What is Premium Audit?

A premium audit is designed as a service to you that ensures you pay the appropriate premium. The primary purpose of the audit is to calculate your final premium. Premium audits are typically performed on Workers Compensation, General Liability and some Automobile policies.

Types of Audits

Mail Audit

You’ll be asked to enter premium base (ie Payroll/Sales) data on a form that we send to you in the mail. We will also ask for supporting documentation including but not limited to: 941 Tax Reports, Profit & Loss Statement, and Certificates of Insurance for Sub-Contractors.

Phone Audit

A form will be sent to you in advance and a representative will contact you via phone to review the premium base and classifications on your policy. The representative will ask that you forward supporting documentation via e-mail, fax or through the mail.

Physical Audit

During a Physical or Remote Audit, you will be requested to provide us copies of electronic versions of source records for you sales, payroll, disbursements, etc.. that would be requested if someone was on site doing the audit.   You will also be interviewed by the audit via phone/zoom to discuss your business operations, employee duties, and any other pertinent information regarding your business operations

How To Prepare For Your Audit


Understand that if you fail to comply with a premium audit your policy will be adjusted with estimated exposures (sometimes as much as 200%) that are likely much higher than your actual exposures.


Our contract with you gives us the right to review all records that relate to your policy. These records include (but are not limited to): ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records and programs for storing and retrieving data. We do not share this information with anyone outside our organization and it is strictly used to determine the proper premium due for the coverage being provided.


Work with your agent to set accurate payroll/sales projections. Most audits with additional premiums are a result of setting estimated exposures too low.


If you use a sub-contractor and you do not obtain a Certificate of Insurance that sub-contractor will be charged as an employee under your policy. Taking the time to obtain a Certificate when you hire a sub makes the audit process easier.


Keeping accurate records will ensure that you pay the lowest possible premium. When auditors can’t determine information they estimate or use the highest rated codes which means higher premiums for you. By keeping clear records you’ll make sure that you pay the most competitive premium.

Affiliated Vendors

CWG Insurance utilizes vendor relationships to complete premium audits in addition to our in-house staff. CWG works with the following Premium Audit Vendors. If a company not listed below attempts to contact you, please call us at 1-800-235-2942.

  • Insurance Audit Services
  • AFIRM Solutions

SmartPay – A More Convenient Way to Pay Your Workers’ Compensation Premium

CWG has partnered with SmartPay Solutions, a leader in pay-as-you-go solutions, to bring you improved flexibility in how you pay your premium. SmartPay secure web service will allow you to pay your workers’ compensation premium on your payroll cycle and based on your actual payroll, so the premium paid more accurately reflects your business activity.

How Does It Work?

Once you have chosen SmartPay as your billing method, you will receive an invitation to register on the SmartPay secure website. Upon registration, you will be required to upload your payroll file each pay cycle which will, in turn, generate a premium and email you an invoice.

The premium owed will then be pulled from your bank account via electronic funds transfer (EFT) in a few days. A premium audit will be completed a the end of each policy year.

You can enroll at the start of your first or next policy cycle. Simply contact your agent to request that you want to enroll in SmartPay. A SmartPay administrator will then contact you to begin your registration process.

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Benefits of Pay-As-You-Go

► More accurate premium invoices based on your actual payroll
► Reduced variability between the premium paid and audit results
► Payments follow your payroll schedule and will be drafted via Electronic Funds Transfer (EFT)
► No deposit premium required with this billing option
► SmartPay accepts all types of payroll files including Quick Books, Paychex, and ADP
► SmartPay also accepts personalized payroll files, or you can also download an Express Excel Template

Let's Talk 1-800-235-2942