Streetsmart insurance Blog
Every year, your insurance company performs an audit on your business insurance policy to make sure that they have priced your policy appropriately. If your workers compensation or general liability insurance premium has gone up, your insurance company has determined that your premium did not adequately reflect the risk that they were taking on when they issued your policy.
Why Do Insurance Companies Perform Audits On Business Insurance Policies?
Your business is constantly changing, and your insurance company needs to adjust your business insurance policies to make sure that they meet your current needs. Your insurance provider performs audits to make sure that they have valued your company and your business assets appropriately. Many business owners see this as an inconvenience, but it is the only way to make sure that you get the coverage that you need.
If your insurance provider undervalues your company, your policy will not provide you with enough coverage if you are forced to file a claim. On the other hand, if they overvalue your company you will be forced to pay additional costs for unnecessary coverage. An audit gives them the ability to offer you a fair price for your insurance policy.
Why Did My Rates Go Up?
Your rates can go up for any of the following reasons:
You Had An Increase In Sales Or Payroll Expenses – Your insurance company uses your sales record or payroll expenses to determine how much they should charge you for your business insurance policy. If your sales revenue increased over the last year, your insurance company will adjust your coverage and increase the total cost of your premium on your general liability insurance policy. If your payroll expenses go up, they will increase the cost of your workers compensation insurance.
You Did Not Account For All Of Your Employees – If you hire uninsured subcontractors, your insurance provider could raise your rates on your workers compensation insurance policy to expand your coverage.
You Did Not Complete The Audit On Time – If you put off your insurance audit, your insurance company can raise your rates for failing to disclose the current value of your business.
Street Smart Insurance is committed to providing affordable coverage.
Whether you are looking for your first business insurance policy
or you are shopping for a better price, our agents are ready to help.
Call us at 732-462-8343 for a free quote!