There is a process involved in determining insurance cost. There is also a process after a policy period expires to ensure that the policy premium was accurate – this is a premium audit, which is designed to guarantee that business owners only pay the premium they truly owe rather than a premium based on the estimated figures provided when their insurance policy was issued. The following information will help to explain the importance of the premium audit process. (more…)
Remember when you couldn’t wait to turn 16 and obtain the freedom that comes with a driver’s license? Then the anticipation of turning 18, becoming an adult and being able to vote. And having your first cocktail at 21. For me, the next hugely anticipated milestone was 25 – the age when my car insurance premiums would go down!
Okay, maybe that was just me.
So, why am I talking about car insurance? Well, it’s because most people understand car insurance. We know, for example, that a 16‐year‐old boy driving a sports car typically pays higher premiums than a middle‐aged married woman in a minivan, right? Statistically, teenage boys are more likely to cause accidents, report claims, and cost insurers more money than middle‐aged women. As a result, their premiums are higher. This is how insurance works: the greater the loss potential, the higher the premium. (more…)
The idea of an audit doesn’t appeal to most people.
Even the simple word “audit” has a negative connotation. After all, what good could possibly come out of an audit? Does the IRS ever give money back on an audit?
Fortunately, an insurance premium audit might be the one type of audit in this world that doesn’t necessarily mean doom and gloom. Instead, premium audits are designed to guarantee that business owners only pay the premium they truly owe rather than (more…)
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. (more…)