What Is A Premium Audit?
A premium audit is a review of your payroll records and documentation at the end of your policy term. It’s done to verify whether the estimates provided at the beginning of the term were accurate and to ensure that the premium paid throughout your term was the correct amount.
Why do I need a premium audit?
Many states legally require premium audits to be conducted at the end of every policy period or if a policy is canceled.
What to Expect During the Premium Audit Process
- You’ll receive an email notification when it’s time for your premium audit.
- We use a third party to conduct most of our audits. One of our audit partners will reach out after your policy expires to get started.
- The audit should be completed and submitted within 30 days.
- Failure to comply can have significant consequences such as cancellation of an active policy term, being reported as non-compliant to the workers compensation bureau in your state or referral to a collections vendor.
How to Prepare
When it comes time for your audit, you may be asked to provide the following records. It’s a good idea to keep these up to date throughout the policy term and to let your agent know about any changes to your business while your policy is active.
- Payroll and overtime records
- Job descriptions
- Expenses
- W-2 and 1099 forms
- Certificates of insurance for all subcontractors
How Does a Premium Audit Affect My Insurance Costs?
After complying with your audit, you’ll receive a final audit statement. This outlines the results and any changes to the overall premium for your term. If the final amount is different from your original annual premium estimate, you’ll receive a credit or an invoice.
Who Will Conduct My Audit?
BerkleyNet works with a number of third-party partners to conduct your audit effectively. The assigned team will reach out after your policy term expires. They’ll explain any requirements, who to communicate with and more.
What if I Have an Issue with My Auditor or Questions They Can’t Answer?
For questions about your audit that the auditor cannot answer or concerns about your audit experience, please contact us at [email protected].
