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Premium Audits
Premium audits ensure that insurance premiums reflect an insured’s actual exposure. When records are complex, incomplete, or spread across multiple entities, questions often arise about how the premium basis was calculated. Clear financial analysis is essential to resolving these issues.
HIRE US
MDD has extensive experience performing and reviewing premium audits for insurers, insureds, and legal counsel.
Our forensic accountants regularly handle disputed audits, multi entity gross receipts analyses, and matters requiring expert testimony. We provide the independence and technical depth needed for audits that stand up to scrutiny.
We conduct independent premium audit analyses that verify reported figures, identify discrepancies, and confirm the correct premium basis. Our work includes detailed source document review, tracing receipts, reconciling financial activity, and validating exclusions to deliver clear, defensible findings.
Premium (Forensic) Audits – When to Consider
- Premium Audit Disputes in Litigation – Assisting attorneys conducting premium audit review for cases in litigation. We have CPAs with testifying experience as expert witnesses.
- Large Value Gross Receipts for Insureds with Multiple Entities – Conduct independent premium audits on each insured entity listed as a named insured across various states to accurately calculate the gross receipts applicable to the policy premium basis. Trace and accurately identify the source of receipts based on origin of project location, if necessary.
- Source Document Review – Our review is more than just the P&L. We request and obtain multiple source documents such as bank statements, general ledgers, profit and loss statements, tax returns and payroll reports to conduct our review.
- Investigate Discrepancies – We identify and review all differences between bank records and insured financial statements to compile accurate premium audit assessments. When discrepancies are found, we retrieve support documentation confirming the reasoning for differences and determine if values need to be included within the audit amount.
- Determining the Correct Audit Values – Our review encompasses identifying all potential omissions and errors on insured books and records to accurately reflect the correct premium audit basis. We also verify the accuracy of all premium exclusions such as OCIP / CCIP project receipts by retrieving all OCIP/CCIP certificates and reconciling all payments received for these projects.
- Services Done by Experts – CPAs conduct on-site and remote audits from the beginning to the end of the audit process. We present an easy-to-follow high value work product with detailed schedules on how audit findings were compiled by the CPA. Our audits are not generated by a software program, we conduct in-dept reconciliations through experienced CPAs with several layers of Quality Control in place.
- Document Processing / Technology – We keep all insured’s mind at ease by providing our sharesite to safely upload sensitive source documentation. We also have the capabilities to conduct virtual audits, screensharing, and conference calls through our Microsoft platform.
OUR TEAM
TEAM INFORMATION
Contact our team members using the details below. These contacts simply supplement
any MDD contacts you may already use to help find the resources you need.
Experience
Experience
Contact one of our experts below or filter experience based on region.
