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Audit Review & Counseling

Turn to CIA for expert guidance.

Audit Review and Counseling Services

The mere mention of an insurance audit can induce panic in the most stoic business owner. An insurance carrier will often conduct an audit near the end of a policy period to ensure the premium is appropriate for the coverage provided. Workers’ compensation is typically the number one auditable policy, and general liability runs a close second.

Insurance Audit Issues are Common

Often, a business owner will turn to the company’s accountant or payroll department to prepare any documentation for the impending review. However, this is where problems can arise.

If the accountant sees payroll as one total cost, this all-inclusive figure is provided to the auditor. As a result, there’s every chance that the rate will increase. Why? Because the auditor is going to apply the total payroll amount to the highest and most costly job classification.

No matter the policy, a particular business class pays a higher premium rate than another, primarily based on risk. For example, is the worker in the field all day or at a desk? A customer service representative’s rate is much lower than that of a security guard at a post, for example.

Worse yet, a company’s policy can be canceled by their current carrier for either non-compliance with the audit or for owing money against an increased premium.

The Key Component to a Successful Insurance Audit – Be Proactive

An experienced insurance partner can help. The CIA Team knows which aspects of your operation are driving premiums, and job classification is at the top of the list. To help protect your business from miscalculated and higher premiums, your insurance broker can guide you through the entire audit process, including proper job classification, to save you money on your current and future premiums.

But don’t wait until the last minute to involve your insurance broker. Ideally, the best time to have your broker conduct an audit is in the middle of a policy’s effective dates – before your carrier typically looks to do one. Why? Because then your broker can do an audit review in advance to mitigate any issues.

CIA can audit your existing policies, identify errors or omissions, help you correctly classify employees, and create insurance packages that meet your specific needs. Our brokers can also advise you on ways to incorporate insurance costs into fees. Finally, we can also assist with insurance audits and even represent your company during an audit. Finally, we can even represent your company during an audit. Request a CIA Audit Review today.

The difference was apparent from the start! After years of dealing with insurance brokers who have one insurance company loyalty, we were left with the feeling we just didn’t matter! That all changed when we went with CIA Insurance as a client! They immediately became a partner in meeting our insurance needs and considered our rapidly growing company. Every step of the way they are working with us to make sure we have the right coverage. CIA is a big part of our firm’s success!

– Mark Mancini, Owner, Mancini Architecture PLLC, Smithtown, NY