An audit is the carrier’s way of confirming with you the actual exposure that they insured during your policy term. This is in comparison to the estimations that your premium was calculated with at the beginning of the term. This allows them to take into account any unforeseen changes that took place during the policy term. An audit can result in an additional premium, return premium, or no change depending on the figures recorded on the audit worksheet.

Audits are calculated using the information provided on an audit worksheet.

For Workers Comp, this worksheet will require information about the type of positions held during the policy period and the amount of payroll that went towards each type of role. For General Liability, the worksheet is based on company information about revenues earned during the policy period.

If these worksheets aren’t completed, the carrier will perform an estimated audit. This estimate is often much higher than the premium reflected by your actual company information. We urge clients to respond to their audit worksheets in a timely manner to avoid this.

Audits take place at the end of your policy's term. Policy expiration or a mid-term cancellation can both trigger an audit, the process will be the same for all situations.

If you receive an audit endorsement with an additional (or return) premium that seems inconsistent with your accurate payroll or how your business performed, you can always dispute the audit. If this is the case, we would request a blank audit worksheet from the carrier that you can complete to have the audit revised to accurately represent your company.
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