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?
Audits help ensure premium accurately reflects the exposure (payroll and operations) during the policy period and in most states are required at the end of every policy period or if a policy is cancelled. Failure to comply may result in policy cancellation, noncompliance reporting, negative experience modification rating (EMR) impact, or collection activity.
What to Expect During the Premium Audit Process
- You’ll receive an email notification when it’s time to complete your premium audit.
- BerkleyNet works with Berkley Premium Audit Services (BPAS), a dedicated Berkley business specializing in insurance premium audits.
- BPAS will get in touch with you to begin the audit process.
- You may be asked to provide payroll records, tax forms, and details about your business operations.
- 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.
- Description of operations & employee duties
- Quarterly 941 forms
- Payroll records by employee, including overtime records
- Expense records including a Profit & Loss for verification and transaction details for labor expenses (i.e. Vendor Summary)
- Subcontractor certificates of insurance
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?
Berkley Premium Audit Services (BPAS) works with a number of third-party companies 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.
Who to Contact for Your Audit
For audit-specific questions, contact BPAS:
- Audit worksheet requests
- Disputes or reopening an audit
- Audit status (can also be found in portal)
- General audit questions
For policy and billing support, contact BerkleyNet:
- Billing questions
- Reinstatement requests
- Audit Installment Plans (AIP)
877-497-2637