Premium Audit Adjustment Calculator

Insurance audits true-up premium to actual exposures. This calculator projects the adjustment.

Estimated base $

Actual base $

Rate per $100

Experience mod

Audit adjustment

$7,770

True premium

$62,160

Adjustment %

14.29%

How the math works

Adjustment = (actual − estimated) ÷ 100 × rate × modifier.

Reserve 5-10% of annual premium for audit variance. Small businesses often face $10-30k audit bills; large operations $100k+. Budget line-item, not surprise.

How to Use

Enter estimated payroll/receipts.
Enter actual payroll/receipts.
Enter rate per $100.
Enter experience modifier.
Read adjustment $.

Frequently Asked Questions

What's audited?

Workers comp: payroll. General liability: receipts/payroll. Auto: unit count. Builder's risk: project value. Each carrier audits its driver at year-end.

Audit surprise?

Businesses routinely under-estimate, causing 10-30% audit catch-up bills. Over-estimating creates cash-flow inefficiency. Rolling 60-day actuals at year-end give most accurate estimates.

Dispute process?

Provide actual payroll/sales reports. Classify workers carefully (officers vs laborers). Excluded subcontractors need certificates of insurance. Document and dispute within 30 days of audit.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.