Understanding Premium Audits for Business Owners

Truck Insurance Agent CaliforniaBusiness owners love to control their costs because what goes out in costs, means it comes out of their bottom line as profit! One of the simplest ways you can help control your outgoing costs is to have open and regular communication with your insurance agent. Each year as your business insurance policy renews, your insurance carrier may conduct a “Premium Audit.”

I’m being audited? What is a premium audit?

Your business insurance premium is calculated by information you or your agent provided to the carrier at the inception of your business insurance policy. Because businesses grow or sometimes shrink, your carrier wants your premium to accurately represent your current size based off of payroll and business operations. This is a standard process and your participation in the audit can help you control costs as well as be prepared for the future.

Is an audit time consuming?

Not at all. Someone from the premium auditing team will contact you and go over your current payroll, business operations and sales to determine if a change is necessary.

Will my premiums change?

It’s possible. Depending on your sales, size of payroll, operations, employee classifications, and use of sub-contractors, you may pay more, or less.

Should I be prepared?

Keeping great records is essential to any business. Review the Helpful Tips to Prepare for Your Premium Audit provided by Travelers Insurance to help you!

If you have questions about your current business insurance policy or are looking to find a better policy, call Network Truck Insurance Service. We can go over your current business needs and find the best policy at an affordable price. Call our agency for a free quote today! We can also help you with your trucking insurance.