Premium Audit Consulting

Premium Audit Consulting specializes in consulting services for insureds and insurers who have disputes over the premium side of their insurance policies. We have been in the industry for over three decades and have consulted and acted as an expert witness.


Please note that many problems may be resolved  by correspondence thereby mitigating overall costs.


Services for Policyholders


Insurance companies operate departments that produce invoices indicating premium due. These units are known as "Premium Audit Departments". We have over 33 years experience working for insurers and organizations like yours and can help you. We will review every aspect of your situation, perform re-audits as needed and act as expert witnesses if required. We will inform you of our best opinion and all of the available options as quickly as possible to ameliorate expenses. If the Insurer's position is viable, we will inform you of all available appeal procedures that you may make on your own and assist you in drafting same. We will gladly cooperate with your attorney should you wish to pursue litigation. The work that we will have completed, at this stage, will be at a lower rate and will not have to be re-done by an attorney firm thus producing some overall savings. We will accept retainers for long-term projects or by the specific assignment. We do not charge according to the premium recovered or saved. Please note that we are not attorneys.

Worker's Compensation Insurance 

Worker's Compensation insurance coverage is the most problematic in commercial lines. It is a "No fault" type of coverage and is regulated by the individual states, some of whom, contract with various rating organizations to promulgate rules and rates. Manuals are authorized and published by the various rating organizations and contain many rules and regulations subject to interpretation. These rules regulate the underwriting and auditing of these policies. The first thing most people do is to apply the rules literally. That could be done when this line of insurance was in its' infancy, around 1915. Since then, many administrative decisions have altered what seems like a common-sense approach into something quite punctilious and political. If a person can refer to past decisions, an insured may have a fighting chance. We do not just cite rules, but also explain the reasons behind them.

The function of Premium Audit Departments are often misunderstood by carriers. This may expose carriers to bad faith lawsuits and similar regulatory penalties as well as disputes. Concomitant with disputes is the  chance that your credit will reflect a bad debt before the dispute is adjudicated which is why time is of the essence.


We are also available to assist in this area of Insurance.


Services for Insurers


Disputed audits require the use of resources that may be best spent in billing policies and getting premium on the books.

Disputes may eventually get the Rating Organization involved as well as  in-house and vendor collection attorneys. There is no guarantee that premium to cover these costs will be realized. Of course, the loss of  goodwill from the insured and agent are intangible.

It makes sense to verify the validity of a dispute before committing resources and we can do this in a quick and efficient manner,

 Of course, the best option is to avoid disputes. We can train your audit department in the technical skills necessary to produce a timely and efficient audit. We will review the processes you use to produce an invoice and recommend ways to improve efficiency.

Our experience with test audit programs has been very good and we have met the maximum standards on a consistent basis. We can help carriers who are meeting the minimum standards. This includes presentations to the various rating authorities and advice on how to avoid test audit errors. Many times, a small change in a carrier procedure will bring the numbers down inexpensively.

We can be of help in any area of premium audit, as we understand the process and the logic behind it. Knowledge of how the Underwriting and Premium Accounting Departments is very necessary.

We worked for a carrier for 28 years which gives us a unique insight.

Send us an email and let's collaborate to remedy the situation.

        Thank You

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Ron Crabtree,
Nov 3, 2018, 2:40 PM