The word “audit” can increase a person’s heart rate and send butterflies racing to their stomach, but a commercial insurance premium audit should not be an occasion for worry.
The annual audit process ensures that you pay only for the exposure presented by your business operation. Informing our agency of changes to your business operation throughout the year can eliminate audit surprises.
When you receive a mail or phone audit request, or a physical audit scheduling letter, it confirms:
- The date the information is needed by or the date of your appointment with the auditor
- The policies being audited
- The records you need to provide
- The audit period
Be sure to let the auditor know if the date and time are inconvenient, so a mutually agreeable date and time may be arranged.
Good record-keeping practices and compiling the information prior to the audit has a large effect on the time required. A phone audit usually takes less than 15 minutes, and the typical physical audit less than one hour to complete. As the audit contact, you are not usually required to be present for the entire audit process.
Once an auditor has verified that the records are adequate to proceed, and has an understanding of your business operation, they will enter the required information into an audit worksheet. The auditor will need to discuss the job duties for each employee, laborer and uninsured subcontractor.
For a physical audit, it is normal for the auditor to discuss the results of the audit with you and to provide a copy of the audit worksheet for your records. The auditor may provide a copy to our agency as well.
Hopefully this information makes the word “audit” less intimidating and provides some understanding of the process.
Contact Curtis Insurance Agency for any additional questions. We thank you for your business!