Premium Audit: Audit Guidelines
A premium audit will be conducted on your Workers' Compensation or
other commercial insurance policy. The primary function of the audit process is
to determine the actual payroll, sales, subcontract cost, or other exposure used
in calculating the final premium on your policy. Your premium will be
adjusted as a result of the audit. If exposures have been underestimated, an additional
billing will result. If exposures have been overestimated, a billing credit will
result.
Types of Audits
Preliminary Audit:
At the beginning of your policy year, an on-site audit may be performed to review
operations, classifications, and exposures. The auditor will review a representative
base period in order to project exposures for the full policy term.
Final Audit:
This audit is made at the end of your policy term to compare your policy premium
to actual exposures. Since your policy was written with estimated exposures, this
audit will determine actual exposures, and therefore, an actual, rather than estimated
premium.
Audit Methods
Physical Audit:
After your policy expires, you'll be contacted by phone or mail to make an appointment
for the final on-site audit. If your records are located at an address other than
your policy address, such as an outside accountant, please notify the auditor.
Telephone Audit:
You may be asked to provide audit information by telephone if a physical audit isn't
performed. An auditor will contact you to ask for the same types of information
you would provide for an on-site audit. Exposures may be verified to tax reports
such as 940, 941's or their equivalent.
Mail Audit:
If a physical or telephone audit isn't performed, you'll be asked to complete a
voluntary (mail) audit. To assess the reasonableness of reported payroll, you'll
be asked to submit copies of tax reports such as 940 forms.
Requested Information:
Please cooperate with our auditors, including responding quickly to phone and mail
inquiries. If you don't provide us with the requested information in a timely manner,
your audit will be estimated and your policy may be cancelled.
Contact Us
|
Mail:
|
|
West Bend Mutual Ins Co
Premium Audit Department
1900 S 18th Avenue
West Bend, WI 53095
|
|
Phone:
|
|
1 (262) 334-5571
1 (800) 236-5010 ext. 6006
|
|
Fax:
|
|
1 (262) 335-7085
|
|
Email:
|
|
Audit@WBMI.com
|
If you have any additional questions about the audit process, please contact your
independent insurance agent.