- April 21, 2021
- Posted by: Liam Dai
- Category: Uncategorized
What is a Premium Audit and Why do I have to complete it?
Premium audits are our way of making sure that your premiums are fair and accurate.
Premiums are billed at the beginning of the policy period, based on an estimates that was provided for the quote and the insurance companies knows this will go up and down depending on the business’s success. So at the end of the year, they may require you to submit your payroll or sales number so they can get the true picture of your operation and charge you the correct amount of insurance premium.
You are required to complete the audit, this is part of your contract/agreement with the insurance company, if you do not complete the audit, the insurance company can use a larger payroll/sales number as an estimate and send you a bill and/or cancel your policy for non-compliance. It is important for you to do complete the audit to avoid any issues.