News Edition
Running a business is a very complicated job that doesn’t come with any instructions, unfortunately. That’s why asking for expert help is a very smart solution for more complicated business issues. For example, when your business has legal issues, the usual response is to hire a legal expert. Similarly, when it comes time for your commercial insurance auditing, hiring an insurance premium expert is generally good practice. But why is an insurance premium expert even necessary?
For business insurance, the premium of a policy is merely an estimate of what coverage our business will need for the year. In order to rectify an issue between the estimate and the reality for the past year, an insurance audit is done. This audit is usually done when the policy expires, but can be done up to 90 days after the expiration date. If you overpaid based on your estimate, you will receive a refund, but if you underpaid, you’ll have to pay an additional bill for your insurance.
Unfortunately, insurance policy premium is not based solely on your business’s financials. Within that price, there are also different rates based on the proper classification for the business and any internal auditor bias. Because of these compounding factors, as many as 50% of business owners may have been overcharged during their audit process. In a $60 billion workers’ compensation market, this can mean that upwards of $6 billion is mistakenly charged.
So, during this audit, what kind of documents can you expect to submit? You would need to provide proof of payroll, which includes journals and summaries as well as individual earning records. You must also include cash disbursements, totaled by account and including any amounts given to subcontractors. Another type of expense report includes cash receipts and one-time expenses, such as service and repair. Then, you need to provide business revenues by providing tax records, income statement reports, gross sales, and corporate returns. Lastly, you need to provide current proof of your business insurance’s, such as general liability, worker’s compensation, and any other business insurances.
With the sheer amount of documentation you need to provide as well as actively tracking your audit’s progress, it can be daunting for any business owner. Fortunately, companies like AdvoQates harness modern technology to make it easier for you and your business. With their team of policy audit experts, they serve as the primary point of contact for your insurance company’s auditor. From there, they help you collect all necessary documentation and thoroughly analyze it to identify deductions or potential savings opportunities. After that, they send the original records and analysis to your insurance company’s auditor and confirm with the auditor that the classifications and savings are the same.
Ultimately, whether you manage a business in healthcare, retail, or sports teams, you can benefit from a policy auditing company. With teams of experienced policy audit experts and AI at their disposal, they make sure to look through every detail of your business’s insurance. In order to make sure you get the best price on your commercial policies, it’s best to use companies like AdvoQates.
