How to Prepare for an Insurance Audit
An insurance audit may sound stressful, but it is usually a routine part of certain business insurance policies. Insurance companies use audits to make sure your policy accurately reflects your business operations, payroll, sales, or other information used to calculate your premium. Being prepared ahead of time can make the process more simple.
Gather Your Records
Before the audit, collect important documents such as payroll records, sales reports, tax forms, and information about employees or subcontractors. Having everything organized can help prevent delays. This will make the process easier for the client and the agent.
Review Your Business Information
Check that your business information is accurate. This can include the number of employees you have, the type of work they perform, your annual sales, and any changes that happened during the policy period.
Keep Track of Subcontractors
If your business uses subcontractors, keep copies of their certificates of insurance. Without proper documentation, their payroll or payments could sometimes be included when calculating your premium.
Prepare to Explain Changes
Your business may have changed during the year. You may have hired employees, added services, or experienced changes in payroll or sales. Be prepared to explain these changes during the audit.
Ask Questions
If something on the audit does not make sense, ask your insurance agent or auditor for clarification. Understanding how your premium is calculated can help you catch mistakes and better prepare for future audits.
Preparing for an insurance audit does not have to be complicated. Keeping accurate records, reviewing your business information, and staying organized can make the process smoother. If you have questions about an upcoming audit, your insurance agent can help you understand what documents you may need and what to expect.
You can experience the benefits of being a part of a full-service Independent Insurance Agency today! Simply contact Briggs Agency, Inc. if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!
Blog written by: Sara Trajanoska
