3 Things you need to Prepare for an Insurance Company Audit

There are businesses or companies that instead of looking on the good side of auditing they look at it as a danger. It is because they have a fear of knowing what will be the results and if that could affect the coverage that the insurance is providing.However you cannot avoid the fact that the insurance companies are going to conduct insurance company audit because they need to know and make sure that premiums that you are paying are in the same phase with their service.There is nothing to be afraid if there is no fraud happening within your firm.

When the auditing needs to be done, the auditor will contact you in advance to inform you about what you need to prepare or the necessary records for their examination. It will be a week or two in advance that they will let you know about the audit. There could be records that the auditor need to access and you should agree because it could be part of the clause on the policy that you must agree to audit. When there is evidence that there is fraud on the documents the insurance company will report to the proper investigative units of the government.

There are three things you need to prepare so the auditing will go on the right track.

  1. Let all the requested records and files available. Preparing those will make the auditing easier and smoother.The maintained records that your accountant prepared should be brought to your office for auditing. The auditing can actually be conducted to your office or to the accountant’s office.
  1. If your other workers are not covered by the insurance that will be audited, make sure to get the necessary insurance certificatesproving it. Prove to the auditor that these workers are not covered by their insurance and there should be no additional premiums that you need to pay.
  1. Discuss with your insurance agent about the record-keeping formulas with your accountant. Discussing the proper bookkeeping will help you in checking about the partial credit that you may be entitled when you are paying overtime against the total payroll for the hours of overtime.

After auditing, the auditor is going to issue the report and then insurancecompany is going to adjust the premium either up or down. You as business owner have the right to check the adjustments and question it. The agent should be able to explain to you about the adjustment and you can appeal on the decision providing you have evidences to back you up about your claims.

You should be able to completely review all the report so you will know what could be the adjustments and what you can do if the adjustments are incorrect. Be vigilant in checking so you do not have to pay for more or to just accept the decision of the insurance company. Be sure that everything is documented and keep your documents for your future references. This will be supporting you on your appeals just in case.