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Premium Audit Calculator

Estimate additional or return premium at audit by comparing estimated and actual payroll or sales against the deposit premium.

How the premium audit calculator works

Auditable policies such as workers comp and general liability are written on estimated exposure. After the term ends, the carrier audits the actual exposure and adjusts the premium. This calculator shows how much the insured will owe or get back.

Formula

Audited premium = max( Actual exposure ÷ Unit × Rate , Minimum premium ). Audit adjustment = Audited premium − Deposit premium.

How to use it

  1. Enter the estimated and actual (audited) exposure.
  2. Enter the rate and how it is quoted.
  3. Enter the deposit premium already paid and the minimum premium.

Worked example

Payroll estimated at $800,000 came in at $965,000. At $3.40 per $100, the audited premium is $32,810 — $5,610 more than the $27,200 deposit.

Frequently asked questions

How can a client avoid a big audit bill?

Report payroll increases mid-term so the carrier can endorse the estimate, or set the estimate realistically at renewal.

Is there a minimum at audit?

Yes — most policies keep the minimum premium even if actual exposure falls sharply.

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