What is a premium audit?

[Gaurav]

I have recently come across the term of premium audit when applied to insurance, but I do not really know what that is. Is it an insurance policy review, adjustment of the premiums or otherwise? What is a premium audit? And why should this be important? They would be so glad to have examples!

 

[isabel]

A premium audit is an examination of the actual operations of the business that is taken by your insurance company to re-establish your insurance premium depending on the actual exposure such as payroll or sales. As an illustration, when your remuneration was less than projected, your premium might reduce.

 

[Gsusangrey]

A premium audit is a review conducted periodically by an insurance company usually following the expiration of a policy to review the actual exposure basis of a business (such as a payroll or sales) against the original estimates. It aims at arriving at the ultimate, correct premium and having fair, correct pricing.

 

[Jarwish]

A premium audit is a review conducted by an insurance company after a policy period ends to verify actual business operations, payroll, and revenue. It ensures the insured paid accurate premiums based on true exposure, adjusting costs up or down depending on verified data and risk changes.

 

[brook]

A premium audit is a periodical review made by an insurance company typically after a policy has expired to examine the actual basis of exposure of business (such as a payroll or sales) with the initial estimates. It strives to get to the end, right premium and be fair, right pricing.

 

[nikhilrajoria]

Premium audit is where your insurance company will audit your payroll or sales or any other information so as to make sure that you are paying the appropriate premium to cover.