Our Underwriter’s base your premium on an estimate of your payroll for the upcoming policy term. A premium audit is conducted after the policy term expires. The process involves an examination of the policyholder’s financial records to determine actual payroll and ensure your operation is properly classified. The examination may result in an adjustment to the premium based on the findings of the audit.
AmFed is dedicated to making sure you are paying an accurate and fair premium for your coverage. A premium audit helps us do this.
What is a premium audit?
Our underwriters base your premium on an estimate of your payroll for the upcoming policy term. A premium audit is conducted after the policy term expires. The process involves an examination of your financial records to determine your actual payroll and ensure your operation is properly classified. This may result in an adjustment to your premium based on the findings of the audit.
Why is it necessary?
AmFed is committed to making sure you pay an accurate, fair premium for your coverage. Premium audit helps us accomplish this.
Will an auditor come to my office?
It is possible for an auditor to come to your physical location. There are several types of audits, including in-person audits and telephone audits. Some policyholders complete self-audits online or on a paper form. The type of audit we conduct depends on the nature of your business.
What types of records may be required for a premium audit?
The following types of records may be required for a premium audit:
• Payroll journal/register
• Job cost reports
• General ledger
• Profit & loss statement
• Income tax reports & schedules (such as a Schedule C)
• Form 941 quarterly payroll reports
• Form 940 and Form 943 annual payroll reports
• Check books/registers
• Certificates of insurance for insured subcontractors
• Division of Workers' Compensation Independent Subcontractor Agreements for uninsured subcontractors
• Contracts with uninsured subcontractors
• Invoices from uninsured subcontractors
• Draw schedules for uninsured subcontractors
What happens at the completion of an audit?
It is recommended that you review your audit report. Addressing any questions you may have will avoid surprises when you receive your final audit invoice. If any premiums have been under-reported, you will receive an invoice for the additional amount due; if you have overpaid your premium, a credit or a refund will be issued.
How do I dispute final audit findings?
A policyholder or agent can submit a written dispute if they do not agree with the final audit findings. The dispute should include the specific reason(s) for the dispute, along with verifiable supporting documentation.
The policyholder should submit the undisputed portion of any additional premium generated by the final audit or 50 percent of the additional premium if the undisputed portion cannot be determined.
Disputes can be sent: AmFed, P.O. Box 1380, Ridgeland, MS 39158
Under reporting of payroll is considered insurance fraud.
If you should have any questions regarding the audit process or have any concern during an audit please call our office at 601.853-4949.