Premium Audit
A Premium Audit determines your insurance policy’s final premium, primarily for Workers Compensation, General Liability, and Businessowners policies. Initially, premiums are based on estimated exposures like payroll, sales, and subcontractor costs.
Compliance with a Premium Audit is mandatory. This process involves examining business records to confirm actual exposures and reviewing operations and job duties to ensure correct classification codes and rates. While most audits are in-house, IMT may use third-party vendors due to time and territory constraints.
Post-audit, you’ll receive a statement detailing any additional or return premium. Non-compliance may result in estimated premiums and potential nonrenewal of your policy.
Types of Audits
- Physical Audit: On-site review of business operations and financial records.
- Virtual Audit: Share records electronically and verify details via phone with an IMT representative.
- Online Audit: Complete the audit on a secure website with a provided user ID and password, typically in 15-30 minutes. Contact the Premium Audit department if unable to complete online.
Required Information and Records:
General Information:
- Business operations overview.
- Owner/officers’ names, titles, ownership percentages, and job descriptions.
- Employee list with names and job descriptions.
Payroll Records:
- Payroll summaries detailing gross wages, overtime, bonuses, etc.
- Federal or State quarterly/annual records for verification, such as Federal Forms 941,
940, 943, W-2, 1099, Schedule C, and State Unemployment reports.
Subcontractors:
- List of subcontractors, work descriptions, payment records, and Certificates of Insurance.
Gross Sales:
- Monthly sales reports, potentially detailing sales by department or product.
- Verification sources like Profit & Loss statements and sales tax reports.
Need Assistance?
Contact our Premium Audit team at 800-274-3531 Ext 881 or Contact Us.
