General Liability Insurance Audit

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What Is a General Liability Insurance Audit?

What is a general liability insurance audit A general liability insurance audit examines your business’ payroll and risk exposure. An audit makes sure you’re paying the correct amount for general liability insurance, and that you’re getting the right amount of coverage for your business.
 

What Is the Purpose of a General Liability Insurance Audit?

An audit ensures your business has the right amount of general liability insurance coverage. Your business can change a lot from year to year. For example, if your sales increase, you may have to hire new employees to help with increased demand. Or, you may have downsized around the holiday season, so you had fewer employees at the end of the year. In either case, you may need to adjust your coverage amount based on the changes to your business.
 

What Happens in a General Liability Insurance Audit?

General liability insurance audit The word “audit” may sound stressful, but don’t panic. At the beginning of the year, you pay a certain amount for general liability coverage. If you’re asked to go through an audit at the end of the year, an auditor from The Hartford reviews your business’ payroll and other documents to determine if the premium you paid was accurate.
 
A general liability audit looks at:
 
  • Your business’ gross sales
  • Job duties of employees and independent contractors
  • Changes from the prior year
Depending on the audit results, you could:
 
  • Get a refund if the premium you paid at the start of the year was higher than what you need now.
  • Have additional premium because you needed more coverage, so you’ll have to pay the difference.

Preparing for a General Liability Premium Audit

Having the necessary documents and information can make for a smooth audit. Some documents you may need include:
 
  • Payroll or sales reports
  • Certificates of insurance
  • Tax documents
  • Subcontractor or independent contractor documents

Do I Have To Do an Insurance Audit?

Insurance companies may perform an insurance audit at the end of the year for:
 
If you’re notified of an insurance audit, it’s important to send your insurance company any documents or information they ask for. Completing a general liability insurance audit, or any type of insurance audit, ensures you’re paying for and getting the right amount for coverage.
 
Be aware that if you don’t complete an insurance audit, your insurer can:
 
  • Charge a premium increase. In some cases, this can be a significant amount.
  • Cancel your policy, leaving you without coverage.
  • Report you to a collection agency if there’s a balance due on your premium and you don’t pay it.

Learn More About General Liability Audits & Coverage

Choosing the right policy and coverages is important and can help you run a successful business. We’re backed by more than 200 years of experience and know every small business owner has unique needs. Our specialists are here to help you every step of the way. So if you need help completing a general liability insurance audit or have any other questions, we’ve got your back.
 
Get a general liability insurance quote today and learn how we can help your small business.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
 
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