Has your business received an insurance audit?
Know you’re not alone!
What is an insurance audit?
Let’s start by breaking down the basic types of audits.
*An insurance audit is a review of payroll records and income statements of a policyholder to determine if the policy represents an accurate rating of the company’s exposure to liability or workers compensation.
*A general liability audit determines if the company has the proper rating exposure for the amount of risk the insurance company is providing insurance coverage for, if the policy requires an adjustment in sales or payroll the premium will change in accordance with the rate either up or down.
*A workers compensation insurance audit is conducted to verify payroll, class codes, and sub-contractor exposures. Once again the premium will either increase or decrease based on the payroll difference from policy inception.
Audits are generally conducted at the end of a policy term. The Insurance Company will contact you by phone or mail to schedule the audit. Believe it or not, an insurance audit can save your company time and money in the long run.
What should you do if you are notified of an audit?
Once you have been notified by your Insurance Company that an audit will be conducted, we suggest that you contact your insurance agent and your accountant. Let them know about the correspondence you received so they can review it and guide you the best way possible. Our staff is trained to handle these reviews and has the experience needed in working with the auditors.
Example of a business that you have assisted with an audit that would give a testimonial?
Your best defense is a good offense. We can’t stress enough the importance of keeping good records and working, current relationship with your insurance agent. When your paperwork matches up with the work you do, everything falls into place.
Let us help you! Received a call already? No problem, give us a call. Want to prepare in advance for your review? We can help. In the middle of an audit and find yourself lost? Don’t worry, we are here for you. Give us a call today to help you have a smooth and worry-free audit.