General Liability Audits for Florida Contractors: What to Expect

Most Florida contractors know about workers\u2019 compensation audits. Fewer realize that their general liability (GL) policy is also subject to an annual audit \u2014 and that the same subcontractor COI issues that inflate workers\u2019 comp bills can do the same to your GL premium.

How GL Audits Work in Florida

Your general liability premium is calculated based on estimated gross receipts, payroll, or square footage \u2014 depending on your policy structure. At the end of the policy year, your carrier audits your actual figures. If your revenue or payroll was higher than estimated, you owe additional premium. The audit also reviews your subcontractor documentation, because work performed by uninsured subs is typically included in your GL exposure.

What GL Auditors Look For

A Florida GL auditor will request your general ledger or income statement showing gross receipts for the policy period, payroll records by employee classification, certificates of insurance for all subcontractors, contracts with subcontractors showing the scope of work, and any certificates you issued to clients or project owners. The auditor is specifically looking for revenue that was not included in your original premium estimate and for subcontractor work that should be included in your exposure.

The Subcontractor COI Problem in GL Audits

Just as with workers\u2019 comp, your GL carrier will add uninsured subcontractor payroll or revenue to your audit exposure if you cannot produce valid COIs. For a Florida GC doing $2M in subcontracted work annually, having incomplete COI documentation can add $5,000\u2013$20,000 to your GL audit bill. The fix is the same: collect COIs before work begins, track expirations, and keep everything organized by policy period.

Common GL Audit Disputes

The most common grounds for disputing a Florida GL audit bill are incorrect revenue classification (some revenue categories carry lower rates), failure to credit valid subcontractor COIs, inclusion of revenue from excluded operations, and mathematical errors in the audit calculation. Audit Monkey reviews GL audit worksheets for Florida contractors and has successfully disputed millions in overcharges.