will probably request a single or even much more of the following types of records: