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Below are some common questions that may arise during the premium audit process.
Below are some common questions that may arise during the premium audit process.
General Audit Questions
General Audit Questions
What is a premium audit?
What is a premium audit?
A premium audit is a review of records and company operations to accurately adjust a premium, which is established at the start of each policy period. Premiums are usually based on payroll or sales.
A premium audit is a review of records and company operations to accurately adjust a premium, which is established at the start of each policy period. Premiums are usually based on payroll or sales.
Why am I being selected for an audit?
Why am I being selected for an audit?
No one business is singled out for an audit. State regulations and insurance policy contracts require an audit for all workers' compensation policies. An audit also is required for many other business policies, including general liability, liquor liability, and garage liability.
No one business is singled out for an audit. State regulations and insurance policy contracts require an audit for all workers' compensation policies. An audit also is required for many other business policies, including general liability, liquor liability, and garage liability.
Is the audit optional?
Is the audit optional?
No, it is not optional. Due to various insurance guidelines and state laws, an audit must be completed after the expiration of a policy period.
No, it is not optional. Due to various insurance guidelines and state laws, an audit must be completed after the expiration of a policy period.
What happens if I do not comply?
What happens if I do not comply?
Many states, as well insurance carriers, enforce a penalty for non-compliance. Therefore, not complying with the audit procedure, such as not providing requested information or documents, may result in penalty. Your cooperation is essential to completing the audit so that the auditor can calculate the correct premium.
Many states, as well insurance carriers, enforce a penalty for non-compliance. Therefore, not complying with the audit procedure, such as not providing requested information or documents, may result in penalty. Your cooperation is essential to completing the audit so that the auditor can calculate the correct premium.
Can I request a copy of the final report? What if I don't agree with the results?
Can I request a copy of the final report? What if I don't agree with the results?
Your insurance broker often will provide a summarized report that outlines the audit results. If you'd like further detail, your broker can request that a detailed copy of the audit be sent to you. Should you disagree with the audit results, you can ask your broker to have the audit reviewed, or you can directly contact your auditor, who will be happy to review the results.
Your insurance broker often will provide a summarized report that outlines the audit results. If you'd like further detail, your broker can request that a detailed copy of the audit be sent to you. Should you disagree with the audit results, you can ask your broker to have the audit reviewed, or you can directly contact your auditor, who will be happy to review the results.
Physical Audit Questions
Physical Audit Questions
How long does a physical audit usually take?
How long does a physical audit usually take?
The entire audit process ranges from two to four hours. Timing is dependent on the complexity of company operations, record-keeping, and other factors.
The entire audit process ranges from two to four hours. Timing is dependent on the complexity of company operations, record-keeping, and other factors.
What if I don't have time for the full audit?
What if I don't have time for the full audit?
In most cases, the auditor can accommodate time restraints while still conducting a physical visit. Your auditor will review additional information or requirements, which can be provided via email and telephone after a physical visit is completed.
In most cases, the auditor can accommodate time restraints while still conducting a physical visit. Your auditor will review additional information or requirements, which can be provided via email and telephone after a physical visit is completed.
What can I do before the audit appointment?
What can I do before the audit appointment?
Your appointment request will come with a detailed list of records to help you prepare (that list also can be found here). If you wish to provide information prior to the visit or if you have questions, contact your auditor directly.
Your appointment request will come with a detailed list of records to help you prepare (that list also can be found here). If you wish to provide information prior to the visit or if you have questions, contact your auditor directly.
Remote Audit Questions
Remote Audit Questions
I have filled out forms for past audits; why do I need a specific auditor assigned this year?
I have filled out forms for past audits; why do I need a specific auditor assigned this year?
Prior years' audit procedures may vary. The remote audit procedure aims to mirror the physical audit process without a site visit, in order to calculate accurate results while saving you time.
Prior years' audit procedures may vary. The remote audit procedure aims to mirror the physical audit process without a site visit, in order to calculate accurate results while saving you time.
Where do I send my documents, and how do I know they were received?
Where do I send my documents, and how do I know they were received?
During the initial communication period, your auditor will provide a secure link to upload the required materials. Upon receipt of those materials, your auditor will provide email confirmation that the documents were received.
During the initial communication period, your auditor will provide a secure link to upload the required materials. Upon receipt of those materials, your auditor will provide email confirmation that the documents were received.
Once I upload the documents, are there any further requirements?
Once I upload the documents, are there any further requirements?
Upon review of audit materials, your auditor may request additional documents or conduct a brief phone interview to confirm company operations, employee duties, etc.
Upon review of audit materials, your auditor may request additional documents or conduct a brief phone interview to confirm company operations, employee duties, etc.
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