Premium Audit Services
Harford Mutual performs premium audit services for its policyholders to determine the actual exposure(s) and then adjusts the premium accordingly.
Audits are completed on various insurance policies including General Liability (written by itself or part of a Commercial Package Policy), Businessowners, Workers’ Compensation, Auto, Garage, and Reporting policies. The premium charged for these policies is often based on estimated exposures. Policies with the following exposures are often subject to audit:
- Gross Sales
- Total Costs — This exposure is often found in policies issued to contractors who use insured subcontractors
- Admissions — Is the total number of people attending an event other than an insured’s employee
- Members — Is the total number of people belonging to an insured’s organization
- Gallons — Is the total number of gallons (such as gas) sold
Audits are usually held within 30 days of the policy’s expiration. The auditor will need to review various records (such as State Unemployment Tax Returns, Federal 941s, payroll records, Certificates of Insurance, Profit and Loss Statements, etc.) to determine the actual exposure(s). The auditor will also ask about an insured’s business operations, employees, and their duties. This information is needed to ensure that a policy is classified correctly and that an employee’s payroll is allocated to the proper classification.
Audits may be conducted by an employee of Harford Mutual or referred to a Premium Auditor or an Independent Audit Company. The following is a list of Premium Auditors and Independent Audit Companies:
- Greta Hittle, Premium Auditor
- ISI Insurance Services
- Randy Pugh, Premium Auditor
- RLD Associates, Inc.