As a business grows, it gets more fleshed out in a variety of ways. Typically, a larger business usually means that they are more likely to have insurance and more likely to have larger insurance policies.
However, business insurance is much closer to an estimate of how your business will perform rather than a perfectly defined number. So, if this estimate is greater than reality, you will get credit back, and vice versa. So what kind of factors go into what determines your policy premium?
A Look Inside the Insurance Premium Audit Space
The main factor is your business’s financials. This means employee payroll and cash disbursements to subcontractors. However, one-time expenses for service and repair are also included. Conversely, documentation proving gross sales and corporate returns are also needed. Tax records on both the federal and state level help to paint a fuller picture of both revenue and costs.
In addition to a business’s financials, proper classifications and applicable business rates are also crucial to your premium. If you are in a risk class that is prone to insurance claims or more likely to have more costly claims, your rates are going to be higher. Getting all these things together can make your premium extremely difficult to calculate, which is why policy audits seek to rectify any differences.
Conclusion
Fortunately, the power of modern technology has allowed for companies who can audit your insurance policy for you. Insurance premium audit experts like AdvoQates can predict premium trends and identify any abnormalities in your premium costs. With their team of experts, they also collect your business documents and analyze the best price you are eligible for.
Once they compile their report, they present it to your insurance company to make sure all classifications and rates are the best applicable for your business. Regardless of the industry your business is in, taking advantage of companies like AdvoQates is the best way to ensure you’re getting the best price on your business insurance.
