Contractors’ Insurance Annual Checkup – What Is It And Why Do I Need It?

admin — Mon, 26 Jan 2009 17:43:23 +0000

Our agency conducts annual insurance checkups for our contractor clients, and I am often asked “Why is this necessary or recommended since updated information has already been provided in the renewal applications and over numerous phone conversations that occur throughout the year?”

The purpose of the contractor annual insurance checkup is to review your current coverages; to determine if your coverages and limits are adequate (example: have you signed a contract that requires higher limits?); to determine if your key employee structure has changed, and to find out if anything new is going on with your business.

Your insurance agent is not necessarily the first contact you think about when you change your operations or buy something new (unless you need proof of insurance). The time to discover you forgot to let us know is NOT after you’ve had a loss.

During the annual insurance checkup, we will review your Workers Compensation, General Liability, Business Auto, Contractors Equipment, Bonds, Umbrella and Builders Risk (if applicable) and make risk management recommendations using our custom checklist tool. We can also provide you with quotes for Life Insurance, Key Man Life Insurance and Group Health Insurance.

As your business grows, or you downsize your operation, your insurance needs change. Also, the education that you receive will likely result in maximum premium savings.

In addition to meeting with your agent to discuss your business changes and needs, it’s also a good idea to do an annual checkup with the agent who handles your personal insurance.

Working together, we can help you protect your valuable assets by providing the right coverage at the lowest possible cost.

Surviving Your Insurance Audits – What Contractors Need To Know BEFORE The Auditor Arrives

admin — Fri, 09 Jan 2009 14:23:42 +0000

Insurance Audit – just these simple words can trigger very negative emotions for a contractor! In this blog I will attempt to help prepare you for your next Workers Compensation and/or General Liability audits.

To begin, both of these policies are based on estimated numbers (employee payroll, uninsured sub payroll, amounts paid to insured subs, gross receipts, etc.) since you don’t know exactly what they will be at the end of the policy term. Usually you will be contacted by the auditor 30 to 45 days after the expiration of the policies requesting an appointment to meet with you and review your records.

The insurance auditor will want to review the following:

W-2′s (employee payrolls)
1099′s (subcontractor payrolls)
ledger statements
certificates of insurance on your subcontractors (please make sure that the policy effective and expiration dates on your subcontractor’s certificate are in line with the dates of their service; sometimes you will need to have more than one certificate on your subcontractor).
Job duties of your employees and subcontractors — this is needed to make sure that they are properly classified according to insurance rules and regulations

After the insurance auditor meets with you and reviews the above information, he will go back to his office and “count the beans” to determine whether you overpaid or underpaid your premiums. He will then send his report to the insurance company. Depending on the outcome, you will either receive a return premium or additional premium invoice along with a copy of the audit worksheets. Please be sure that you understand audit additional premiums are due and payable in full within 30 days of the audit, unless it’s being disputed.

Due to confidentiality laws, your insurance agent will not be given a copy of the audit worksheets unless you give your permission during the audit. I strongly recommend you give your permission. If you do dispute your audit you will need your agent’s help during the process. Without the audit worksheets there won’t be much we can do for you.

When the insurance auditor arrives at your office I recommend that you have a comfortable, quiet place for them to work, and have all of your paperwork ready and organized. Make sure that the person who is to meet with the insurance auditor has cleared their calendar so they won’t be interrupted with phone calls, office meetings, etc. Treat the auditor as a respected guest and not as the “enemy” — offer them the same amenities you would offer to any other guest. Remember, they are people too and are there to do their job. I’ve dealt with many insurance auditors, and their main complaints are that when they get to their appointment the records, people, place to work, etc. are not available and the insured was rude. Their negative impressions may not be the “whole story”, but it can make a difference. Believe me when I tell you they don’t want to be in your office any longer than absolutely necessary!

Contractor Insurance And Risk Management Blog » Insurance Audit

Contractors’ Insurance Annual Checkup – What Is It And Why Do I Need It?

Surviving Your Insurance Audits – What Contractors Need To Know BEFORE The Auditor Arrives