Masonry Contractor Insurance Audits: What Business Owners Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Insurance audits are one of the most misunderstood parts of masonry contractor business insurance. Many contractors are caught off guard by unexpected premium increases, audit bills, or requests for additional documentation — often months after a policy starts.
Understanding how insurance audits work can help masonry business owners avoid surprises, stay compliant, and control costs. This guide explains what insurance audits are, why they happen, and how to prepare — plus how Wexford Insurance can help you manage them more smoothly.
What Is an Insurance Audit?
An insurance audit is a review conducted by your insurance carrier to verify that the information used to price your policy matches your actual business activity. Audits commonly apply to:
Because masonry work involves physical labor, payroll-based premiums, and jobsite risks, audits are standard in the industry.
Why Masonry Contractors Are Audited
Insurance companies audit masonry contractors to confirm:
Actual payroll vs. estimated payroll
Employee job classifications
Use of subcontractors
Gross receipts or sales
Changes in operations during the policy period
Masonry contractors often experience fluctuations in crew size and revenue, which makes audits especially important for accurate pricing.
Types of Insurance Audits You May Face
Workers’ Compensation Audits
These are the most common. Insurers review payroll records, job duties, and employee classifications. Misclassification can lead to higher premiums or back charges.
General Liability Audits
Carriers may verify gross revenue, job types, and subcontractor usage — especially for commercial masonry projects.
Physical vs. Virtual Audits
Audits can be conducted:
Online or by phone
Through submitted documents
In person at your business location
Common Audit Mistakes That Cost Masonry Contractors Money
Many audit issues happen due to avoidable errors, such as:
Underreporting payroll
Misclassifying laborers or supervisors
Paying uninsured subcontractors
Missing certificates of insurance
Not separating clerical vs. field employees
According to the National Council on Compensation Insurance (NCCI), incorrect job classification is one of the leading causes of audit disputes in construction trades.
How to Prepare for a Masonry Insurance Audit
To reduce stress and prevent premium surprises:
Keep accurate payroll records year-round
Track subcontractor payments separately
Collect certificates of insurance from all subs
Use consistent job descriptions
Notify your broker if operations change
Strong documentation helps audits close faster and more favorably.
How Wexford Insurance Helps Masonry Contractors
Working with the right insurance partner makes audits far easier. Wexford Insurance specializes in contractor insurance and helps masonry business owners by:
Reviewing applications before submission
Ensuring proper job classifications
Preparing clients ahead of audits
Assisting with audit disputes and corrections
Helping reduce unexpected premium increases
