A premium audit is our means of obtaining information to determine the actual payrolls, sales, or other variable information used to calculate your insurance premium.
When your policy was issued, your premium was based on your estimate of variable rating information, such as payroll or sales. An insurance audit is performed to determine what the actual premium should be based on your company’s actual results.
Yes, it’s one of the terms of your insurance contract and is a standard insurance industry practice. Rest assured we observe the highest level of confidentiality in this process.
Audits should be completed no later than 60 days after policy expiration. 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 may be estimated and your policy could be cancelled.
If you maintain detailed records, the audit process will be much smoother and work to your advantage. Credits are available on the audit for pay types such as premium overtime, tips, severance pay, and third-party sick pay; however, your records must provide a summary of these wage types by employee, department, and class code to allow the credit. If you’re a contractor, your policy will allow a split of an employee’s wages between different construction codes. Your records should indicate what type of jobs each employee completed during your policy term. With this breakdown, we can allow the use of more than one construction code. Without this breakdown, manual rules state we must include all wages in the highest-rated class that applies to any portion of your work.
To perform a comprehensive and quality audit, these records should be made available:
If you have any questions about a premium audit, please be sure to contact your West Bend independent insurance agent.