​Premium Audit

 

As your business operations change, so may your insurance premium. At Liberty Mutual Insurance, we conduct premium audits to make sure that the premium you pay for your coverage accurately reflects your business's operations over the policy period. An audit doesn't always mean a higher premium. In fact, it could be a positive experience for your company because it may lower your premium.

What is the purpose of a premium audit?

The purpose is to determine actual exposures and classes of operation for the coverage we provided. A premium audit protects both of us. Our auditors undertake this review to learn if you overpaid for coverage, in which case your final bill will be reduced. If you underpaid, your final bill may be adjusted upward. Finally, if risks, coverages, and exposures match what we projected, your final bill remains the same.

In addition, information filed as part of unit statistical data reporting determines your experience modification as well as establishes appropriate premium rates for each state.

How are premiums audits conducted?

  • For mail or phone audits, forms are sent to you with detailed instructions for completion and return. Following review, an auditor may call to seek clarification or additional information.
  • Based upon statutory requirements, complexity, or premium size, an in-person audit may be required.

What kinds information will the auditor request? 

Typical information an auditor may request at the time of audit is listed here. If there are multiple companies insured under your policy, the auditor requests this information for each company.

  • Description of company operations
  • Officers or owners names, titles, and duties
  • Employee names and job duties
  • Number of employees at each location

What records will be needed?

The auditor will be able to obtain most of the necessary information from one or more of the following:

  • Payroll and sales journals and summaries
  • Individual earnings records; workers compensation; employee earnings summaries
  • Cash disbursements journal
  • General ledger
  • Quarterly tax reports
  • Financial statements
  • Subcontractor costs and certificates

Learn More

If you have questions about the premium audit process, please review the information below, including definitions of frequently used terms, or contact us for more information at the phone number or email address listed to the right.

 

​Premium Audit Questions

For questions please contact our customer service team:

1-888-224-9246
Email
Online Request Form
Fax: 1-800-800-3723 

If your policy number is in the 15-character, alphanumeric format (e.g. WCC-123-456789-015):

1-800-231-3484
E-mail
Online Request Form
Fax:
1-603-422-0144 (Mail Forms)
1-603-334-0291 (Disputes)