Premium Audit for Business Insurance

Only pay for the insurance you need with a premium audit.
At Grange, we understand that your insurance needs change over time. That's why we offer several options and discounts to keep your business covered at every stage.

Premium Audit

Whether you're a seasoned business owner or just opening the doors to your new business, you may not understand what a premium audit is or why you need to complete it. A premium audit is a requirement of all insurance companies. It helps us understand your current business needs and ensure you're paying for the right insurance coverage. Our audit is easy to complete, so you can focus on growing your business. Watch this short video to learn more about our audit for business insurance.

What is a premium audit for business insurance?

A premium audit for business insurance reviews your financial records and operations to determine the correct premium amount for your policy.

When will my insurance policy be audited?

Workers’ compensation policies are audited every year. General liability policies are always subject to audit but may be audited less frequently.

How do I complete the premium audit?

Our audit partner will provide you with a checklist and instructions in the audit request letter.

What types of records should be ready for the auditor?


  • Payroll reports
  • 941s
  • Quarterly state unemployment filings


  • Income statements, sales journal, etc.


  • Disbursement ledgers such as check register, general ledger, etc.
  • Certificates of Insurance

Am I required to complete my audit?

The premium audit is a requirement of all insurance companies and is part of your policy conditions. If you do not complete the review, it may result in an Audit Noncompliance Charge of two times the estimated annual premium of your policy.

How will I know my audit has been processed?

When your audit is processed, an audit statement is created. This will be mailed directly to you.

Documents you may receive for your premium audit

Premium Audit Statement

This document will show the adjusted premium on your policy as a result of the audit. This statement replaces the audited policy’s declaration page and lists the policy’s risk exposures by classification, rate and final premium. The premium audit statement impacts your billing account and invoicing, but is not an account invoice or “bill.”

Premium Audit Worksheet

This is the auditor’s report. It explains how the auditor determined the classifications and exposures listed on the Audit Statement described above.

Account Invoice

This invoice shows the status of your billing account. It will include premium changes from the audit, as well as other policy charges and payments for all of the policies listed on your account.

Premium audit vendors

We use a vendor for most audits. You may receive a request from one of the following organizations:

Learn more

Your independent agent is here to help. Call your agent today with questions and to learn more about premium audit. Whether you're a seasoned business owner or just opening the doors to your new business, you may not understand what a Premium Audit is or why you need to complete it.

 Contact an agent

*Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan* and Grange Property & Casualty Insurance Company*. *Not licensed in Pennsylvania