Business Insurance Renewal and Premium Audit Checklist

A renewal review helps your agent assess the business for the coming policy term. A premium audit checks actual activity for a policy period against the information used to estimate the premium. An audit may result in additional premium or a refund. These are different requests, even when they arrive around the same time.

Ask which policy is involved, which dates the reports must cover, what documents are required, and when they are due. The insurance period may differ from your tax year. Keep renewal estimates separate from the actual results requested for an audit.

For a sales-based policy, your insurer may request a profit-and-loss statement, sales journal, sales-by-customer report, or other records showing gross sales. Ask which report and accounting basis the insurer needs.

Have your bookkeeper check that the reports tie to the underlying records and explain unusual items. Customer receipts, loans, owner contributions, and transfers between accounts need to be identified correctly. Give the insurer the information it requests rather than adjusting sales yourself to reach a preferred premium.

Gather payroll reports for the requested period, including the owners, officers, employees, and former employees the insurer asks you to report. Keep the requested federal and state payroll filings available as supporting records.

Describe what each person actually does and where the work takes place. Show overtime separately where your reports allow it, and preserve time records when duties vary. Give your agent or auditor the facts so they can determine the applicable classifications and treatment. Do not assume that a payroll tax total is the same as the insurance payroll basis.

Prepare a list of subcontractors and other outside labor, with amounts paid during the requested period. Keep invoices and describe the work, dates, and work locations. Identify labor and material amounts when the underlying records support that detail.

Gather the certificates of insurance requested by your agent or insurer for the dates the subcontractors worked. Ask about missing certificates or gaps in coverage dates before submitting the packet. The insurer determines how those payments are treated under the policy and applicable rules; simply labeling a vendor a subcontractor does not settle that question.

Tell your agent about changes in services, employee duties, work locations, states of operation, subcontractor use, and expected payroll or sales. For renewal estimates, label assumptions clearly, such as a planned hire or a new service line.

An accountant can help organize historical figures and explain the reports. Your insurance agent reviews coverage needs, and the insurer applies its policy and rating rules. Organized records support that review; they do not guarantee lower premiums.

Use the checklist below to organize the handoff. Mark items that do not apply and ask your agent or insurer about anything you cannot provide. Confirm the recipient and use the secure submission method they specify.

Save a copy of what you submit, including the report dates, assumptions, and any explanations. Keep an open question list so that an estimate or missing document is visible rather than quietly treated as final.

Which figures are actual results for the audit, and which are estimates for renewal? What payroll or sales basis does this policy use? How should we document mixed duties, subcontractors, or a missing certificate? What should we send if a requested filing is not available yet?

The insurer's request, policy terms, and applicable state rules control. This guide covers financial record preparation and general education. Coverage advice, worker classification decisions, premium calculations, and audit disputes need the appropriate insurance or legal professional.