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A General Liability Audit should not be stressful.

Anchorpoint Insurance Services

Business Insurance Solutions ___________________________________________________


Receiving a notice of a “General Liability Audit” can sometimes cause a business owner stress; although, that’s not the intention. An audit is performed to ensure you have paid no more than the appropriate premium for your exposure, or the thing for which you have insurance. Your initial deposit premium was based on your best estimate of the auditable exposure (payroll, sales, etc.). Insurance companies use a Premium Auditor at the end of the policy period to compare the “actual” auditable exposure against your “estimated” amount.


What Is a General Liability Insurance Audit?

A general liability insurance audit examines your business’ payroll and risk exposure. An audit makes sure you’re paying the correct amount for general liability insurance, and that you’re getting the right amount of coverage for your business.


What Is the Purpose of a General Liability Insurance Audit?

An audit ensures your business has the right amount of general liability insurance coverage. Your business can change a lot from year to year. For example, if your sales increase, you may have to hire new employees to help with increased demand. Or, you may have downsized around the holiday season, so you had fewer employees at the end of the year. In either case, you may need to adjust your coverage amount based on the changes to your business.

What Happens in a General Liability Insurance Audit?

The word “audit” may sound stressful, but don’t panic. At the beginning of the year, you pay a certain amount for general liability coverage. If you’re asked to go through an audit at the end of the year, an auditor from The Hartford reviews your business’ payroll and other documents to determine if the premium you paid was accurate.

A general liability audit looks at:

· Your business’ gross sales

· Job duties of employees and independent contractors

· Changes from the prior year


Depending on the audit results, you could:

· Get a refund if the premium you paid at the start of the year was higher than what you need now.

· Have additional premium because you needed more coverage, so you’ll have to pay the difference.


Preparing for a General Liability Premium Audit

Having the necessary documents and information can make for a smooth audit. Some documents you may need include:

· Payroll or sales reports

· Certificates of insurance

· Tax documents

· Subcontractor or independent contractor documents


Do I Have To Do an Insurance Audit?

Insurance companies may perform an insurance audit at the end of the year for:

· General liability insurance

· Workers’ compensation insurance

· Commercial property insurance


If you’re notified of an insurance audit it’s important to send your insurance company any documents or information they ask for. Completing a general liability insurance audit, or any type of insurance audit, ensures you’re paying for and getting the right amount for coverage.

Be aware that if you don’t complete an insurance audit, your insurer can:

· Charge a premium increase. In some cases, this can be a significant amount.

· Cancel your policy, leaving you without coverage.

· Report you to a collection agency if there’s a balance due on your premium and you don’t pay it.


Learn More About General Liability Audits & Coverage

Choosing the right policy and coverages is important and can help you run a successful business. Anchorpoint Insurance is backed by more than 14 years of experience and know every business owner has unique needs. Our specialists are here to help you every step of the way. So, if you need help completing a general liability insurance audit or have any other questions, we’ve got your back.




Anchorpoint Insurance Services

920 East Blanco Rd, Boerne, TX 78006

210-640-7050 Office

830-796-5773 Direct

210-800-9754 Fax

www.aptruckinsurance.com

www.anchorpointinsurance.com


Providing Business Insurance Solutions



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