What Is An Insurance Audit?
Insurance audits are typically performed on commercial insurance policies providing auto, general liability, garage liability, umbrella, and workers compensation coverages. When these policies are issued, you are asked to pay an estimated premium. Estimated premiums are based on the nature of your business and your estimate of exposures (i.e. payroll, sales, etc.) for the policy period.
Once your policy expires, an audit is conducted by the insuring company to collect information on actual exposures and operations and then a final premium is determined. The difference in the estimate and the final premium will be either refunded or billed to you. This allows your insurance to accurately reflect your business’s fluctuations in payroll and business growth or downsizing.
When And How Will The Audit Be Done?
An audit will be performed shortly after your policy expires, usually within 30 days of the expiration date. Smaller, less complex businesses may only require that you assemble and send the necessary information to the insurer or have the information available when a telephone auditor calls. Larger and more complicated policies are handled by a field auditor, who will schedule an appointment and visit your business. If you must change or cancel a scheduled appointment, please advise the auditor as far in advance as possible.