Premium audit automation that closes audits on actual figures, not estimates
Audits closed on actual figures, not estimates, with every class change explained.
See one case, screen by screen ↓Software that runs the premium audit after a policy year ends: requesting the insured’s records, reconciling payroll, sales and subcontract cost to class codes, rating the audited exposure and producing the audit and the bill. Premium Audit Automation adds agents that chase the records, tie the payroll to the 941s, test class codes and check certificates, so the auditor starts from a cited draft.
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Workers’ compensation and contractor general liability are written on an estimate of payroll, sales or subcontract cost. The premium is only settled at audit, after the policy year ends. With most audits now done virtually, by phone or by mail, the auditor depends on records the insured sends — payroll registers, Forms 941, timecards, ledgers, certificates — and they arrive in pieces, over weeks, by email and phone.
Then the reconciliation is by hand: re-keying the register, tying it to the 941s, reading titles to see who is really in the field, matching every subcontractor payment to a certificate. Audits that never get their records close on the estimate. Field supervisors reported in 8810 and subcontractors paid after their certificate lapsed are where earned premium is given away.
Estimated split of auditor hours for a virtual workers’ compensation and general liability audit, by hand and with the solution.
Six agents chase the records, tie the payroll and suggest the class codes; the premium auditor moves the payroll and signs.
Brightwater Framing & Carpentry, Knoxville, Tennessee: workers’ compensation and general liability with Kestrel Ridge Mutual, policy year 1 Jul 2025 – 1 Jul 2026, experience mod 0.94, virtual audit. Day 103 of 120 since expiration. Here is the audit, screen by screen, in the working solution.
Renata’s worklist shows 14 open audits from policies that expired June to October: 7 waiting on records, 2 to reconcile, 3 ready to sign, 1 waiting on her decision and 1 past 120 days with a site visit booked. Brightwater Framing has all 19 of 19 records in, and findings to decide.
“Two attempts logged · your decision” — Nolichucky Tree Service, where only Renata can decide on the noncompliance charge.
The audit notice went out on 2 July with the 11 records needed. Reminders on 16 July and 30 July were logged as documented attempts 1 and 2, each naming the records still missing and the charge. Then the targeted asks: the timecards again with job numbers, page 2 of the Q2 2026 Form 941, three missing certificates, and Megan Shore’s 46 “yard” hours. Tammy Lindqvist answered the last one on 9 October.
“All records arrived; no charge applies. Only a person can apply one.”
47 employees and 1,224 pay lines read. Line 2 of each Form 941, Q3 2025 to Q2 2026, against the register’s gross wages: $3,548,200 on both sides, $0.00 apart. The $61,800 of overtime premium is shown separately on the register and Tennessee allows the exclusion, so reportable payroll is $3,486,400. Eight checks passed, from headcount to officers.
Never changes the insured’s figures — it reports the difference, with page and line.
One column per class code — 5403 Carpentry NOC, 5645 Residential carpentry, 5437 Trim and cabinets, 5445 Wallboard, 5606 Executive supervisor, 8810 Clerical office, 8742 Outside sales — each with its rate, a twin bar and payroll blocks by job title. The deposit was $257,490 on $3,005,000 of estimated payroll. As the insured coded it, the audit stands at $287,368: +$29,878. One block in 8810 glows amber: “Title says field”.
Dustin Mercer, Lead carpenter, $78,400. Kyle Brandt, Framing foreman, $74,200. Jorge Villanueva, Carpenter II, $57,400. All reported in 8810, with 93%, 91% and 89% of their hours on job numbers and overtime on site days — and the 2024–25 audit already noted it. 8810 needs exclusively clerical work in a separate office, and cannot be split. The classifier suggests 5403 at confidence 0.94.
It suggests; it never moves payroll — the auditor does.
Renata drags the block from 8810 at $0.21 into 5403 at $9.84. Every bar, both column totals and the premium band recount at once: workers’ compensation +$19,009, general liability +$2,646, because clerical payroll is not rated for GL and carpentry is. The move is logged with her name and the reason, and can be undone until she signs.
“$210,000 moved 8810 → 5403 · additional premium now +$51,533”
Fourteen subcontractors, 57 payments, each matched to a certificate in force on the payment date. Thirteen were covered every time; Big Ridge Painting is a sole proprietor with a verified state exemption. Ridgecrest Drywall & Trim’s certificate ran 15 Feb 2025 – 14 Feb 2026 and was renewed 5 May 2026. In between, Brightwater paid it $148,000 on 7 invoices, $96,000 of it labor.
Never treats an expired certificate as current; when labor is not shown, it flags the whole price.
Renata adds Ridgecrest’s $96,000 of labor to 5445 Wallboard installation and the $148,000 cost to general liability: workers’ compensation +$7,580, GL +$1,450. Megan Shore stays in 8810 — the insured’s reply says she logged deliveries from the front-office window and never went into the yard, and the reply is on file. Additional premium: +$60,563.
Workers’ compensation by class after the 0.94 mod, general liability by class and basis, and one plain line per change with its citation: +$29,878 for payroll above the estimate, +$21,655 for the three employees moved to 5403, +$9,030 for the uninsured subcontractor, $0 for Megan Shore. The letter to Ms. Lindqvist explains each change in plain words.
“Draft prepared 07:20 · not a signature.”
Audited premium $318,053 against the $257,490 deposit. Renata signs and the moves lock. Because +$60,563 is above her $25,000 limit, the audit routes to Douglas Whitfield, premium audit manager, for the second signature. Marcus Bell in billing invoices only signed audits, and Priya Raman, the underwriter, gets the audited class mix for the May renewal.
“Signed by Renata Okafor · moves are now locked”
The same audit, seen by the five people who carry it — what their week looked like, and what it looks like now.
Six agents chase the records, tie the payroll and suggest the class codes; the premium auditor moves the payroll and signs.
Sends the audit notice and the record list for the insured’s classes, reminds on day 14 and day 28 as documented attempts, asks targeted questions and logs every reply.
Reads payroll registers, Forms 941 and timecards; ties the register to the 941s by quarter and separates the overtime premium where the state allows it.
Reads each employee’s title, timecard job numbers, overtime pattern and prior audits, tests the standard exceptions and suggests the class code the work belongs in, with evidence and confidence.
Matches every subcontractor payment to a certificate covering its date, reads the labor share from the invoices and checks state exemption registrations.
Builds general liability exposure by the policy’s rating bases: carpentry payroll, supervisors and uninsured subcontract cost.
Rates the audited exposure by class, applies the experience mod, writes the reason for every change and drafts the letter to the insured.
Moves payroll between codes and signs. The agents propose; a named person decides.
The auditor can ask about any employee, class code, subcontractor or premium in plain words — or say what to send the insured. Every answer points to its record.
Why are Dustin Mercer, Kyle Brandt and Jorge Villanueva not clerical?
Three things point to the field. Their payroll titles are Lead carpenter, Framing foreman and Carpenter II. On the timecards, 5,754 of 6,324 hours — 91% — are booked to construction jobs, and their overtime falls on site days. And 8810 needs exclusively clerical work in a separate office, with no split; the 2024–25 audit already told the insured. Moving their $210,000 to 5403 adds $19,009 to workers’ compensation and $2,646 to general liability.
Which subcontractors were paid while uninsured?
One of 14. Ridgecrest Drywall & Trim: its certificate ended 14 Feb 2026 and the renewal starts 5 May. Brightwater paid it $148,000 on 7 invoices in between, of which $96,000 is labor. The other 13 were covered on every payment date; Big Ridge Painting is a sole proprietor with a verified exemption.
What does Brightwater owe if I accept both findings?
$60,563 additional in all: $29,878 from payroll above the estimate, $21,655 from the class move and $9,030 from Ridgecrest. Workers’ compensation goes from a $226,095 deposit to $278,957, general liability from $31,395 to $39,096. That is above your $25,000 limit, so Douglas Whitfield co-signs.
Ask Tammy for the three job descriptions before I sign
Drafted and sent from the audit file to Tammy Lindqvist, asking for written job descriptions for the three employees and the winter office days she mentioned, by 23 October. Her 9 Oct reply says they do estimates and ordering from the office in winter, but 91% of their hours are on jobs, and 8810 cannot be split. The finding stays open until you decide.
13 screens from the working solution, on its sample data. Pick one to see it large.
The clock, the reminders, the limits and the class-code tests are settings, changed with the audit manager’s approval.
| Setting | Default | Choose from |
|---|---|---|
| Target from expiration to signed audit | 120 days | Any number of days |
| Documented reminders | Day 14 and day 28 | Each names the records and the charge |
| Noncompliance charge | Auditor decides | Only a person applies it, after two attempts |
| Second signature above | $25,000 | Additional or return premium · co-signer Douglas Whitfield |
| Tell underwriting when a class is short by | $100,000 | On the renewal estimate |
| Job title classifier | Finding at 0.85 · ask the insured at 0.60 – 0.85 | Timecard job numbers and prior audits on or off |
| Standard exceptions tested | 8810 · 8742 · 8820 · 8748 | Exclusively clerical or sales duties, separate office, no split |
| Overtime premium | Excluded when shown separately | Not in PA · DE · NV |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample audit data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (Ward Group premium audit study, 2014 — 1.7% net additional commercial-lines premium; NCCI Item B-1429 and endorsement WC 00 04 24 — two documented attempts). Rates in the example are illustrative. People and companies named on this page are fictional — characters and sample data in the working solution.
Software that runs the premium audit after a policy year ends: requesting the insured’s records, reconciling payroll, sales and subcontract cost to class codes, rating the audited exposure and producing the audit and the bill. Premium Audit Automation adds agents that chase the records, tie the payroll to the 941s, test class codes and check certificates, so the auditor starts from a cited draft.
The Job title classifier reads each employee’s payroll title, the share of timecard hours on job numbers, the overtime pattern and prior audits, and tests the standard exceptions such as 8810 and 8742 strictly. Above 0.85 confidence it raises a finding with evidence; between 0.60 and 0.85 it asks the insured. The auditor decides.
Yes. The Subcontractor certificate checker matches every payment to a certificate in force on its date and checks state exemption registrations. When a payment is uncovered it reads the labor share from the invoices, or flags the whole price when labor is not shown, for the auditor to add.
No. The Record requester logs two documented attempts, each naming the records still needed and the charge, but only a person applies the charge.
Yes — virtual, phone, mail and physical audits all sit on the same worklist. The insured gets one record list, exact follow-up questions and an upload link, and every reply is kept on the audit file.
Yes. Agents suggest and draft; only the auditor moves payroll between class codes and signs. Every move is logged with its reason and can be undone until signature, and above $25,000 of additional or return premium the audit manager co-signs.
Yes. The target days to a signed audit, reminder days, the second-signature limit, when to tell underwriting, classifier thresholds, standard-exception tests and overtime rules by state are all settings, changed with the audit manager’s approval.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your record lists, rating tables, report and letter templates and a sample of past audits — and it goes live once every quality gate has passed. We will walk you through it on your own audits first.
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1-min demoWe’ll run Premium Audit Automation on a sample of your own closed audits.