Commercial Policy Audits

Our annual policy review can save you time and money.


Commercial policy audits compare estimated dollars with actual dollars.


Each year, Indiana Farm Bureau Insurance determines annual premiums for commercial policies by evaluating businesses on an individual basis. That way, your company pays for the appropriate amount of coverage for the size and nature of your business.


Premiums for commercial policies are determined by payroll dollars. At the beginning of the policy period, you and your Indiana Farm Bureau Insurance agent estimate the total payroll dollars for the next 12 months. At the end of the policy period, Indiana Farm Bureau Insurance conducts a review, called an audit, to determine how close your actual payroll dollars were to the estimated amount. (Premiums also are developed for uninsured subcontractor costs. Therefore, make sure you have a Certificate of Insurance from subcontractors.)


Every insurance company performs this process, so you pay premiums based upon the actual amount of payroll used. This means that each company only pays its fair share of the total commercial insurance costs. If payrolls were underestimated, your company will need to pay the difference. Likewise, if payrolls were overestimated, Indiana Farm Bureau Insurance owes you a refund. The process is similar to that of paying taxes.


There are three types of audits:

  • 1) Paper Audit
  • 2) Phone Audit
  • 3) Physical Site Audit


The type of audit done on your company depends on the size of your company and the complexity of your account. As a general “rule of thumb,” the greater the size of the company and the more complex the account, the higher the level of audit that is required.


When Indiana Farm Bureau Insurance contacts you about your annual audit, it is to your advantage to respond quickly. If you owe, you can close your books quicker and not carry over an expense. If Indiana Farm Bureau Insurance owes you, you will get your refund quicker. Either way, it’s a good choice for your company to respond to them request in a timely manner.



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