Posted on March 15, 2010.
Insurance Audits These words tend to make business owners very uncomfortable.
I think it has more to do with party audit.
If you have liability insurance or workers' compensation eventually you will be contacted by an insurance auditor hired by the insurance company to conduct an audit.
An audit is essentially an insurance check "facts" about your business. When your policy was issued, your premium was based on an estimate of the rating information variables, such as payroll or sales. An insurance audit is performed to determine what the actual premium should be based on actual results of your business.
This ensures that you have the exact amount of coverage in the event of an incident.
There are 3 types of checks and you can end up making type 1 or all 3 in your professional life:
The first two types are fundamentally the same, by phone or by mail.
These two types of audit consists of a form sent to you so that you meet the relevant information, then send this information, and all sources of verification, back to the listener for the treatment and examination.
In the case of an audit of telephone, the Auditor General requests an appt to go over the audit with you by phone. The listener uses this call to clarify the points that require more details.
The third type is that most people fear, the physical verification.
This type requires that you and confirm an appt for a listener to come to your place of business or office of your accountant. The audit can take 30 minutes to several hours depending on the size of your company, number of employees and how you prepared your books.
When scheduling the appointment, the auditor will provide a list of documentation you will need to have ready for audit.
Some items you may be asked to provide:
aec records of overtime pay separate
aec titles and descriptions
aec List of officers
aec costs of subcontractor
aec Subcontractor Certificates of Insurance
aec Sales receipts
aec Deposits quarterly federal and state
aec Car Information
The auditor then goes through all records and information entered into a software (accounts usually have a laptop).
At this point, you can answer some questions. If you are unable to be physically check whether the person is not responding, if not all, questions. Also be sure to provide a day and time of the hearing officer may call you later to clarify any missing information.
Possible questions:
aec In detail, what your company?
aec Again in detail, what each employee is?
aec commercial work or residential? Or both?
aec What are your hours and days of operation?
When the auditor, they should review the results with you and you can ask to sign a declaration confirming that they have done.
Many auditors (if applicable) will advise you on how to better prepare for next year.
Once the auditor leaves the audit, they will then re-examine the information and double-check for spelling errors, etc., the check is submitted for review and processing of your insurance company . It can last from several days to several weeks before you find on the final outcome of your insurance company.
If you have any questions during this waiting period, you refer them only to your agent or insurance broker. The auditor has no control or information on your check once it is submitted for consideration.
Some tips:
aec Please remember, the listener is a collector of information only. The.
