The premium audit process is designed as a service that guarantees you only pay the premium that you owe. Premium audits help to calculate the premium that a business owner truly owes rather than a premium based on the estimated figures provided when the insurance policy was issued.
While this could mean that your premium will increase if information was missing or your actual payroll or sales figures were more than the estimated figures, it could also mean more money in your pocket if those figures were less than the estimated amounts.
Premium audits are typically conducted after the policy expires or is canceled. In addition, the premium audit can provide valuable information about your business operations.
Here are answers to the five most common questions concerning premium audits. (more…)
Business owners are commonly contacted about completing a remium audit after an insurance policy expires or is canceled. The audit process is designed as a service to you that guarantees you only pay the premium that you owe.
What is a Premium Audit?
The primary purpose of a premium audit is to calculate your final insurance premium. When your policy was issued, the premium was an estimate of an exposure basis (usually payroll or sales) multiplied by a rate. The rate used is determined by how the exposure base is classified. The audit will examine your records to establish the actual exposure basis and make sure that the correct classification codes and rates are used in determining your final premium. Because the original premium was an estimate, the audit will mostly likely result in a change of premium and/or classifications for your business. (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…)