Roofers Insurance Audits: What To Expect And How To Prepare

If you’re a roofing contractor, the words “premium audit” can sound intimidating. In practice, audits are routine—and with the right prep, they’re painless. Insurers use them to true‑up your Roofers Insurance premiums (especially General Liability and Workers’ Comp) to your actual exposure—things like payroll, subcontractor cost, and receipts—so you’re paying the right amount for the risk you run.

This guide explains what auditors look for on roofing accounts (including open‑roof and hot‑work realities), what to gather, and roof‑specific tips to avoid extra charges.

What Is A Roofers (GL/WC) Insurance Audit?

A premium audit is a post-term review of your records—payroll, gross sales/receipts, subcontractor payments/COIs, and classifications—to verify that your policy aligns with your operations. For contractors, GL is commonly rated based on payroll (not just sales), and audits reconcile estimated numbers with actual results. 

Timing: Most carriers schedule audits shortly after the policy ends—typically 30–90 days—and may conduct them online, by phone, or on-site, depending on the premium size and state rules.

Why It Matters (for Roofers)

• Fair premiums: If payroll/sub costs ran higher than estimated, you’ll owe additional premium; lower exposure can trigger a return—unless your policy is written with a Minimum & Deposit (M&D) that allows only upward adjustments.
• Adequate coverage: Accurate exposure helps keep limits/endts aligned with your actual work.
• Contract & permit compliance: Clean audit records (and valid sub COIs) prevent costly “uninsured sub” charges.

What To Expect During The Audit

1. Notification – Usually, soon after expiration, you’ll be invited to complete an online, phone, or field audit.
2. Questionnaire & records request – Payroll detail by classification, P&L/receipts, subcontractor list with COIs, and any notes on operations.
3. Document review & Q&A – Auditor compares actuals vs. your estimate; may ask how you divide roofing vs. clerical payroll, torch use, coatings, etc. (GL rating for contractors is typically payroll‑based; overtime handling follows manual rules.)
4. Results – You’ll receive an audit summary and any premium adjustment (debit or credit—unless an M&D form limits credits).

Heads-up: If you don’t complete the audit, carriers can apply non-compliance charges or cancel your policy; most policies also allow for an audit/re‑audit up to three years back. 

Key Documents & Records To Gather

Category	Examples auditors accept
Payroll Records	Gross payroll by role (field vs. office), overtime (show straight‑time portion), bonuses; quarterly tax forms 941/940; W‑2/W‑3.
Sales/Receipts	P&L, income statement for the policy period; job‑cost summaries by project.
Subcontractors	COIs (GL and WC) for every sub; contracts with hold harmless/AI/PNC language; payments (1099). No COI = you are charged as if uninsured.
Employee Classifications	Role descriptions and time split (roofing vs. office/sales); locations. For GL, confirm the correct contractor class; for WC, confirm the proper roofing class and include straight‑time only for OT.
General Ledger	Cash disbursements, check registers, GL summaries supporting totals.

Pro Tips To Be Audit‑Ready (Roofing Edition)

• Track payroll accurately: For contractors, GL typically uses payroll as the exposure base; set up your books to separate field vs. clerical and capture OT at straight‑time where applicable in the manual.
• Collect sub COIs before site access (and refresh each renewal). Missing COIs for either GL or WC are routinely charged at audit.
• Know your endorsements: Many roofing GL policies include Open‑Roof and Hot‑Work conditions. Auditors and underwriters may confirm how often you perform tear‑offs/torch work and whether procedures are in place; keep your SOPs handy.
• Document safety: OSHA requires fall protection at ≥6 ft on low‑slope and steep roofs—training logs, toolbox talks, and equipment checks show strong controls if questions arise.
• Prepare for hot‑work questions: Many owners and carriers expect NRCA CERTA torch training and NFPA 51B‑consistent fire watch (≥ 60 minutes, with added monitoring where hazards warrant). Keep permit logs.
• Ask about your audit type: Standard (two‑way) audits can return premium if exposure drops; some E&S policies use Minimum & Deposit forms that allow only additional premium (no refunds). Budget accordingly.

Common Triggers For A Mid‑Term Audit Or Adjustment

• Rapid payroll/revenue growth or new crews
• Heavy use of subs without COIs
• New services (e.g., adding torch‑down or roof coatings) that change exposure
• Multiple/large claims in terms
• Opening additional locations or a shop yard

(If you see one coming, tell your broker to adjust now—don’t wait for the audit.)

After The Audit: Review & Respond

• Read the summary carefully and request the auditor’s worksheet if anything appears to be incorrect.
• Dispute promptly (misclassification, wrong totals, missing COIs that you can now supply) within the carrier’s time limits.
• Pay balances (additional premium usually billed post‑renewal); credits apply when allowed by your policy’s audit/“minimum earned” terms.
• Improve next year: Use findings to refine job-cost coding, sub-vetting, and record-keeping.

Frequently Asked Questions

What counts as payroll in an audit?

For WC, payroll includes wages, bonuses, vacation/sick pay,, and overtime at straight-time; similar principles inform GL payroll ratings for contractors. Your auditor will reference the applicable manual. 

Are BOPs audited?

Many GL and WC policies are auditable; some BOPs include audit provisions, while others don’t—always check your policy’s Conditions section. 

What happens if a sub’s COI is missing?

Carriers typically treat that sub as uninsured at audit and charge a premium to your policy. Keep current GL and WC COIs on file for every sub. 

How soon after expiration will I hear about the audit?

Commonly 30–90 days, though carriers differ; some states or accounts require a physical audit.

Do audits ever lead to refunds?

Yes—on standard (two‑way) audits. However, Minimum & Deposit endorsements (common in surplus lines) may only allow additional premium and no return below the minimum. Know what you have before you budget. 

Audit Your Roofers Insurance — Save Time & Money

A premium audit isn’t an intrusion—it’s a chance to align cost with reality and prove you run a tight operation. Keep payroll clean, collect sub COIs without fail, document open‑roof and hot‑work controls, and know your policy’s audit terms. You’ll cut surprises, keep bids competitive, and strengthen your renewal story.

Need a contractor‑savvy partner (and checklists you can use today)? Visit Roofers Insurance US for roofers‑specific guidance and help structuring a policy that audits cleanly year after year.