What happens at a workers comp audit for a tower contractor?

Workers compensation audits for tower contractors review your actual payroll, employee classifications, and subcontractor insurance certificates to determine if the premium you paid matches your actual exposure. The auditor will examine: total payroll by employee, job duties for each employee to verify class code assignment, records of any employees who cross between ground and climbing duties, certificates of insurance for all subcontractors used during the policy period, and 1099 payments to uninsured subcontractors. The most common audit adjustments for tower contractors are: (1) reclassification of ground employees to climbing codes because the auditor found they performed any elevated work, (2) inclusion of uninsured subcontractor payments as payroll because the sub did not carry their own WC, and (3) inclusion of 1099 climber payments as employee payroll. Audit adjustments can result in additional premium bills of $20,000-$100,000 or more. To prepare, maintain clear job descriptions, enforce strict separation between climbing and ground duties, collect certificates from all subcontractors before they start work, and keep organized records of all payments to 1099 workers along with their insurance documentation. Request an interim audit at six months if your operations have changed significantly from the estimate.