The AuditRate Cost Reduction Audit is an in-depth review of current and expired insurance premiums. We analyze your rates, classifications, audits, premium adjustments, experience rating factors, and other factors which affect the premiums you pay. This service provides you with an added tool in the administration of your commercial insurance program.
Since 1966, our experience proves that premium calculation errors are quite common and cost insurance buyers a surprisingly large amount of money. Errors occur because your premiums are calculated according to complex rules and procedures that are beyond the expertise of most agents, insurance company personnel and insurance buyers. No one in the ordinary cycle of insurance renewals has the depth of knowledge to challenge the accuracy of the calculations. AuditRate assures you that your premiums have been calculated correctly.
When AuditRate uncovers a premium overcharge, we administer the process of correcting the error, causing the overcharge to be refunded to you. Since we "speak the language," we can guide your refund through the various bureaus and insurance company departments in an efficient manner until final resolution.
Our fee (50 % of savings) is strictly contingent upon your receiving a refund. We are paid only if you obtain a refund, and only after you receive the money. If you receive no refund, we collect no fee. A side benefit of our work is that it serves to reduce your future insurance costs for years to come.
No audit of your insurance program is complete without a coverage analysis. No matter how large a refund we may obtain for you, if your insurance does not perform as intended, you do not have an economical insurance program. AuditRate will point out errors and / or inefficiencies that may reduce your claim recovery. This service is performed at no charge.
We know that your time is valuable. Over the years we have streamlined our expert work process to involve as little of your time as possible. We can gather all the information needed for a cost reduction audit in two (2) one hour meetings at your office. We then perform a detailed analysis of this information at our office. Indeed, the short amount of time you spend with us will be a prudent investment for your company.
Regular policy reviews and renewals all too often miss the deeper-level errors that continue to go unnoticed for years. The bidding process puts pressure on agents to prepare quotes on an "apples-to-apples" basis, ignoring whether the original "apples" were really appropriate. No one in the ordinary cycle of insurance renewals—including agents, insurance company personnel and insurance buyers—has the depth of knowledge to challenge the accuracy of the calculations. And since your broker and carrier benefit from higher premiums, they are not incentivized to look for errors that will reduce premiums, not to mention advocate for refunds of past-year premium overpayments. AuditRate will determine whether your premium proposal was based on correct assumptions at the onset.
The rules governing risk quantification and premiums are complex and require both a keen eye to measure risk accurately, and a deep working knowledge of the rules to ensure they are applied correctly. Our AuditRate experts have the knowledge, skill and tenacity to dig far deeper and with a much more critical eye than even the most well-intentioned broker. We conduct a thorough review of every aspect of your business to gauge actual risk, and then check for technical, clerical, and mathematical errors in your policies that could be resulting in overstated premiums. We analyze your rates, classifications, audits, premium adjustments, experience rating calculations, and other factors which affect the premiums you pay.
AuditRate can examine both current and expired insurance policies for errors. The same concepts apply to both: our experts find and fix errors, and advocate with carriers for adjustments and refunds of overpayments. Of course, with expired policies we focus on full refunds of past overpayments whereas with current policies we also ensure ongoing premiums are corrected for the life of that policy and/or for as long as your risk states remain constant.
We started AuditRate in 1966 as a way to help companies find and fix costly errors in their workers’ comp and general liability policies. Over the past 40+ years, we have completed thousands of audits resulting in more than $30 million in refunded overpayments. Our largest single refund to date was for $1.8 million.
Most are surprised at how often we find errors. In fact, we find mistakes in 80% of the policies we review, and 40% of the time an overcharge is found and recovered.
The AuditRate Team is only limited to as far back as the availability of workers’ comp and/or general liability policies.
It’s entirely up to you, but it’s not necessary during the initial stages of your audit while we are analyzing your policy(ies). While we won’t share news of the audit with your broker, the carriers might do so, particularly during the repair/refund stages of the audit.
Most brokers simply assess risk and provide insurance coverage rather than investing in the additional expertise of audit process. Alera Group firms are the only brokerages to offer the specialty AuditRate process and know where to look for errors in the factors that determine premiums.
Over the years we have streamlined our up-front process to involve as little of your time as possible. We typically need the following documents/data to begin:
• At least two years of workers' comp and general liability policies
• Copies of the workers' compensation and general liability final audit reports including the auditor’s worksheets
• Payroll and/or sales source documents including 941, 940, 1099, profit/loss statement, general ledger report, etc which was provided to the auditor at time of audit
Yes, in order to begin an AuditRate review, you will sign a contingency-based agreement that gives us the authorization to review the back-end details of your policies and interact with your carriers on your behalf. The contract also binds AutiRate and Alper Services to confidentiality.
While many factors drive timelines, including complexity of operations, number of policies, insureds and employees, and the carriers themselves, we will have findings within two weeks of receiving full and complete information. The variable is the actual recovery time of the overcharge. Due to our years of experience, we know how to navigate the insurance carriers in order to obtain timely payment.
The process is three steps. Typically, it requires an initial meeting (a phone or video call
is common practice these days) with the AuditRate Team to review our process, and a second meeting to learn more about your business and obtain authorization to review your past payments, policies and policy calculations. On average, we will be prepared to schedule a third meeting with you two weeks later to review our findings and discuss next steps.
• Reconnaissance: gathering insight, reviewing all underpinnings
• Report: provide a summary of findings including estimates of refund/premium reductions
• Repair: work with insurance carriers to have errors rectified
• Recalculate: work with insurance carriers to have rates adjusted accordingly
• Refund: advocate on your behalf to secure full refunds of past overpayments
Yes. Our final meeting with you will review our findings and we will discuss next steps to recover and correct errors.
Our job is to tell you if your premiums were calculated in accordance with the rules and procedures set out to govern that work. If we find you were undercharged, we tell you. At this point, we leave it up to you to when you let your carrier(s) know of the errors to ensure you don’t experience surprise premium increases, and retroactive charges.
With each AuditRate review, we also conduct a thorough coverage analysis. No matter how large a refund we may obtain for you, if your insurance does not perform as intended, you do not have an economical insurance program. AuditRate will point out errors and/or inefficiencies in your policies where you may be left exposed to existing risks. This added-value service is performed at no charge with each AuditRate review.
We get paid only when we secure you a refund and/or a reduction in subsequent-year premiums. If we don’t get you a refund, or premium reduction, we don’t get paid and you owe us nothing.
No. The AuditRate contract specifies that if you chose to pursue carriers for repairs, recalculations and refunds, that work be conducted by AuditRate experts only. Since we put in the work to identify the mistakes and quantify the savings, and we get paid only when we secure these refunds and recalculations, it’s only fair that we carry on with this work.
There’s nothing in the AuditRate contract that requires you to use Alper Services as your broker after the review is complete.
No. The carriers understand that we are merely ensuring the rules governing risk assessments and insurance premiums are correctly applied.
We are experts in the complex rules governing policies and premiums. We “speak the language” and understand how to advocate on your behalf with carriers to have policy errors corrected, premiums recalculated and past overpayments refunded.
No. When premiums are reduced, that is because we correctly applied the rules for setting premiums in the first place. Therefore, when we correct your policy, your premiums will reduce to reflect the true state of your risk. Your coverages will not be affected.
The only risk is the high likelihood that your current workers’ comp or general liability policy has errors that are artificially increasing your premiums and overall operating expenses. Gone unnoticed, these errors result in year after year of premium overpayments. The good news is that when presented with clear documentation of these mistakes, carriers will refund these overpayments and lower future premiums with no changes to the underlying coverages. And, you continue to enjoy these lower premiums for the life of the policy provided your underlying risk states remain unchanged.
1. Does AuditRate save enough money to make it worth my time?
While we cannot guarantee you a refund, we save our Clients significant amounts of money in over 40% of the assignments we accept, thus recovering cumulatively over $23,000,000.
2. Why do we need AuditRate if our insurance is "quoted" frequently?
The bidding process puts pressure on agents to prepare quotes on an "apples-to-apples" basis, ignoring whether the original "apples" were really appropriate. AuditRate will determine whether your proposal was based on correct assumptions. We also check for technical, clerical, and mathematical errors - all of which are not affected by the bidding process.
3. What if errors are found that could actually cost us additional premium dollars?
Our job is to tell you if your premiums were calculated in accordance with the rules and procedures set out to govern that work. If we find you were undercharged ... we tell you ... In this way you are assured that no such problems with unanticipated premium increases will arise.