Independent Insurance Agent

Premium Audits

All Commercial Insurance presents this information on Premium Audits to help you coordinate your insurance and payroll accounting so that you may better determine actual costs of your Workers' Compensation insurance policy.

The following information is based on generally accepted insurance principals. Many of the procedures concerning Premium Audits are specified by California law as well as state insurance regulations. Our intent is to save you time and effort during the premium auditing process, and quite possibly, money in lower premiums.

The Purpose of a Premium Audit
Service helps determine a fair equitable assessment of your company 's insurance premium.

Why is this service Necessary?
The premiums for both Workers' Compensation and General Liability coverage are based on payroll, commissions, cash disbursements and other variable which may charge from time to time. The insurance company will determine your premium at the time the policy is written based on estimated figures provided by you to All Commercial Insurance.
Your premium will be evaluated and determined at the end of the policy period based on your actual payroll figures. If the final audit premium is less than the estimated premium or the premiums charged on your interim voluntary reports, you will receive a refund of any amount overpaid, although minimum premiums may apply. In some cases, the insurance company will perform a pre-audit within three months of policy inception. This affords you an opportunity to ask questions regarding proper classifications and payroll segregation's to prevent surprises at final audit time.

Accurate Records / Accurate Premiums
Your policy calls for a Premium Audit of you financial records that concern your insurance to help determine proper premiums. Keeping accurate records of this information if essential to evaluating the correct premium for your company. When you segregate items such as: overtime premiums, tips, gratuities, severance pay and IRS code section 125 benefit deductions, you can lower your insurance premium costs.