Inquiries By The Insured
Audits, in general, are an investigation of financial records for the purposes of evaluation. A premium audit specifically determines insurance exposure for the coverage provided. Although the word audit may sound daunting, the process, if you understand it, is very simple. Your Workers Compensation and/or Liability Insurance policies are based on annual payroll and sales. Since these variables change form year to year, the insurance companies estimate the premium for the upcoming policy period. The audit is conducted to determine the premium precisely, to prevent you from overpaying or underpaying for your insurance.
Some documents you may need to prepare for your audit include:
- Sales / Sales Tax Records
- Cash Disbursements
- Payroll / Payroll Tax Records
- Certificate of Insurance
- 1099
- Cash Receipts
- General Ledger
- Recent Income Tax Return