Premium Audit

Guidance for audit preparation

A successful and accurate audit depends on a number of factors:

• Having the right information ready and available for the final audit process.
• Understand the premium basis for your policy. Regardless of coverage type, the premium may be based on variable amounts such as but not limited to payroll, gross sales, units, subcontractor costs or a combination of premium basis measurements.
• Keeping proper records and documentation throughout the policy term. This will save time and frustration at audit time.
• It is highly recommended that a person with knowledge of the following be available during the audit process:
  • Ownership
  • Business operations
  • Employee duties
  • Where duties are performed
  • Payroll
  • Sales