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…)
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…)
Handling workers compensation claims is no easy task. Some cases are very complicated, as well as very expensive. And every state’s laws regarding the payment of workers compensation claims is different. To add to that challenge, each state’s laws also differ somewhat as to how an insurance company may recoup some or all of the benefits paid. It is sometimes possible to recover money through the process of subrogation when the work-related injury was the fault of an independent responsible third party. (more…)
A high level of knowledge and understanding regarding industry-specific safety issues and loss trends makes a big difference in reducing workers compensation losses.
In this video, Rhonda McCreedy of DeRosa Corporation, Wauwatosa, Wis., and Chris Halverson of M3 Insurance Solutions, Waukesha, Wis., discuss Society Insurance’s proactive approach to risk control and loss prevention in the restaurant and bar business. (more…)
The insurance tips and trends to help you make smart safety decisions for your business, plus an inside look at Society.