Premium Audit Required Documents

Helpful Required Documents Checklist:

Why must I provide two types of documents for the same information?

Two types of documents are required to complete your audit: A primary source showing transactions or payments during your policy period and a secondary source, such as a tax document that is used to verify the primary source.  

  • The primary source document should match as closely to your policy period as possible. For payroll reports, you can round to the first of the month (it is acceptable to deviate from the policy period by 30 days).  For example, if your policy period is 6/15 - 6/15 you can provide payroll for 7/1 to 7/1 or 6/1 to 6/1.   
  • The secondary source documents may not line up with your policy period. If your policy period falls in the middle of the month, simply provide the most recent four filed quarterly (or annual) tax reports that most closely aligns with your policy period.

How can I provide documents?

If your audit is in-person please have records available and accessible to the auditor at the site of the audit. It is not required to print the documents.

If you are completing your premium audit online or on paper, you may need information from your source documents to input into the form. You are required to submit verification documents. These can be uploaded on the secure website, faxed or mail.  See the Contact Us section for further instructions.

What documents do I need to provide?

The documents you need vary based upon the types of policies you have purchased and the basis upon which the premium for these policies was established: sales, payroll or other. If completing your audit online, once registered, you will be informed of the specific documents needed. If your audit is in person, your appointment confirmation letter will list required documents. If unsure, please contact Customer Service or your Agent. In general:

Below is a guide to help determine which documents you will need to have available for your audit:

Workers Compensation: Applies to all Payroll-based Policies

Payroll information is needed for all Owners, Officers and Employees.

Provide one source record and one or more of the following verification records for your policy period:

Source Documents:

If you use a payroll vendor (i.e. ADP®, Paychex®)

  • Most reports available in these vendor tools provide sufficient payroll information*
  • Contact your auditor with specific reporting questions

If you use an internal reporting application (i.e. QuickBooks®, PeopleSoft®)

  • Most reports available in these vendor tools provide sufficient payroll information*
  • Contact your auditor with specific reporting questions

If you use an accountant or bookkeeping service

  • Most services will be able to provide a payroll report that will be sufficient for the audit*

If you do not use any of the above the following documents will be required:

  • Payroll Summary or Employee Earning Report
  • Check Register
  • Disbursement Ledger

*Please see Helpful Tips for learn about information needed in payroll reports.

Verification Documents:

If you have employees and file any of the following:

  • Quarterly 941 Federal Tax Returns
  • Quarterly DE-9 (Required for CA employees)
  • W-2/W-3 Wage and Tax returns
  • State Unemployment Wage Reports

If you do not file any of the above:

  • For a Sole Proprietor, the Profit or Loss (Form 1040) Schedule C pages 1 and 2
  • For a Partnership, U.S. Partnership Return of Income (Form 1065) Page 1 and 1125-A
  • For a Corporation, U.S. Corporation Income Tax Return (Form 1120) Page 1 and 1125-A

AND WHEN APPLICABLE:

  • Section 125 Contributions (CA Only)
  • Certificates of Insurance (COI) for subcontracted labor1

General Liability: Payroll-based Premiums

Payroll information is needed for all Owners, Officers and Employees.

Provide one source record and one or more of the following verification records for your policy period:

Source Documents:

If you use a payroll vendor (i.e. ADP®, Paychex®)

  • Most reports available in these vendor tools provide sufficient payroll information*
  • Contact your auditor with specific reporting questions

If you use an internal reporting application (i.e. QuickBooks®, PeopleSoft®)

  • Most reports available in these vendor tools provide sufficient payroll information*
  • Contact your auditor with specific reporting questions

If you use an accountant or bookkeeping service

  • Most services will be able to provide a payroll report that will be sufficient for the audit*

If you do not use any of the above the following documents will be required:

  • Payroll Summary or Employee Earning Report
  • Check Register
  • Disbursement Ledger

*Please see Helpful Tips for learn about information needed in payroll reports.

Verification Documents:

If you have employees and file any of the following:

  • Quarterly 941 Federal Tax Returns
  • Quarterly DE-9 (Required for CA employees)
  • W-2/W-3 Wage and Tax returns
  • State Unemployment Wage Reports

If you do not file any of the above:

  • For a Sole Proprietor, the Profit or Loss (Form 1040) Schedule C pages 1 and 2
  • For a Partnership, U.S. Partnership Return of Income (Form 1065) Page 1 and 1125-A
  • For a Corporation, U.S. Corporation Income Tax Return (Form 1120) Page 1 and 1125-A

AND WHEN APPLICABLE:

  • Section 125 Contributions (CA Only)
  • Certificates of Insurance (COI) for subcontracted labor1

General Liability: Sales-based Premiums

Provide one source record and one verification record for your policy period:

Source Documents:

  • Sales Journals
  • Income Statements
  • Profit & Loss Statements

Verification Documents:

  • State Sales Tax Returns
  • Income Statements
  • General Ledger
  • Federal Tax Returns

General Liability: Other (Non-Sales or Non-Payroll Based)

You will be asked to provide information on measurements specific to your type of business. Please refer to the General Liability - Other Premium Basis for guidance as source records will vary based upon your business.

  • If completing your audit online (ePHR), once registered, you will be instructed to provide certain documents.
  • If your audit is in person the Appointment Coordinator and/or Auditor will provide assistance regarding the documents you will need to provide.
  • If you are completing a paper Policyholder Report please contact Customer Service for assistance.

Garage Liability: Garage Auto Repair

Source Documents:

Please provide a payroll report that includes the following for each owner, officer and employee during the policy term (include those who may have been terminated during the policy period).

  • Employee Name
  • Description of Work performed
  • Date work started for this policy period
  • Date work ended for this policy period
  • Average hours worked during this policy period

Payment Information may be provided to the nearest month within your policy term (for example: your policy term is 3/15-3/15, detail can be provided 3/1-3/1 or 4/1-4/1).

If available please provide the payment information in an Excel spreadsheet.

Verification Documents

Please provide the following tax forms for your policy period:

  • Last four filed State Quarterly Wage Reports

If you do not file State Quarterly Wage Reports please provide:

  • Last filed Federal Income Tax return

Garage Liability: Auto Dealership

Provide a report that lists all employees during the policy period, including those who may have been terminated:

  • Hire and termination dates
  • Job title and duties
  • Management staff and their duties
  • Drivers (include dealer trade, runners, parts delivery, customer shuttle, valet, etc.)
  • Employees that work less than 20 hours per week
  • Employees provided a vehicle

Additional information needed:

  • Contract labor hired during the policy term - provide their name, amount paid, dates worked and duties
  • Non-employees who were provided a vehicle
  • List dealer plates and who they are assigned to
  • Last four filed Form 941 - Employer's Quarterly Federal Tax Return or State Quarterly Wage Reports

Employee information may be provided to the nearest full month within your policy term (for example: your policy term is 3/15-3/15, detail can be provided 3/1-3/1 or 4/1-4/1).

If available please provide the payment information in an Excel spreadsheet.

Commercial Auto Policy

Source Documents:

  • Provide a vehicle listing in Excel format, if possible, including year, make, model, and VIN for registered and non-registered vehicles. Please include the date each vehicle was added or removed if the change took place during your policy term.

Verification Documents:

  • Not required at time of audit. Titles and registration may be requested by your auditor after review of the vehicle listing.
1 Definitions and requirements may vary by state. Contact your Agent or Producer with questions concerning your particular situation. Additional tests of independent status may apply.