Audit

An audit reviews actual exposures such as payroll, sales, or vehicles to determine final premium.

Audit is an important insurance concept because it can affect how coverage is selected, priced, interpreted, or applied at claim time. In practical terms, it helps explain what the policy may do, what the insured may be responsible for, or how the insurance company may evaluate a covered situation. This term is commonly associated with Workers Compensation, General Liability, Commercial Auto. For business insurance customers, understanding Audit can make it easier to compare policies, ask better questions, avoid coverage gaps, and understand what may happen before, during, or after a claim. The exact impact of Audit depends on the policy form, endorsements, limits, deductibles, exclusions, state law, and the facts of the loss or account.

Example: Example: A business owner comparing quotes for workers compensation coverage asks whether Audit could affect contracts, claims, or required limits. The agent reviews the policy wording and explains how it may apply to the business operation.