Premium Audit Services

Harford Mutual Insurance Group performs premium audit services for its policyholders to determine the actual exposure(s) and makes adjustments to premium as necessary.

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:

  • Payroll
  • 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 60 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.

In addition to our physical and virtual audits where an auditor is onsite or making communication via telephone, Harford Mutual Insurance Group also conducts mail audits.  Mail audits will have a letter directly emailed or sent via postal service that explains an audit is to be completed.  These audits are completed directly by the insured.  The insured will sign on to our audit tracking system using the username and password they are provided in the audit notification letter.  The insured will follow the instructions and complete and submit the audit via the online system.  If there are any questions during this process, the Audit Administrator can be contacted for assistance.  To access the Mail Audit website please visit: Premium Audit

Audits may be conducted by an employee of Harford Mutual or an authorized independent audit company. The following is a list of our Premium Auditors and independent audit companies:

Harford Mutual Employees

  • Patricia Wroe, Premium Auditor Supervisor
  • Charles Martin, Premium Auditor
  • Randy Pugh, Premium Auditor
  • Daniel Sommerville, Associate Premium Auditor
  • Carrie Bare, Premium Auditor
  • Shannon Shelley, Premium Audit Administrator

Authorized Independent Audit Companies

  • NEIS Premium Audit Services
  • RLD Associates, Inc.
  • Sedgwick

Workers’ Compensation pay As You Go

The Pay As You Go program relies on real-time payroll to calculate Workers’ Comp premiums, resulting in more accurate premium payments with less of a chance of paying too much throughout the year or having a premium adjustment at the end of the policy term due to under-reported payroll. Workers’ Compensation policies over $5,000 in premium are eligible. Review Pay As You Go FAQs

  • Pay premium incrementally
  • Real-time premium amounts based on submitted payroll
  • Avoid late payments with automatic payment deductions

Talk to your agent today about how you can benefit from the Pay As You Go program and the value it can bring to your business.

Frequently Asked Questions about Premium Audits

Review Premium Audit FAQ