If you're like most people, "audit" is a word that sets your heart pounding - and not with excitement. Believe it or not, an audit can often have a positive impact on the long-term financial health of your company (even if you end up owing money).
Not buying it? See below for a couple of our real audit cases that resulted in 5 to six figure corrections IN FAVOR OF THE INSURED BUSINESS.
Classification accuracy matters
Correctly identifying your NCCI class codes is one of the primary goals of an audit.
In a recent audit case, the employer (who was less than eager to complete the audit) ended up saving more than $19,000 in premium because the insurance company auditor caught a classification error.
In another - an audit of a recycling company resulted in $100,000 credit to a client when the auditor realized the company had changed some business practices and, therefore, its employee classifications.
Not only can classification have a major impact on your premium, it can make all the difference in your company's experience factor (experience mod).
Beyond the audit
We are ready and able to assist you throughout the year to help you prevent problems at audit time. How?
* Classification review. We're available to review your classifications with you prior to audit time or at any time during your policy year.
* Fraud prevention. General contractors often run into premium fraud issues with subcontractors. We can help ensure that subcontractor documents, such as certificates of insurance and work comp exemptions, are valid. We can also educate you on how to verify employee documentation, such as Social Security numbers.
Give us a call
We want to help make a difference, and you may be surprised at how valuable that difference can be.