Liability Insurance Premium Audit and Policy Reviews
We have been performing Workers Comp policy and Liability Insurance premium audit reviews for many years. The need for liability audit and policy reviews became very apparent when I attended the NSIPA Conference a few years ago.
There a very few, if any companies that actually perform this type of review for employers at this time. The genera liability insurance audits center more around proper certificates of insurance, especially in the construction industry.
I had thought that addressing liability insurance reviews may not be a good strategy until I read this article on GL audits from a northern California construction firm. The text from the articles is in the next two paragraphs. I do agree with the subsequent bloggers on the question of audits as unfair business practices.
My liability insurance companies audit methods seem unfair or at the least unforgiving. As many of your know our service regions are often very large and we often take in many remote sub-contractors to handle remote jobs. It’s often not possible to get a new sub-contractors insurance certificates before they begin work.
Then after the fact the sub-contractor is unwilling to provide a copy unless additional work is available. Then at the end of the year you get audited and get charged for all your paid out revenues for your sub-contractors that you’re unable to provide insurance certificates. Also, with some carriers you get also charged an audit premium for paid out material and equipment costs to sub-contractors. If you have had similar experience please contact me off-line. Some of this possibly is an unfair business practice on-part of the insurance carriers.
I will see if I can add some material from our two new liability auditors during this week.
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