insurance underwriter examining documents

Premium audit

Premium audit explained

Business operations change. Premium audit responds.

The annual premium audit process at UFG helps ensure premiums that were estimated at the beginning of workers compensation and general liability policies reflect our insured’s actual exposures at the end. This process allows premium and classification adjustments to be made, but it also offers an important opportunity for policyholders and agents to spot possible gaps in coverage that might be a good idea to bridge.

We know audits, in general, can sometimes be stressful. That’s why it’s important to us that our process is as simple as possible for both policyholders and agents alike. We hope this page serves as a nifty resource to help you know what to expect when it comes to UFG premium audits.

Why do business insurance premiums need to be audited

When a commercial insurance policy is issued, a company’s premium is estimated at that time based on financial factors like expected payroll and/or sales for the year. 

But, as business owners know all too well, things don’t always go as planned. 

All the changes that occur during the year mean the estimates used at the beginning of a policy period may be different than the actual outcome at the end. 

That’s where the premium audit process comes in. 

Premium audit aims to classify employees correctly and reconcile estimates provided at the beginning of a policy period with actual exposures at the end of a policy period.

How the premium audit process typically works at UFG

In a nutshell, our audit team works with policyholders at the end of a policy period to gather the facts and figures needed to reconcile.

The process may be done through

  • secure-icon   A secure website
  • mail-icon-70x70   Mail
  • phone-icon   Phone
  •   location-icon    An on-site visit from an auditor

— we’ll let the insured know. 

Underwriter conducting audit site visit

On average, the auditor’s review takes about 15 days after the policyholder has shared all the info. 

The snapshot of premium audit processes on this page is only a high-level overview. Our audit team will provide policyholders with deep-dive details for specific information. Contact the team at or 319-247-6444, or visit our premium audit FAQ page