Employers


Are you comfortable with your auditor?

This is actually very important, because you should be able to talk freely with your insurance auditor. With an auditor you trust you will avoid worrying about the audit every year and have the most accurate results, since the auditor knows your business so well. This is a great situation for you and everyone else involved in serving your insurance needs.

Is your auditor familiar with state rules and regulations?

Your employees are already stretched thin - trying to do more with less is the way to win in business today. It makes sense to take a job that is only done once per year and have it done by experienced specialists, who can do the job quickly and accurately. The annual insurance audit is exactly that kind of job and requires specific knowledge of rules for 50 different states! Each set of rules has a direct impact on the premium you pay due to things like adjustments to exposure base, experience modifications, and schedule credits. In addition you'll want someone who is familiar with your company, the insurance company, and the insurance agency or broker, and knows when to communicate with each of these parties.

Does the auditor have a plan to keep your company efficient?

A typical work year has 240 days to do work after eliminating weekends, holidays, etc. If your employee spends a day a year working on the annual insurance audit, you have lost 8 hours of productive work that could be spent doing something that supports revenue generating. Many larger clients can spend many days working to prepare the audit data and then answering the auditor's questions. If you eliminate those hours of work for your employees you increase revenues and of course save the money from employee expenses. Policyholders often are frustrated that every auditor seems to want something different, and that causes them a lot of extra work. A consistent format each year avoids "reinventing the wheel" and being familiar with your company and processes eliminates most of the work and guesswork for your employees. The auditor must use an industry standard format that makes the final audit a snap for you and also eliminates questions after the audit. Any questions the insurance company has should be handled by your auditor to save you more time.

Is the auditor knowledgeable?

Auditors must ensure the audit gets done in a format the insurance company can use and the audit identifies all the credits and adjustments you are entitled to. The auditors must know all available deductions and adjustments, and also know your company from working with you every year, so you no longer need to "retrain" a new auditor every year on what your company does. Auditors must also know carrier personnel and processes, which is very important if a situation arises that needs to be resolved. Your auditor is in place to champion your cause and make sure the final audit is accurate.

Is the vendor organization a "Team player" seeking unity and stability?

This is important in a top performing premium audit process. The auditor that understands your company AND the industry can be your best champion and resource. The final audit can affect and involve the agent, policyholder, state bureau, underwriter, audit department, claims, and even legal departments. It is important to have an organization which is committed to win-win for all parties involved. If your auditors say they "fight" the insurance companies and "force" them to do things, BEWARE their intent might be to frighten rather than educate, to divide rather than unify. We have worked with hundreds of insurance company personnel and dozens of insurance companies and they all share the goal of accurate final exposures that do not overcharge anyone. Providing the insurance company with accurate information properly formatted and in compliance with all state rules is they way to ensure you are not overcharged for your annual audit, and is essential to a long term insurance program that minimizes your premiums and helps you operate with maximum efficiency.