Premium audits are key to making sure you’re paying the right amount for protecting your business—and the process can sometimes result in a refund!
Approximately a month after your policy has expired, an auditor will contact you to set up a time to stop by. The auditor will let you know what records and documents you’ll need to present during the inspection so you can prepare.
For many business owners, this can be a stressful and scary process. With these 10 tips, however, you’ll be set for a worry-free audit.
- Have the necessary financial records ready to help the auditor conduct her or his inspection
- Have a knowledgeable employee who is familiar with operations procedures available and able to provide records, answer questions and escort the auditor around the premises
- Properly summarize overtime paid to individual employees and organize it by type of job
- Break down payroll records by job classification, overtime, severance pay, executive officers and multi-state exposures
- For contractors, keep track of the time and payroll for different types of work
- Use subcontractors or independent contractors that can provide workers compensation and general liability certificates of insurance
- Track gross sales by the various products, services or type of job
- If you own a restaurant, keep a record of employee tips, free meals and live entertainment costs
- Report large payroll changes to your agent. Payroll can be changed on your policy during the policy period, and any additional premium may be spread over several installments. Reporting changes will keep the policy more in line with the actual payroll figures, therefore avoiding large differences at the time of audit
- Cooperating with your auditor will work to your benefit and accelerate the process
Get in touch with your local independent agent for answers to all your Society audit questions.