Guides

Workers’ comp audit guides for contractors

Plain-English help on the stuff that causes surprise audit bills — subcontractor COIs, class codes, owner caps, and overtime.

Underreporting Payroll to Lower Workers’ Comp: Why It Backfires

Shaving payroll or miscoding workers to cut premium is premium fraud — and the audit is built to catch it. Here’s how it’s detected and what it costs.

5 min read · Read →

Workers’ Comp for Seasonal and Temporary Workers (and Day Labor)

Seasonal, temporary, and day laborers usually still count for workers’ comp. Here’s how they affect your coverage and your audit, and how to keep them documented.

5 min read · Read →

Workers’ Comp Deposit Premium: What That Upfront Payment Is

The chunk you pay when a workers’ comp policy starts is the deposit premium. Here’s what it is, whether you get it back, and how to keep it from being inflated.

5 min read · Read →

How to Switch Workers’ Comp Carriers Without Getting Burned

Changing workers’ comp insurers can save money — or trigger penalties and a surprise audit. Here’s how to switch cleanly and what follows you to the new carrier.

5 min read · Read →

What to Do When a Subcontractor’s Worker Gets Hurt on Your Job

An injury on your site is stressful and time-sensitive. Here’s the step-by-step for when a subcontractor’s worker is hurt — and why their COI suddenly matters a lot.

5 min read · Read →

Who Sets Your Workers’ Comp Rates? NCCI and State Rating Bureaus

Your class codes, rates, and experience mod don’t come from your carrier — they come from a rating bureau. Here’s who NCCI is, the independent-bureau states, and why it matters.

5 min read · Read →

Pay-As-You-Go Workers’ Comp: Smaller Audits, Better Cash Flow

Pay-as-you-go workers’ comp bills premium on real payroll each pay period instead of an upfront estimate — so the year-end audit holds far fewer surprises. Here’s how it works.

5 min read · Read →

How Much Does a Claim Raise Your Workers’ Comp Premium?

A single claim can raise your workers’ comp premium for years through your experience mod. Here’s how the impact works and why frequency hurts more than size.

5 min read · Read →

What Insurance to Require From Subcontractors (and Put in the Contract)

Verbal promises don’t survive an audit or a lawsuit. Here’s exactly what insurance to require from subcontractors and how to write it into the agreement.

6 min read · Read →

Workers’ Comp for Out-of-State Employees and Jobs

Taking your crew across state lines? Your home-state policy may not cover the job. Here’s how multi-state workers’ comp works and the gaps to close first.

6 min read · Read →

Wrap-Up Insurance (OCIP/CCIP): How It Changes Subcontractor Coverage

On big projects, a wrap-up policy can cover everyone at once. Here’s what OCIP and CCIP mean, what they cover, and how to keep your audit from double-charging that payroll.

6 min read · Read →

Do You Need Workers’ Comp for Family Members Who Work for You?

Family members on the crew sit in a gray area — some states exempt them, some don’t. Here’s how workers’ comp treats family employees and how they show up at audit.

5 min read · Read →

Workers’ Comp vs. General Liability: What’s the Difference (and Do You Need Both)?

Workers’ comp and general liability cover completely different risks, and one never substitutes for the other. Here’s the difference and why contractors usually need both.

5 min read · Read →

Can You Get a Workers’ Comp Audit Refund? How Return Premium Works

Audits don’t only produce bills — they can produce refunds. Here’s when a workers’ comp audit owes you money and how to claim a return premium.

5 min read · Read →

How to Read a Certificate of Insurance (ACORD 25) Like an Auditor

A certificate of insurance packs a lot into one page. Here’s how to read an ACORD 25 the way an auditor does — and the lines that decide whether a sub is covered.

6 min read · Read →

When Does a Workers’ Comp Audit Happen? Timing and What to Expect

Wondering when your workers’ comp audit will land? Here’s the timing — when it’s triggered, how long after your policy ends, and how long the audit itself takes.

5 min read · Read →

Do You Need Workers’ Comp to Get a Contractor’s License?

In many states, proof of workers’ comp (or a valid exemption) is part of getting and keeping a contractor’s license. Here’s how it works and what happens if it lapses.

5 min read · Read →

Workers’ Comp Minimum Premium: Why Your Bill Has a Floor

Even a policy with almost no payroll has a price floor. Here’s what a workers’ comp minimum premium is, why it exists, and how to avoid overpaying on a small policy.

5 min read · Read →

Certificate Holder vs. Additional Insured: What Contractors Actually Need

“Certificate holder” and “additional insured” are not the same thing, and confusing them leaves you exposed. Here’s what each means and what to ask subs for.

5 min read · Read →

What Is a Waiver of Subrogation (and Why Your Contract Asks for One)?

Many contracts require a “waiver of subrogation” on workers’ comp. Here’s what subrogation is, what the waiver does, and why a GC asks subs for it.

5 min read · Read →

Monopolistic States: How Workers’ Comp Works Differently in ND, OH, WA, and WY

Four states run their own exclusive workers’ comp funds. Here’s what “monopolistic” means for contractors, why private COIs don’t work there, and the gap to watch.

5 min read · Read →

How to Fill Out a Workers’ Comp Audit Form (Voluntary / Mail Audit)

Got a self-audit or mail audit packet? Here’s how to fill out a workers’ comp audit form correctly so you don’t overpay — and the figures auditors most often get wrong.

6 min read · Read →

How to Lower Your Workers’ Comp Premium: 7 Levers Contractors Control

You can’t change the state rate, but you control more of your workers’ comp bill than you think. Seven practical levers — from class codes to subcontractor COIs.

7 min read · Read →

Do LLC Members and Corporate Officers Need Workers’ Comp?

LLC members and officers can often choose to be included or excluded from workers’ comp. Here’s how that election works, and why excluding yourself has a tradeoff.

6 min read · Read →

What Is a Ghost Policy? Workers’ Comp for Contractors With No Employees

A “ghost policy” lets a no-employee contractor satisfy a GC’s workers’ comp requirement without insuring themselves. Here’s how it works, what it costs, and its limits.

5 min read · Read →

What Counts as Payroll on a Workers’ Comp Audit? (More Than You Think)

Workers’ comp premium is based on payroll — but “payroll” includes more than base wages. Here’s what’s in, what’s out, and what you can legitimately exclude.

6 min read · Read →

Is a General Contractor Liable If a Subcontractor’s Worker Gets Hurt?

If an uninsured sub’s worker is injured on your job, you can end up responsible — the “statutory employer” rule. Here’s how it works and how a COI protects you.

6 min read · Read →

How to Read Your Workers’ Comp Audit Worksheet (Before You Pay It)

The audit worksheet shows exactly how your bill was built. Here’s how to read it line by line and spot the four overcharges before you pay.

6 min read · Read →

How Much Does Workers’ Comp Cost for a Small Contractor?

Workers’ comp cost comes down to payroll, trade, state, and claims history. Here’s how to ballpark it — and the hidden cost that blindsides small contractors at audit.

6 min read · Read →

Your First Workers’ Comp Audit: What to Expect as a New Contractor

First policy year ending? Here’s what your first workers’ comp audit looks like, why the bill can swing hard, and the documents to have ready so it doesn’t surprise you.

5 min read · Read →

How Are Workers’ Comp Premiums Calculated? The Formula, in Plain English

Workers’ comp premium isn’t a flat fee — it’s payroll ÷ 100 × class rate × experience mod. Here’s each piece of the formula and the levers you actually control.

6 min read · Read →

Experience Mod (EMR) Explained: What Drives It and How to Lower Yours

Your experience mod multiplies your entire workers’ comp premium. Here’s what an EMR is, what pushes it above 1.0, and the practical ways contractors bring it back down.

6 min read · Read →

Workers’ Comp Class Codes for Contractors: How They Work and Why They Matter So Much

Class codes decide your workers’ comp rate, and contractor trades span a huge range. Here’s how class codes work, why the “governing” class matters, and how miscoding costs you.

6 min read · Read →

Subcontractor or Employee? How Worker Classification Decides Your Comp Bill

Calling someone a 1099 subcontractor doesn’t settle it. Here’s the test auditors and states actually use, and why misclassification shows up as added payroll on your audit.

6 min read · Read →

Workers’ Comp Audit Dispute Letter: What to Include (with a Free Generator)

A vague “this seems too high” gets ignored. Here’s exactly what a workers’ comp audit dispute letter needs, point by point — plus a free tool that writes it for you.

5 min read · Read →

How to Collect (and Actually Track) Certificates of Insurance from Subcontractors

Collecting a certificate once isn’t enough — you have to track it against work dates and renewals. Here’s a simple system contractors can run, and how to automate the nagging.

6 min read · Read →

What Is a Workers’ Comp Premium Audit? A Contractor’s Plain-English Guide

Just got an audit notice? Here’s what a workers’ comp premium audit is, why it happens every year, what the auditor checks, and how to come out even instead of owing thousands.

6 min read · Read →

What Happens If You Don’t (or Can’t) Pay Your Workers’ Comp Audit Bill?

Ignoring a workers’ comp audit bill doesn’t make it go away — it can cost you coverage, your renewal, and land you in collections. Here’s what actually happens and what to do instead.

6 min read · Read →

How Far Back Can a Workers’ Comp Audit Go? (And Why “Three Years” Matters)

Carriers can often reopen and re-bill a workers’ comp policy years after it expired. Here’s how the lookback works and why you should keep sub COIs long after a job ends.

5 min read · Read →

Workers’ Comp Exemption Certificates: When a Sub Without Coverage Still Won’t Cost You

In many states a sole-proprietor sub can legally skip workers’ comp with an exemption certificate. Here’s how exemptions work and how to keep them from becoming your audit bill.

6 min read · Read →

Do I Need Workers’ Comp If I Have No Employees? (It’s More Complicated Than Yes or No)

If you’re a one-person shop you may not be required to carry workers’ comp — but you can still be charged for it. Here’s when you need it, when you don’t, and why your GC asks anyway.

6 min read · Read →

Paying Subcontractors in Cash? Here’s What It Does to Your Workers’ Comp Audit

Cash payments to subs don’t hide from a workers’ comp audit. Auditors reconcile to your bank records and 1099s, and undocumented cash often gets charged as your payroll.

5 min read · Read →

Do You Need Workers’ Comp for 1099 Subcontractors?

Paying a sub on a 1099 doesn’t make the workers’ comp exposure disappear. Here’s who needs coverage, and why it lands on your audit if they don’t have it.

6 min read · Read →

Workers’ Comp Audit Costs by State: Why the Same Sub Costs 5× More in One State

Workers’ comp rates vary up to ~5× across states. Here’s why the same uninsured subcontractor costs far more in some states — and what drives it.

6 min read · Read →

How to Dispute a Workers’ Comp Audit (and Recover Overcharges)

Got an audit bill that looks too high? You can dispute it. Here’s the step-by-step, what counts as a valid challenge, and the deadlines that matter.

6 min read · Read →

Why Your Workers’ Comp Audit Came With a Huge Bill — and Subcontractors Are Usually Why

Got a surprise workers’ comp audit bill? Uninsured subcontractors are the #1 cause. Here’s exactly how it happens and how to stop it.

6 min read · Read →

How to Prepare for a Workers’ Comp Premium Audit: A Contractor’s Checklist (2026)

A practical, contractor-focused checklist to prepare for your workers’ comp premium audit and avoid overpaying.

7 min read · Read →

Does a Certificate of Insurance Actually Protect You at Your Workers’ Comp Audit?

A certificate of insurance on file doesn’t automatically exclude a subcontractor. Here are the three conditions that decide it.

5 min read · Read →

Class Codes, Owner Caps & Overtime: 3 Ways a Workers’ Comp Audit Overcharges You

Surprise audit bills go both ways. Three common workers’ comp audit overcharges — misclassification, owner caps, and overtime — and how to catch them.

6 min read · Read →

Get the tool, not just the tips

One email when the connect-your-payroll version ships.