We provide our clients with impeccably executed audits that help drive down the duration and cost of the audit process. Our commitment to building personal relationships combined with a dedication to excellent audit execution ensures a seamless and smooth experience for carriers and policy holders.

Our premium audit services cover a wide spectrum of policy holders

  • Construction firms
  • Manufacturing firms
  • Professional Employer Organizations (PEO)
  • Professional sports organizations
  • Technology firms
  • Transportation companies
  • Healthcare facilities

Our premium audits provide

  • Customizable reporting to meet specific client needs
  • Easy-to-follow audit reporting
  • Paperless audit creation including all pertinent imaged records

Our expert Auditor Team has experience with a wide variety of policy types

  • Commercial Auto
  • Construction Liability
  • General liability
  • Inland and Ocean/Marine
  • Professional liability (medical and non-medical)
  • Garage Liability
  • Worker’s compensation

Premium Audit FAQ

Why is an audit necessary?

Premium audits help ensure that insurance premiums are aligned with the businesses and activities they are designed to cover. Your policy was written based on estimates at policy inception. As businesses change, policies need to change with them. Audits are performed after your policy has expired to determine the actual exposure. With information obtained from the audit to accurately reflect the state of your business over the policy term, your carrier can properly adjust the premium for your policy. Depending on your state and policy type, audits can be required by state insurance regulations and are common industry practice.

What information is needed to complete the audit?

Depending on the policy type, the auditor will need access to documents that relate to the policy being audited. This may include state and federal unemployment tax returns, payroll journals, individual earning records, general ledger, cash disbursements journal, check register, certificates of insurance, and financial statements such as profit and loss statements, income statements, balance sheets, trial balances and tax returns. Keeping complete and accurate records helps your business run more smoothly and will make your audit a simpler process.

Financial Statements contain sensitive information. Is it really necessary to provide this information?

The requirements regarding premium audits have changed drastically in the past few years. Financials are necessary to the audit process as they contain information vital to accurately assessing the business being audited. A financial report such as a profit and loss statement or an income statement helps to summarize the various types of accounts in the general ledger. These documents help your ISG auditor to more efficiently identify the accounts that may contain subcontract, contract or casual labor without having to review the general ledger in its entirety. It also assists the auditor in verifying the total payroll when leased payroll is utilized. ISG is committed to keeping information confidential to only those parties directly involved in the premium audit.

My coverage has been cancelled or is now with a new carrier. Do I still need to do an audit?

Yes. Audits are conducted for the period of time that coverage was provided for your business. The audit will encompass only that period of time which is subject to premium adjustment.

My coverage was replaced prior to the period you are requesting. What do I need to provide as proof?

A declarations page from the new carrier showing the policy dates, policy number and the name of the carrier, or a Letter of Assumption from the new carrier showing the same information.

The auditor has asked for “Gross Payroll”. What does that include?

Gross payroll includes regular pay,, overtime, tips, gratuities, bonuses, PTO, vacation, sick pay, all pre-tax items such as 401k, Sec 125 Cafeteria Plans, and other pre-tax insurance and investment plans, housing allowances or fair market value for housing provided, and full officer compensation.

The auditor has asked for “Gross Sales”. What does that include?

Gross sales include the revenue for all goods or products sold, manufactured, or distributed, certain operations performed and item rental. There are available deductions from gross sales, which include sales tax, returns and allowances, certain finance charges, and shipping or freight assuming those are shown as separate line item charges on billing invoices to customers.

I have a General Liability policy, and all of my subcontractors are insured. Why do I have to pay premium for “Insured Subcontractors”?

The premium you pay for “Insured Subcontractors” is not intended to extend coverage to those subcontractors. It is a measure of the vicarious liability that exists when utilizing adequately insured subcontractors. “Vicarious Liability” arises when the actions of the subcontractor result in a general liability claim that exposes the insurer to legal costs and potential judgments against the hiring contractor.

Will the auditor be able to determine if we owe money or are due a refund?

No. The auditor is not provided information for premium, payments, etc., and is not able to calculate that information. The auditor is able to provide you with the net chargeable amounts by classification, which will assist you in determining the overall outcome of the audit.

Physical Audits

ISG physical audits are conducted on-site by our team of expert auditors with strong industry backgrounds, delivering audits developed with sound evaluation of payroll, financial statements and the general ledger. We focus on audits of any size based in the Southeastern US, and welcome inquiries for larger audits Nationwide. We provide:

  • A deep understanding of policyholder operations, employee job duties, and subcontractor activity
  • Full exit interview upon audit conclusion ensuring complete accuracy
  • Thorough audit quality review by a team of premium audit experts
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Telephone Audits

Our professional auditors efficiently conduct mail/voluntary audits on a variety of small-to-mid-sized policies. Our telephone audits include:

  • Proactive delivery of information to your policyholders for audit preparation
  • Interview scheduling that is coordinated for the convenience of all parties involved
  • Superior customer service and response time

Mail / Voluntary Audits

ISG’s professional auditors efficiently conduct mail/voluntary audits on a variety of small-to-mid-sized policies. We provide:

  • Exceptional customer service and auditor professionalism
  • Effective and responsive communication throughout audit
  • Timely response throughout audit process and final audit delivery
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ADDITIONAL SERVICES

Premium Audit Review

The depth of the ISG Audit Team empowers us to drive detailed review processes, instrumental in identifying and correcting any audit errors.

Dispute Resolution

We efficiently and professionally manage all facets of the dispute resolution process, from receipt of a statement of dispute to final determination based on carrier guidelines.

Classification Inspection

ISG offers an extremely thorough and detailed report utilizing its expertise in various industries as well as NCCI, PAAS and individual state statute reference materials to provide accurate classification recommendations.

Expert Witness Services

Our experience can assist you by providing effective independent expert opinions in legal disputes regarding premium audits and processes.

Consulting

We help clients with all aspects of premium audit processing, including workflow management, review processes, documentation procedures, and more.

Streamline your audit experience!

ISG’s depth and breadth of experience means you will work with an Auditor who can effectively manage your audit projects while bringing new insights to the table.

Common Questions

Why is an audit necessary?

Audits help ensure that insurance premiums are aligned with the businesses and activities they are designed to cover. Your policy was written based on estimates at policy inception. As businesses change, policies need to change with them. Audits are performed after your policy has expired to determine the actual exposure. With information obtained from the audit to accurately reflect the state of your business over the policy term, your carrier can properly adjust the premium for your policy. Depending on your state and policy type, audits can be required by state insurance regulations and are common industry practice.

What information is needed to complete the audit?

Depending on the policy type, the auditor will need access to documents that relate to the policy being audited. This may include state and federal unemployment tax returns, payroll journals, individual earning records, general ledger, cash disbursements journal, check register, certificates of insurance, and financial statements such as profit and loss statements, income statements, balance sheets, trial balances and tax returns. Keeping complete and accurate records helps your business run more smoothly and will make your audit a simpler process.

Financial Statements contain sensitive information. Is it necessary to provide this information?

The requirements regarding premium audits have changed drastically in the past few years. Financials are necessary to the audit process as they contain information vital to accurately assessing the business being audited. A financial report such as a profit and loss statement or an income statement helps to summarize the various types of accounts in the general ledger. These documents help your ISG auditor to more efficiently identify the accounts that may contain subcontract, contract or casual labor without having to review the general ledger in its entirety. It also assists the auditor in verifying the total payroll when leased payroll is utilized. ISG is committed to keeping information confidential to only those parties directly involved in the premium audit.

ISG: Excellence in
Premium Audits

The ISG Team promises to execute your premium audit as though we worked for you as an in-house team. Our success is driven by our team – not only their deep experience in premium audit but also their passion for customer service and dedication to the highest level of service available in the industry.

ISG Premium Audits