Скачать или смотреть Local Yuba City Insurance Agent, pro-tips: What is an Insurance Premium Audit? What you need to know

Local Yuba City Insurance Agent Mariah Davis, the President of Oakview Insurance Services, Inc. in discusses insurance premium audits, and why they are important.

Hi I'm Mariah Davis founder of Oakview Insurance Services, let's discuss what an insurance premium audit is and why you need to do it. An insurance premium audit is when an insurance company does a review of your payroll or gross receipts to make sure the premium for your policy accurately reflects your business operations during the policy term. This occurs on some commercial general liability policies and all workers compensation policies. When you started your policy, you had to give an estimate of what you thought your payroll would be, or how much your gross receipts would be, the company calculated the premium based on those numbers. At the end of the policy term the insurance company audits those numbers to find out if they charge the correct premium, if they overcharge you may be eligible for a refund. But if you had a great year, made more money, or had higher payroll, you'll owe additional premium. Essentially your company earned more, or had more employees, so there was additional risk that wasn't accounted for at the start of the policy. So what do you need to provide? For gross receipts you'll need to provide a report from your accounting software showing how much your company was paid, before taxes and expenses. For payroll, a report from your payroll company, along with your 941 quarterly tax filings. For contractors be sure to keep your subcontractor costs separate and have proof of their insurance on file so you aren't charged additional premium to cover them. If you have the documentation available and it's correct, it's fairly painless to upload this to the insurance company or send it to the auditor. What happens if i don't do the audit? Well, the insurance company has the right to charge a non-compliant audit fee. They will then bill you for this amount. If you have two non-compliant audits, you're most likely going to be canceled from your current company and then you're going to need to disclose why you are canceled to the next insurance company. Have questions about business insurance or like our team to review your current insurance program? Give us a call or text us at 530-674-5054, or visit us at oakviewins.com