It’s an awkward thing when you have an insurance audit.
A stranger, sometimes not even employed by your insurance company, spends hours pouring over your confidential information (P&L statement, list of jobs, list of subs, certificates from subs).
Ultimately, this person has authority to charge or not charge additional premium.
Here are some best-practice tips for interacting with the insurance auditor and making the most of this situation.
1) – When the insurance auditor arrives at your office, have a comfortable, quiet place prepared for them to work.
A distracted auditor is more prone to mistakes, and audit mistakes often result in additional premium.
2) – Treat the auditor as a respected guest.
One of the main complaints for many insurance auditors is that the insured was rude, and negative impressions can make a difference in your insurance audit.
3) Make sure that the person who is meeting with the insurance auditor (office manager, CFO, controller) has cleared their calendar so they won’t be interrupted with phone calls or meetings.
They need to devote full attention and be ready to answer questions and retrieve data that the auditor might need.
4) Have all your paperwork ready and organized.
The best and easiest way to ruin your audit is by being disorganized. If the auditor can’t get a clear picture of company data (revenues, payroll, subcontractor costs), he/she will err on the side of higher figures or class codes with a higher rate.