Many businesses do not fully understand the insurance auditing process, which can result in hefty bills to pay further down the line. While some businesses feel the audit experience is a nightmare, the professionals at NorthEast Insurance Services in Englishtown, NJ, guide you in the process to save you time and money.
Whether your business is food manufacturing or producing plastic products, at regular intervals you will have to go through an insurance audit. Basically, this audit looks at information such as your company's payroll, receipts, units, and other accounting books. This information is only used for insurance rating purposes.
The mistake that a lot of businesses make is underestimating their earnings to keep their insurance premium down. Then the following year, when their books are audited, they receive a recalculated bill that reflects their actual revenue and is much higher than they expected.
If you see a significant increase in your business insurance rates, your agent is not doing a good job for you. The right agent educates their clients properly about the auditing process to ensure that they won't be handed huge bills later on.
Intentionally misrepresenting your earnings for a lower insurance premium is fraud - don't do it unless you don't mind going to jail.
For a trustworthy insurance agent in Monmouth County who will act as your advocate, turn to NorthEast Insurance Services. They work with a wide range of industries, including food manufacturing, franchises, metal fabricators, and manufacturers of technology products. Better understanding your business insurance will be easy with their experienced agents. Call (732) 972-1771 today or visit their website to learn more about their services.