Kapasu Insurance Services Inc. Blog
When you begin insurance under a new small business insurance policy, you will often be asked to give estimates for your company's revenue, costs, and payroll. Your insurance provider uses these estimations to determine the amount of your premium for the upcoming policy period.
Nevertheless, it is possible for the size of your business and the conditions to quickly change from what you expected at the beginning of the time.
A premium audit allows you and your insurance provider to evaluate your total premium, given the actual costs of the policy, rather than the estimated costs.
Importance of Premium Audit
Analyzing the premium is an important step in the process. It figures out the absolute premium insurance policies. Also, it sends the data gathered at the audit to rating organizations to be used in making loss costs and experience modifiers.
It is done when the audit is finished. The most important thing is that the premium audit is authentic, confirmed, and in line with the laws and rules that have been made.
How to Prepare
Maintaining order in your business records and ensuring their accuracy throughout the year is the most effective approach to be ready for the audit of your coverage premium. Your auditor may want to view one or more of the following documents:
Insurance Policies that have Premium Audits
Workers' compensation premium audits are the most common, but you may also be liable for a general liability audit. As a result, most states require businesses with a particular number of employees to have workers' compensation insurance. This indicates low regulatory non-compliance if your company expands beyond your early estimates or your personnel is incorrectly categorized.
You may fully avoid this issue with a workers' compensation premium audit, which allows you to adjust your premium amount after the policy, depending on how much coverage you require.
Your company's sales and payroll records will verify your insurance coverage premiums throughout the policy term. The financial records of your business are examined as part of an insurance premium audit to determine your actual risk exposures.
At Kapasu Insurance Services Inc., we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We will go the extra mile to help you with your needs. To learn more about how we can help you, don't hesitate to contact our agency at (760) 995-3853 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!
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