Conducting a Premium Audit

Why is a Premium Audit Conducted?

When ClearPath Mutual initially underwrites an account, we determine a premium estimate based on a few things - the type of work performed, the amount of payroll, and the company's claims record. Since the type of work and the payroll amounts can change during the policy period, an adequate premium charge is more properly figured at the end of the policy period when the true extent of the actual exposures is known. Therefore, ClearPath Mutual performs a year-end audit on each account at the end of the policy year. Sometimes an audit shows that the policyholder's actual exposures were more than estimated and we bill for the additional premium due, and sometimes an audit reveals that a policyholder's exposures were less than estimated and we issue a refund of premium. If a policyholder has any questions or disagrees with their audit, we ask them to contact their agent within 30 days from the date of the audit.

How is a Premium Audit Conducted?

ClearPath Mutual's audits are performed in two ways - either by phone or with an in-person visit to the policyholder. Typically accounts with over $5,000 in annual premium will have an auditor visit the company and perform the audit in person. The auditing service that represents ClearPath Mutual is Overland Solutions, Inc.