General Liability insurance audit .Please help?

Question

General Liability insurance audit .Please help?

Answer 1

What's the question?  Most GL policies are audited.

Answer 2

Your General Liability policy was issued and rated according to estimates you provided of your payrolls or sales for the year.  At the end of each policy year, your insurance company may contact you to conduct a physical examination (physical audit) of your accounting records in order to determine your actual payroll or sales.

If you are contacted by a your company's audit representative, the representative will explain the records you need to have available for the audit and will make an appointment to meet with you or a representative.  It is important that the company representative meeting with the auditor be thoroughly familiar with all company operations during the policy year; this will allow the audit to go smoothly.

On occasion, the company might mail a worksheet with instructions for you to complete and return in lieu of conducting a physical audit at your office; therefore, you may receive a request through the mail asking you to complete this “voluntary audit.”