Workers' Comp Audit Prep

Walk into your workers' comp audit with nothing to chase.

Every 1099 contractor you can't prove was insured becomes your premium at audit time. 1099Policy puts workers' comp in each contractor's name, issues the COI automatically, and archives the full record — so when the carrier's auditor arrives, the evidence is already organized.

See how it works →Book a walkthrough
Workers' CompFractional InsuranceCOI ReviewAudit Trail
What it does

Three parts, one clean audit.

Audit prep isn't a single feature — it's coverage, proof, and records working together so the auditor's questions are already answered.

WC in the contractor's name

Per-engagement statutory workers' comp across 46 states + DC, issued in the contractor's own name and entity. They're insured on their policy — so their pay never folds into your audited payroll.

A COI for every engagement

An ACORD 25 certificate is generated the moment coverage binds, with your entity named as additional insured. No year-end scramble to collect proof from people who've moved on.

An archive that survives the audit

Every certificate, contractor, and dollar of pay is retained indefinitely and exportable in one click — the exact record an auditor asks for, already assembled.

Why audits hurt

Uninsured contractors are charged to you.

At a workers' comp premium audit, the carrier reviews what you paid to every 1099 and subcontractor. Anyone who can't produce a valid certificate of their own coverage is treated as your employee for premium purposes - and you're charged WC premium on their full pay at your governing class code.

That's the line item that turns a routine audit into a five-figure true-up. The fix isn't better spreadsheets at year-end. It's making sure each contractor carries coverage in their own name, with the certificate already on file.

See how in-name coverage works
[ CONTRACTOR PAYMENTS // RECONCILED ]
$128,400
Total paid to 1099 contractors this audit period
VERIFIED_EXCLUSION

CERTIFICATE OF INSURANCE

PRODUCER
Summit Risk Partners
101 Mission St, Suite 600
San Francisco, CA 94105
(415) 555-0198
DATE (MM/DD/YYYY)
05/20/2024
CERTIFICATE NUMBER
24-5678-ABCD
THIS CERTIFIES THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED BELOW.
INSURED
Atlas Field Services, Inc.
500 Industrial Way
Austin, TX 78701
INSURERS AFFORDING COVERAGE
INSURER A: Everest National Insurance Co.
INSURER B: Travelers Property Casualty Co.
INSURER C: XL Specialty Insurance Company
INSURER D: Ironshore Indemnity, Inc.
Type of insurance
Policy number
Eff
Exp
Limits
Commercial General LiabilityClaims-made   Occur
GL123456789
05/01/24
05/01/25
Each occurrence$1,000,000General aggregate$2,000,000
Automobile LiabilityAny auto
BA987654321
05/01/24
05/01/25
Combined single limit$1,000,000Property damage$1,000,000
Umbrella LiabilityOccur
UL555666777
05/01/24
05/01/25
Each occurrence$5,000,000Aggregate$5,000,000
Workers Compensation& employers' liability
WC112233445
05/01/24
05/01/25
E.L. each accident$1,000,000E.L. policy limit$1,000,000
DESCRIPTION OF OPERATIONS - RE: Field service dispatch · Southwest territory. Certificate Holder is included as Additional Insured where required by written contract.
[IN-NAME COVERAGE VERIFIED]
[ LIVE_CALCULATION // CNTR_4A91 ]
Contractor Payments$128,400
-Verified Coverage$128,400
=Premium Exposure$0
$0 LIABILITY
[IN-NAME COVERAGE VERIFIED]
STATUS: CLEAR TO PAYCNTR_4A91:RESOLVED
Coverage in the contractor's name

So they're off your audit entirely.

A Fortune 500 carrier (A+ Superior, AM Best) issues statutory workers' compensation in the contractor's name and entity, scaled per engagement to the actual pay. The contractor stays an independent contractor — and the policy is what keeps their pay out of your premium base.

Because coverage is per engagement, premium follows the real work instead of an annual estimate, and there's no end-of-year reconciliation to dispute.

How per-engagement coverage works
Outside certificates

Validate the COIs you already collect.

Some contractors bring their own coverage. Drop their certificate into COI Review — it parses the ACORD 25, checks limits and dates against your requirements, and flags anything expired or missing. An outside policy counts toward a clean audit instead of becoming a surprise charge.

Explore COI Review
OCR Extraction Console
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
03/01/2025
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Producer
Rockford Insurance Agency
320 Park Ave, Suite 200
Rochester, NY 14601
(585) 555-0199
Contact
Jane Smith
(585) 555-0199
jane.smith@rockfordins.com
Insured
Northwind Electric LLC
742 Evergreen Terrace
Chicago, IL 60642
Insurer(s) Affording CoverageNAIC #
A:Acme Insurance Company12345
B:National Fire & Marine Ins.20079
C:Travelers Indemnity Co.25658
D:Everest Indemnity Ins. Co.10851
E:
F:
CoveragesCERTIFICATE NUMBER: 25-032025-001REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
INSR
Type of Insurance
Policy Number
Eff
Exp
Limits
A
Commercial General LiabilityClaims-made Occur
CGL1234567
03/01/2025
03/01/2026
Each occurrence$1,000,000Damage to rented prem.$300,000Med exp (any one)$10,000Personal & adv injury$1,000,000General aggregate$2,000,000Products-comp/op agg$2,000,000
B
Automobile LiabilityAny auto
BA9876543
03/01/2025
03/01/2026
Combined single limit$1,000,000Bodily injury (per person)$1,000,000Bodily injury (per acc.)$1,000,000Property damage$1,000,000
C
Umbrella LiabilityOccur
UMB7654321
03/01/2025
03/01/2026
Each occurrence$5,000,000Aggregate$5,000,000
D
Workers Comp & Employers' Liab.Y / N
WC24681357
03/01/2025
03/01/2026
E.L. each accident$1,000,000E.L. disease - EA emp.$1,000,000E.L. disease - policy$1,000,000
Certificate Holder
Atlas Field Services, Inc.
2500 Meridian Pkwy
Durham, NC 27713
Cancellation
Should any of the above described policies be cancelled before the expiration date thereof, notice will be delivered in accordance with the policy provisions.
Authorized Representative
Extraction Output200_OK ●
01{
02  "vendor": "Northwind Electric LLC",
03  "form_type": "ACORD 25",
04  "certificate_number": "25-032025-001",
05  "insured": {
06    "name": "Northwind Electric LLC",
07    "address": "742 Evergreen Terrace",
08    "city": "Chicago",
09    "state": "IL",
10    "zip": "60642"
11  },
12  "policies": [
13    {
14      "line": "A",
15      "coverage": "Commercial General Liability",
16      "policy_number": "CGL1234567",
17      "effective_date": "2025-03-01",
18      "exp_date": "2026-03-01",   → [ MATCH // 200_OK ]
19      "limits": {
20        "each_occurrence": 1000000,   → [ MATCH // 200_OK ]
21        "general_aggregate": 2000000,
22        "products_comp_op_agg": 2000000
23      }
24    }
25  ],
26  "validation": {
27    "status": "verified",
28    "confidence_score": 0.98,
29    "source": "ocr_v2.1"
30  }
31}
▧ Field Extraction: Complete
The audit file

One export, the whole audit.

When the auditor sends the request, you don't reconstruct anything from email. Export every contractor you paid during the term — the amount paid to each and the certificate proving their own coverage — in a single click, already reconciled against actual amounts paid.

What used to be a multi-week fire drill across accounting, ops, and the broker becomes a download.

Read the audit FAQ
DB // CONTRACTOR_REGISTRY
The full list of 1099 entities paid during the term.
Live
entity_idlegal_nameeintotal_paid
ENT-1001Northwind Electric LLC81-2456789$128,400.00
ENT-1002Summit Plumbing Inc47-1122335$64,230.00
ENT-1003Metro HVAC Services36-9988771$93,150.00
...
DB // DISPATCH_LEDGER
The precise payouts reconciled against actual amounts paid.
Live
dispatch_identity_iddateamountstatus
DSP-88901ENT-100102/14/2025$12,840.00reconciled
DSP-88902ENT-100102/28/2025$15,320.00reconciled
DSP-88903ENT-100203/01/2025$8,450.00reconciled
...
DB // COI_VAULT
The active certificates proving their own coverage.
Live
cert_identity_idform_typepolicy_expstatus
COI-55621ENT-1001ACORD 2503/01/2026active
COI-55622ENT-1002ACORD 2502/15/2026active
COI-55623ENT-1003ACORD 2503/20/2026active
...
COMPILING // RECONCILED_EXPORT
FY2025_AUDIT_PACKAGE.zip
Package StatusREADY
Generated05/20/2025 14:32:18 UTC
SourceRECONCILED_SYSTEM
Size24.7 MB
Checksum (SHA-256)a7f3b2e8c4d9...9f7e1a2b3c4d5e6f
Package Contents (3 items)
Item
Type
Status
Size
reconciled_contractors.csv
CSV
included
12.4 MB
attached_acord_forms/
DIR
included
8.7 MB
metadata_manifest.json
JSON
included
1.2 KB
Download Export
In practice

Audit prep for a 60-tech field-services company.

The challenge. A field-services company paid 60 subcontracted technicians over the policy year. At the workers' comp audit, the carrier asked for a certificate on every one. A dozen couldn't produce valid WC, and their pay was added to the company's audited payroll — a five-figure true-up at the governing class code.

The solution. The next year, techs without their own coverage carried per-engagement WC in their own name through 1099Policy, each certificate issued and archived automatically. Certificates from already-insured techs were validated through COI Review as they came in.

The result. When the audit landed, the company exported one reconciled file — every technician, what they were paid, and their certificate — with zero unverified contractors and no added premium.

Trusted by

The teams that staff, dispatch, and pay contractors.

Technet
Simon
Clipboard
INVNT
Jack Morton
FAQ

Workers' comp audit questions.

Nearly every workers' compensation policy is auditable. At the end of the term the carrier reviews your actual payroll and payments to subcontractors and 1099 contractors to true up premium. Payments to anyone who can't prove their own coverage are typically added to your audited exposure.

If a contractor can't produce a valid certificate showing their own workers' comp, the auditor generally treats their pay as your exposure and charges premium on it at your governing class code.

Certificates of insurance for every subcontractor and 1099 you paid during the term, plus the amounts paid and the work performed. 1099Policy keeps every policy and ACORD 25 certificate on file alongside what you paid each contractor.

We write statutory workers' comp in 46 states plus DC. North Dakota, Ohio, Washington, and Wyoming are monopolistic states where coverage is available only through the state fund.

Collect their certificate and run it through COI Review. It parses the ACORD 25, checks limits and dates against your requirements, and flags anything missing or expired.

Records are retained indefinitely. When an audit covers a prior period, export every contractor you paid, the amount paid, and their certificate for that window.