What to Expect During a Business Insurance Audit

A business insurance audit should be considered a routine part of maintaining suitable coverage. But for many business owners, this process can be confusing or even feel overwhelming. Fortunately, at Pan American Insurance, we can help you understand what to expect when auditing your coverage and how to prepare.

Why Are Business Insurance Audits Conducted?

Insurance carriers conduct audits to verify that your policy accurately reflects your business’s operations and exposures. An appropriately conducted audit can help confirm that you’re paying the correct premium for your coverage and that your policy limits are appropriate for your current needs. Audits are especially common for policies like general liability, workers’ compensation and commercial auto insurance.

What Happens During the Audit?

Typically, you’ll receive a notice from your insurer outlining the audit process and requesting specific information. Audits may be conducted in person, over the phone or online. The auditor will likely review your business records to verify various details of your operations, including the following:

• Payroll records and employee classifications
• Sales figures and revenue reports
• Subcontractor information and certificates of insurance
• Vehicle usage logs (for commercial auto policies)
• Job descriptions and business activities

What Documentation Should You Prepare?

Having accurate and organized records is key to a successful audit. Be prepared to provide your auditor with the following documents:

• Payroll summaries and tax forms (e.g., 941s or W-2s)
• Sales and revenue statements
• Certificates of insurance for subcontractors
• Detailed job descriptions and employee lists
• Vehicle mileage and usage logs

How Our Team Can Help

Our team is ready to guide your company through every step of the business insurance audit process, helping you gather the necessary documentation, clarify any confusing requests and review your records for accuracy. We can also help you avoid common pitfalls that could lead to unexpected premium adjustments, such as misclassifying employees.

Contact us today to learn more about the business insurance audit process and make sure your coverage is ideally suited to your needs and circumstances.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.