For business owners, a premium audit will ensure that coverage is accurate and that you are not paying more than needed in insurance premiums. At times, our auditors may find areas of your business that are not appropriately covered, which may mean an increase in premiums. However, keep in mind that the goal of these audits is to ensure that your business is appropriately covered – no more, no less – and that you are protected from any and all risks.
Many insurance premiums are based on payroll, or total compensation for services performed by employees. This includes money and money substitutes such as bonuses, vacation pay, wages, commissions, payment for piece work, profit sharing plans, value of board and lodging, sick pay, holiday pay, overtime and other money substitutes.
A premium audit may reduce your insurance premiums if your payroll records reflect: