Contractor Profit & Loss Audit

Workers' Compensation Insurance Audits

Workers' compensation insurance premiums are calculated based on your actual payroll expenses, which are verified through profit and loss audits. Insurance carriers conduct annual audits to ensure premium accuracy and identify any discrepancies between estimated and actual payroll costs.

General Liability Premium Calculations

General liability insurance premiums are often based on your gross receipts or completed operations value, both of which are documented in your profit and loss statements. Accurate P&L audits ensure you're paying the correct premium amount and help avoid year-end premium adjustments.

• Gross receipts include all revenue from construction activities
• Completed operations value reflects finished project values
• Subcontractor expenses may be excluded from certain calculations
• Material costs might be treated differently based on policy terms

Commercial Auto and Equipment Coverage

Vehicle and equipment insurance costs are influenced by business revenue and equipment values shown in your P&L statements. Higher revenue often correlates with increased vehicle usage and equipment needs, affecting premium calculations and coverage requirements.