If you haven’t experienced an insurance audit yet, chances are you will.
As you may know, insurance carriers will often conduct an audit near the end of a policy period to make sure the premium is appropriate for the coverage provided. However, there are certain steps you can take after that inevitable fact, which can help you move forward successfully.
We recently sat down with George Gavaris, the owner of Central Insurance Agency (also known as CIA), to discuss what comes after the audit process. George is a longtime insurance industry expert who has a thorough understanding of all phases of the audit process. “You’re generally stuck with two options after an insurance audit,” says Gavaris. “But on the positive side, there are ways to keep from getting in the situation to begin with.”
Your 2 options AFTER an insurance audit:
Option #1
At renewal time, negotiate a lower dollar amount with your current carrier against the audit findings and hedge your bets against cancellation of your policy. If you believe the additional charges are unwarranted, negotiate with your insurance provider. Provide evidence to support your case. Speak to your broker to evaluate if any changes to your coverage or business operations can help reduce future premiums.
OR
Option #2
Move your policy to a new carrier, take care of the audit issues, and lose the worry about cancellation for the time being. Review the records of the audit findings with your new broker and take the necessary actions resulting from the audit.
“Neither option is ideal and can cost you more money,” says Gavaris. “For that reason, at CIA we try to keep our clients from ending up in these less-than-ideal circumstances.”
Gavaris also advises that, whatever the outcome of an audit, your broker should be proactive before the next renewal by conducting an annual policy review. This review will ensure that a client’s business operations and desire for growth are in line with their policy. Anything less can leave a policyholder more vulnerable to an audit and higher premiums.
Finally, he advises, you want a broker who has access to multiple carriers because it will provide you access to many more options going forward.
To learn more about CIA and the audit process, please go to https://ciainsures.com/insurance-audit-counseling/