One of the things that a Staples and Associates agent may suggest as part of the annual policy review for your business insurance is a premium audit. A premium audit is a review conducted by Staples and Associates to determine the actual cost of your coverage based on your real, not estimated, exposure during the policy period. A deep dive like this can help us make sure you have enough coverage and that you don’t overpay for your policy.

Why Your Business Should Get a Premium Audit 

When you first purchase policies for workers’ compensation or general liability, your premium is based on estimates like your projected payroll or sales. A premium audit allows the insurer to compare your actual figures to the estimated ones at the end of the policy period. 

If your actual numbers were higher, you might owe more. If they were lower, you may receive a refund or credit.

Records You Might Need for a Premium Audit

When preparing for a premium audit, you and your team should be ready to provide documentation on payroll, gross or overall sales, and number of employees and subcontractors. You’ll likely also need tax documents, your profit and loss statements, and any additional insurance policies you have. 

Contact a Staples and Associates team member today for questions and to see if a premium audit may be right for your business.