Nov
How Contractors Avoid Overpaying for Insurance at Premium Audits
HAVE YOU RECEIVED NOTICE OF A PREMIUM AUDIT?
Contractors find they must endure audits from insurance companies every year. The more prepared you are, the less likely you will be overcharged.
A premium audit is a review of your business operations, financial reports, and records to determine what to charge you for your contractor liability insurance, workers compensation, or other coverage provided. The objective is to determine the final earned premium for a given policy that was issued on the basis of payroll, sales, subcontracting costs, or other variables.
When policies are issued, the premium is often based on projections you provide for sales or payroll. Your insurance rates can vary based on this information, the audit determines what the correct premium should be based on your actual experience.