The initial premium for some business policies is estimated based on past records of your operations. Businesses with variable or fluctuating exposures, such as payroll, total cost, sales/receipts and admissions will have estimated premiums on some policies. Typically, policies such as Workers’ Compensation, General Liability, Garage Liability and Inland Marine Installation Floater policies are audited. After the policy period ends, a premium auditor conducts a premium audit to determine what your exact insurance exposures were during the policy period. If necessary, your insurance premium is then adjusted to reflect your actual exposures.

An accurate premium audit is a benefit to you and your business. Having the proper records saves you time and can save you money by ensuring that you receive an accurate audit. Learn more about what documentation is needed and how to better prepare for your premium audit. 

Premium audits still apply to Workers' Compensation policies enrolled in the PayGo payment plan. With accurate and timely reporting of payroll during the policy term for those on the PayGo plan, there will likely be very little to no premium adjustments, and the audit process will be much more efficient. 


The Premium Audit Process

Determining an Employee or Subcontractor

Multiple State Operations

Adequately Insured Contractors

The Importance of Certificates of Insurance