The agent's role in Audits

Jul 31, 2019

  1. JWP
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    JWP New Member

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    As I've dabbled in commercial business, one of the biggest headaches has been getting our insureds to turn in audits in a timely manner. At our agency, the agents simply serve as a go-between for the insured and the audit dept. We remind insureds the audit is due and overdue, then we end up faxing or uploading documents which the insured sends us. An audit is fairly simple but to the insured, it's like pulling teeth. I feel this from both new businesses and established businesses, and all different classes of business.

    Do any agents just ask the insured for payroll and 941's and then do the audit on behalf of the insured?
     
    JWP, Jul 31, 2019
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  2. AZDave
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    AZDave Guru

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    I am heavy on contractor GL and audits continue to be my biggest headache. On renewal review's I remind them about the upcoming audit, send out the second and final requests as i get them and do everything to make sure insured gets his audit completed - except filling in the information. That is not for us.

    Just today I'm working one of my accounts that got hit with a 150% surcharge for non compliance with audit. And the account pays monthly via eft - so that added premium created a banking problem. Ugh! But insured understands that this is his problem. If i had done nothing up till now, he would probably be getting quotes elsewhere.

    Good Selling!
    Dave
     
    AZDave, Jul 31, 2019
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  3. fed up
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    fed up Guru

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    As an agent it is my job to stress to the customer that an audit is necessary and follow up to see that it has been completed. When the customer doesn't have time for the process, it is my job to inform them of the rate increase.
     
    fed up, Jul 31, 2019
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  4. KRobby
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    KRobby Guru

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    I'm sure most auditors would be ok with meeting with you if you're confident you can have all the necessary documents. They routinely meet with CPAs of insureds to do the same thing.
     
    KRobby, Jul 31, 2019
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  5. Markthebroker
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    Markthebroker Guru

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    I have my csr's headache with that so I can focus on bringing in accounts. Ultimately the insured needs to fill them out, or their premium goes up. If they complain, I invite them to work with another agent.
     
  6. JWP
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    JWP New Member

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    Thanks for the replies everyone. It's good to hear from another perspective.
     
    JWP, Aug 7, 2019
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