General Liability and Workers Compensation premiums for business owners are based on the actual sales and payroll for a policy period. Sometimesour clients have a better year than anticipated or have an increase in hiring staff. Here are a few tips to avoid any large audit premiums:
- Notify our agency if there are noticeable increases in sales or payroll. We can adjust the policy at any time to reflect these increases avoiding a large
- Obtain certificates or state-approved exemption forms from all your subcontractors. These will be required at the time of the audit.
Any subcontractors that you do not maintain these forms on will be considered as employees, therefore, will increase the amount of payroll you will be charged for.
- Sales & Clerical payroll cannot be split between different class codes. For example, if you have an employee
that works in the office and also helps in stocking shelves, our company will take the higher of the two class
codes, which in this case is a store class and charge the entire payroll under that class.