Surprised by an Insurance Audit?

A commercial insurance audit is a review by your insurer to verify that the information used to calculate your premium — such as payroll, sales, or square footage — is accurate. If your actual figures are higher than estimated, you may owe additional premium. If they’re lower, you might get a refund.

Businesses often call audits “surprise” because they’re not expecting them, but most commercial policies include an annual audit in the contract. If your insurer doesn’t have up‑to‑date records, they’ll initiate an audit to reconcile estimates with actual figures.

✅ Keep accurate payroll and sales records throughout the year.
✅ Understand what your policy includes and what counts toward premium.
✅ Set aside funds in case your audit reveals additional premium is owed.
✅ Work with a local advisor who can guide you before and during the audit.

Yes — to an extent. If errors are found in how your insurer classified your business, calculated your payroll, or included ineligible figures, you can dispute or appeal the audit results. A knowledgeable advisor can help you review the auditor’s findings and present corrections or supporting documentation.