Auditing your policy

Every Pinnacol Assurance policyholder is audited annually — but rest assured, it's fairly painless if you're prepared. Audits ensure that you pay no more and no less premium than you should, based on your actual (not estimated) payroll levels. Audits can even result in a refund to your business.

Complete an audit report

What to expect

In addition to accuracy, our auditors' goals are to help you understand:

  • How classification codes are determined for your business and workers
  • How your premium is calculated
  • How to forecast your future premium costs

Audits also help ensure that no other business in your industry has an unfair advantage because of incorrect classification or payroll assignments.

During an audit, the following categories of information will be reviewed:

  • Ownership status
  • Business operations
  • Duties of employees
  • Payments to subcontractors

Audit types

Pinnacol conducts three types of audits:

  • Self-audit — Just follow our step-by-step instructions to complete the audit yourself, at your convenience. Self-audits can be submitted online — the fastest, easiest way to complete an audit — or mailed to Pinnacol.
  • Field audit — One of our auditors will visit your place of business to perform an on-site audit. Field audits can usually be completed in two hours or less.
  • Office audit — This audit is conducted by appointment at Pinnacol's office. Call (303) 361-4000 or (800) 873-7242 for an appointment.

Documents to have ready

To ensure a smooth and speedy audit, please have the following documentation on hand:

Employee records

  • Unemployment insurance tax reports
  • 941 or 943 federal tax returns, whichever you submit
  • Payroll records for the audit period
  • Individual earnings records

Payments to workers outside of payroll

  • Detailed check register and/or cancelled checks
  • Cash payment journal

Subcontractor records

  • Reports that show payments to subcontractors
  • Proof of workers' compensation insurance for subcontractors
  • Documentation to confirm the status of independent contractors

For more information, view our Auditing Your Policy flyer in English or Spanish.