Whether you needed to cover your car or wanted to get help paying for medical costs, you’ve likely had a need for insurance at some point. However, when it comes to being a business, business functions a bit differently. When a business gets commercial insurance such as general liability or worker’s compensation, the premium is based on the best estimate of how your business will perform in the following year.
Since estimations are scarcely perfectly accurate, this means that at the expiration of the policy there is usually a policy audit. When you overpay based on an estimate, you receive a credit. This comes in the form of a check or policy credit if you intend to renew with the same company. Conversely, if your estimate was lower than the reality, your business is liable to send a payment to the insurance company as an additional premium. So what goes into this estimate?
Firstly, your business’s financials are the key metric in determining the scale of your business. Having payroll, cash disbursements, and cash receipts help to paint a picture of your business’s recurring and miscellaneous expenses. Similarly, your business must provide tax records to confirm your revenue sources and totals. Then, your insurance company needs to find the proper classifications and rates.
However, with all this complexity, mistakes or incorrect decisions are inevitable. Thankfully, companies like AdvoQates have their own team insurance premium audit experts to look at your policy. They help you to gather the necessary documents, then they make their judgement about your business’s best rates and classifications.
After they make their report, they communicate this to your insurance company and ensure that the insurance company agrees to and abides by the analysis your policy auditors provided. Regardless of how big or small your business is, if you want to make sure you get the best price on your commercial insurance, AdvoQates is the option for you.
