Certain exposures upon which the insurance premium is based cannot be definitively known at the beginning of the policy year, only estimated. Since the basis of premium is only estimated, the insurer is not positive they are receiving the correct premium for the insured exposure. To be assured that the insured paid the correct premium for the exposure covered by the insurance carrier, a premium audit is performed after the policy period ends.

This two-part series-within-a-series:

• Lists the various entities and agencies involved in creating audit rules and guidelines
• Defines who is and is not include in audits
• Details the who, what and how of workers’ compensation audits
• Describes the who, what and how of commercial general liability audits
• Highlights commercial auto and garage audits
• Provides the “ABC’s” (or rules) of premium audits