When you purchase business insurance in Albany, New York, you may worry about when a commercial insurance provider will audit your protection plan. The insurer may order an audit in specific situations, but it does not usually occur at the beginning of a policy or when you have a long period of time remaining before your policy expires.
Cancelling a Policy
If you cancel your commercial insurance policy, then the insurer may order an audit on your policy. The reason is primarily related to verification. It verifies that you cancelled your insurance and that it was not cancelled by a third party. By auditing your policy, the insurer is able to ensure that identity theft did not occur and that you made the decision because you decided to work with a different company or as a result of losses in your business.
End of the Policy
In many cases, insurers will audit your policy when the current contract has expired. Even if you decide to renew your contract and continue working with the same insurer, auditing occurs to ensure that you are still eligible for continued coverage and that the policy is appropriate for your business.
The amount of time before an audit occurs can vary between companies, but in many cases it will take roughly 15 days before the results are available. If you decide to continue working with the same company, then you may be allowed to renew your contract before it expires.
Every company has a different policy and method of handling audits. Although many insurers will audit at specific times, the exact time period and the specific details of a policy may vary. Talk to an independent agent today to learn more about the auditing process.