Got a Surprise
GL Audit Bill?
General liability audits catch Florida contractors off guard every year — especially roofers. Overcharges are common. You have the right to dispute. Our agents help you do it correctly.
How It Works
Why GL Audits Generate Unexpected Bills
Every general liability policy for Florida contractors is issued based on an estimated exposure — usually estimated annual gross receipts or payroll. At policy expiration, the insurer audits your actual numbers. If your real revenues exceeded the estimate, you owe additional premium.
The problem is that auditors frequently make errors that inflate the final bill. The most common: including subcontractor receipts when the sub had their own GL coverage (and a COI to prove it), applying the wrong class code to your work, or failing to separate lower-rated operations from higher-rated ones.
For roofers specifically, the difference between class codes 91340 (new roofing) and 91342 (repair only) can mean a rate difference of 30–50%. A single misclassification on a $2M receipts policy can generate a five-figure audit bill.
Common GL Audit Overcharge Scenarios
Estimates based on typical Florida contractor GL policies. Actual amounts vary by carrier and policy size.
Root Causes
6 Reasons Your GL Audit Bill Is Higher Than Expected
Gross Receipts Underestimation
Your actual annual revenues exceeded the estimate used to calculate your deposit premium at binding.
Subcontractor Receipts Added
Subs without COIs — their labor or receipts are folded into your exposure base at your higher rate.
Class Code Misassignment
Work reclassified to a higher-rated code (e.g., new roofing vs. repair) during the audit review.
Mixed Operations Bundled
Residential and commercial work rated separately at binding but combined during audit.
Policy Expiration Audit
Standard annual audit triggered automatically at policy expiration for all GL policies.
Claims History Trigger
Multiple claims or large losses may prompt a mid-term or more thorough expiration audit.
Roofers: High-Risk for GL Audits
Why Roofing Contractors Get Hit Hardest
Roofing is one of the highest-rated GL classes in Florida. Insurers scrutinize roofing audits more aggressively than almost any other trade because the exposure — storm damage claims, third-party property damage, falling debris — is significant.
The two biggest GL audit traps for roofers: (1) using subcontractors without collecting COIs showing their own GL coverage, and (2) having repair work reclassified as new construction during the audit. Both are disputable with the right documentation.
Also see: Ghost Policies for Roofing ContractorsRoofer GL Class Codes
New roofing & re-roofing
Highest rate
Repair only
Lower rate
Metal roofing
Mid rate
Correct classification can reduce your audit bill by 30–50%.
Recommended Resource
Complex Audit? Consider The Audit Monkey
The Audit Monkey specializes in workers' comp and GL audit disputes for Florida contractors. For audit bills over $5,000 or audits with multiple disputed line items, a specialist pays for itself many times over.
They also offer a $99/month subcontractor COI management service — verifying that all your subs carry active insurance before they start work and monitoring certificates monthly. For roofers who rely heavily on subcontractors, this service eliminates the single biggest source of GL audit overcharges.
Visit The Audit Monkey$99
per month
Sub COI management — monthly verification of all subcontractor certificates
Frequently Asked Questions
How is a general liability audit different from a workers' comp audit?
Both audits verify that your actual exposure matches what was estimated when your policy was issued. Workers' comp audits focus on payroll and employee classification. GL audits focus on gross sales, payroll, or square footage depending on your trade. For contractors, GL audits often use gross receipts as the exposure base, which means any revenue you earned during the policy period — including subcontracted work — can affect your final premium.
What triggers a general liability audit for Florida contractors?
GL audits are triggered at policy expiration (standard annual audit), when your actual revenues significantly exceed the estimate used at binding, when you add new operations or trades, or when the insurer suspects misclassification. High-risk trades like roofing, structural work, and demolition are audited more frequently and more thoroughly than lower-risk trades.
Can subcontractors cause my GL audit bill to increase?
Yes — this is one of the most common and costly GL audit surprises. If you hired subcontractors who cannot provide certificates of insurance showing their own GL coverage, the insurer may include their labor costs or receipts in your exposure base and charge you for covering their work. Always collect COIs before subcontractors start work.
What is the difference between GL class codes 91340 and 91342 for roofers?
Class code 91340 covers roofing contractors performing new construction and re-roofing, which carries the highest GL rates. Code 91342 covers roofing repair only, which is rated lower. If your work is primarily repair rather than full replacement, you may qualify for the lower code — but you must be able to document the breakdown of your receipts by work type. Misclassification in either direction is a common audit dispute point.
How long do I have to dispute a GL audit in Florida?
Most GL policies allow 30 to 60 days to dispute an audit finding, depending on the carrier. The dispute window is specified in your policy documents. Missing this deadline typically makes the audit result final. Contact your agent immediately upon receiving an audit bill you believe is incorrect.
What records do I need for a GL audit?
For a GL audit you will need: annual gross receipts or sales records broken down by type of work, certificates of insurance from all subcontractors, payroll records (if your policy uses payroll as the exposure base), contracts or invoices showing the nature of work performed, and any documentation separating residential from commercial work if your policy rates them differently.
Received a GL Audit Bill?
Our agents will review your audit worksheet at no cost and tell you whether there are errors worth disputing.