FAQ’s

FAQ's

Who is Lowry?

Lowry and Associates, Inc., is an independent third-party firm that provides business insurance auditing services to many insurance companies (“carriers”) across the United States. If you have received a letter from us, we have been contracted by your insurance carrier to complete the audit for your business insurance policy. Lowry and Associates, Inc., is not an insurance carrier or underwriter. We collect relevant information about policyholder business operations and report this to the insurance carrier, who determines if and how this information will affect the policyholder’s policy, according to the provisions of the policy contract.

What is the audit for?

At the beginning of the policy year, you provided estimates of the premium basis (such as payroll, sales, or square footage) that would be used to calculate your insurance premiums. The audit determines if the actual payroll (or sales, or square footage, etc.) are in line with the estimates you provided previously.

Why do I need to complete the audit?

The provisions of your insurance policy constitute a contract between you and the insurance carrier. In agreeing to the terms of this contract, you also agreed to comply with any requests to complete an audit of your records for the time period during which you had insurance coverage. Failing to complete the audit violates the terms of your policy contract and is unfavorable to your business.

I no longer have insurance coverage with his carrier, I didn't renew my policy, or I canceled my policy. Do I still need to complete the audit?

Yes. The carrier still has the right to audit records covering the time period when the policy was open, even if there is no current insurance coverage. This allows the carrier to determine if the estimated payroll (or sales, or square footage, etc) calculated at the beginning of the policy period is in line with the actual operations of your business during that time.

I no longer have the business, do I still need to complete the audit?

Yes. The carrier still has the right to audit records covering the time period when the policy was open, even if the business no longer exists or if it is under new ownership. This allows the carrier to determine if the estimated risk exposure calculated at the beginning of the policy period is in line with the actual operations of business during that time.

We didn't do work on the project; do I still need to complete the audit?

Yes. The carrier still has the right to audit records covering the time period when the policy was open, even if the business didn’t have any operations during that time. The fastest way to complete such an audit is to provide your information over the phone by calling 435-245-9350.

What if I have no employees or payroll during the audit period?

If you have a payroll-based policy and no payroll, there is very little information needed for the audit. Our customer service representatives will be able to help you complete the audit quickly and easily over the phone. Call 435-245-9350 to speak with a representative who can take the information needed for the audit over the phone.

What information do you need?

It depends on the premium basis for your policy, but every audit requires contact information, a description of your business and a list of your principals, their duties, and W2 wages. Your specific audit may also require payroll information, gross sales, gross receipts, subcontractor information, copies of certain tax records, and other data that reflects the extent of your business operations. All of this information will be indicated in the forms you received in the mail. Please fill out the forms you received completely.

Where do I find my Audit ID/Control Number?

The audit ID can be found at the bottom of the letter, or at the top of the first page of the forms beneath a bar code. The control number can be found at the bottom of each page of the letter you received beneath a bar code.

How do I calculate the audit period?

Round your policy period to the nearest month. If possible, we recommend rounding to a date that begins a calendar year quarter (Jan 1, Apr 1, Jul 1, Oct 1). In most states, you can use any audit period that is within 15 days of your payroll. In California, you can use an audit period that is within 30 days of your payroll.

How do I do the adjustment section of the audit?

If your policy period start date is not within 15 days of the beginning of calendar year quarter (Jan 1, Apr 1, Jul 1, Oct 1), you will need to adjust the total from your four quarterly reports so that they match the payroll for the audit period. Click here for more detailed instructions.

Where do I send the audit forms to?

By Mail:  Lowry and Associates, P.O. Box 1139, Draper, UT 84020.
By Fax: 1-435-245-9352

By Email: Upload your forms here.

I have more employees than there is space for on the online forms. What do I do?

Either upload a list of the employee here, or attach it to the online forms.  If there is not an attachment area in the employee section, attach it anywhere and just make a note in the employee name field as to where it’s attached.

The owners are exempt. Do I need to list them?

Yes. List all principals (and their W2 wages, if requested). If your policy provides for exemption of officers or owners, we will take that into account as we process your audit report. Our report to the carrier needs show that these principals’ wages were excluded from the premium. Any attempt to calculate your own premium basis and report that on the audit may lead to inaccuracies on your audit report.

What should I report in the “Gross Payroll” column?

The total in the Gross payroll column should include everything, including taxes, overtime, tips, bonuses, severance pay, and so forth. Do not make any deductions for overtime, tips, or anything else in this column.

Nothing has changed since last year. If there has been no changes in the business since last year’s audit, does the audit still need to be completed?

The purpose of the audit is to determine just that: have their been any changes to your business operations in the past year? If there have, then:

The information we report back to the insurance carrier needs to have two sources. Your verbal or written confirmation that there were no changes provides one source. For a second source, you must complete the audit to back up your claim.

Are the online forms auto-populated if I have done an audit with you in the past?

No. Part of the purpose of the audit is to determine if there have been any changes since last year. In the interest of accuracy, we cannot return information to you that was previously provided.

Can I change my policy dates to correspond with the quarters?

The policy dates are determined by the day you opened your policy. You may be able to change your future policy dates, but past policy dates cannot be changed. Contact your professional insurance agent to find out. Lowry and Associates Inc. is not an insurance carrier or underwriter and cannot change any aspects of your policy. We simply collect information about business operations and report this to the insurance carrier.

Can I just provide you with copies of my 941 quarterly reports?

No. The 941 quarterly reports are form of verification we request; however, we need two forms of verification for every audit. The 941s constitute the second verification of payroll information you provide on the completed audit forms.

What happens if the subcontractors don't have insurance?

This depends on the policy type and the insurance carrier. Contact your insurance agent to find out what your policy contract says regarding uninsured subcontractors.

Who should be listed under the subcontractor section/non-employee labor section?

Subcontractors are people who did work for your business as part of their own, separate business. Non-employee laborers (a.k.a. “casual laborers”) are individuals who worked for you who did not have their own business and did not receive W2 wages. Their wages are usually reported on IRS form 1099, so they are often called “1099 employees.”