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Preparing for Insurance Audits

When people hear the word “audit,” they tend to panic. However, in many sectors audits are just part and parcel of business. The insurance industry is one of these. When you begin your insurance policy, the carrier estimates your potential exposure to loss in terms of overall costs. At the end of the term, the company compares the estimate with the actual exposure and activity and adjusts your premium accordingly. In other words, the audit is a good thing as it ensures that what you pay is based on your actual activity. Read more