Insurance premium audit for construction
A contractor's insurance premium is often set from an estimate and then adjusted after the policy year. The adjustment depends on what the insurer says your payroll and subcontract costs were.
A partner firm can review that adjustment for accuracy. Fairview Audit connects construction businesses with partner firms. Fairview does not perform the review itself.
Why this category matters for construction
Construction payroll is mixed. One company may employ carpenters, laborers, drivers, estimators and office staff, all with different risk ratings. The insurer assigns each worker to a classification, and the classification drives the charge. A worker placed in the wrong one can raise the premium without anyone noticing.
Subcontractors add a second issue. If a subcontractor has its own valid cover, its costs usually should not be counted against you. If it lacks cover, the insurer may treat its costs as if they were your own payroll. The result depends on whether you hold the right certificate for the right dates. [VERIFY: how your insurer and jurisdiction treat uninsured subcontractors]
Projects also differ in structure. Work under a wrap-up program, a project-specific policy or an owner-controlled program may sit outside your own policy. If those costs are still counted in your audit, the premium is overstated.
What a review typically examines
A partner firm usually compares the insurer's audit worksheet with your own records. It may look at:
- Whether each employee or crew sits in a classification that matches the work actually done.
- Whether office, estimating and supervisory staff are separated from field labor where the rules allow.
- Whether overtime is treated the way the policy says.
- Whether subcontractor costs were counted, and whether certificates covered the period of the work.
- Whether materials-only invoices or equipment rentals were mistaken for labor.
- Whether work under a wrap-up or project-specific program was removed from your base.
- Whether the final premium follows the policy terms and the rating rules attached to it.
Warning: Premium audits usually have a response window. Check the notice from your insurer and ask a partner firm early. [CONFIRM: a partner firm supplies and approves any statement about timing]
What to have ready
- The policy, endorsements and the insurer's audit notice and worksheet.
- Payroll registers by job and by employee, with job descriptions.
- Records that show who worked in the field and who worked in the office.
- A subcontractor list with certificates of insurance and the dates each covers.
- Subcontract agreements, and invoices that show labor and materials separately.
- Documents for any wrap-up or owner-controlled insurance program.
- Prior audit results and any correspondence with the insurer.
- A list of disputes you have already raised.
How matching works
Choose the entry path that fits your business: larger business, smaller business, or not sure or another need. There is no fixed size cut-off between the two types of firm. A request goes to the matched partner firm, or to Fairview for manual matching. You then speak with the firm directly. Any fees are between you and the firm under its own terms.
The firm gathers data, presents findings with you involved and agrees with you how to raise corrections with the insurer. See how it works for the general steps.
An independent partner firm that specializes in insurance premium audit handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
FAQ
Does a premium review replace my insurance broker?
No. The partner firm reviews the audit result. Your broker still advises on cover and placement.
Will a review look at subcontractors?
Yes, usually. Subcontractor certificates and agreements are one of the main areas for contractors.
Can I ask for a review after the insurer has issued a final bill?
Often yes, but the options depend on the insurer and the policy. Ask the partner firm what is still open. [VERIFY: dispute rights and deadlines in your policy]
Related pages
Read the parent page on insurance premium audit and the construction industry page. Contractors also buy from many suppliers: see supplier contract compliance for construction.
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.