How do I prepare for an insurance audit as a tower contractor?

Insurance audits (primarily workers compensation and GL) examine your actual payroll, operations, and subcontractor usage against what was estimated at policy inception. Preparation includes: (1) Organize payroll records by employee with clear job title and duty descriptions supporting class code assignments. (2) Separate overtime pay, as WC auditors should only include straight-time equivalent (NCCI rules exclude overtime premium for most states). (3) Compile certificates of insurance for every subcontractor used during the policy period. Missing certificates result in subcontractor payments being added to your payroll at the highest applicable rate. (4) Gather all 1099 records with corresponding insurance documentation. (5) Document revenue by project type if your GL is rated on receipts. (6) Have your experience mod worksheet available. (7) Prepare officer payroll documentation (excluded/included varies by state). Common audit pitfalls for tower contractors: ground crew members who occasionally climbed being reclassified to climbing codes, 1099 climbers without certificates being added at $25-40 per $100, overtime premium being incorrectly included, and revenue from equipment rental being included in GL basis when it should be excluded. Request an estimated audit calculation from your broker before the formal audit so you can identify and dispute discrepancies proactively.