All About Audits continued

Basically, we follow these steps:

1. A policy expires or is cancelled
2. A request is sent to Overland for a physical audit (or a form is sent to the smaller insured)
3. An Overland Solutions field employee makes a site visit and gathers the proper documents, including tax information and payroll ledgers
4. The documentation is sent to our office.
5. I review it and pass it on to Heather Giovannelli
6. Heather works up what the premium should be based on the audit documentation and compares it to what they’ve actually paid.
7. Claims reported on the policy are reviewed
8. I review the audit and pass it on to Underwriting and then on to Accounting
9. A refund or invoice is issued, depending on the result of the audit.

The difference between the premiums paid by an insured during the policy's life and the audited amount can be substantial. That’s why it is so important to get accurate audits.

Since the switch to Overland, our audits come back quicker (usually in under 60 days). Overland has proven to be very accurate with their documentation. Having the audits produced quickly, along with help from Heather and a well-defined process in place has helped us to cut our in-house turn-around time on audits considerably. Most policy audits result in a return to the insured. But whether we are returning some of their paid premiums or invoicing for additional premiums, accuracy is critical. The quicker we perform an audit, the better it is for everyone.

One of the things that makes audits interesting is that we work with every department in the company, from Underwriting and Claims to Accounting and MIS. Right now, we’re working with the MIS department to develop a new audit program that will help to streamline the process even more.