Contact us if you are looking for commercial insurance premium audits or any form of commercial insurance review. The team at DeshCap consists of insurance experts who are independent of any insurance broker or lobbyist.
What is a Commercial Insurance Audit
A comprehensive commercial insurance audit is an evaluation of 5 factors:
- Compliance - how compliance is the commercial insurance with contractual obligations
- Protection - how effective is the commercial insurance in achieving protection or operational resilience
- Cost - how cost effective is the commercial insurance procured by the business
- Financing - how effective is the commercial insurance at enhancing terms of financing with lenders
- Valuations - how effective is the commercial insurance at enhancing valuations with investors
What are Insurance Premium Audits
Insurance premium audits are part of a commercial insurance audit and can also be done separately. Insurance premium audits should look at how cost effective the commercial insurance is, which includes premiums paid to insurers as well commissions paid to brokers. It is important to understand what is driving the cost of business insurance when doing insurance premium audits.
Insurance premium audits should be performed by insurance experts who are independent of any insurance broker, company, or lobbyist. It is also important to note that businesses seeking insurance premium audits should understand the relationship between insurance premiums and coverage afforded. For instance, there could be exaggerated premium on a specific commercial insurance policy regardless of the extra coverage provided, or there could be meaningful coverage provided in return for premium.
What is an Insurance Policy Audit
An insurance policy audit is part of a commercial insurance audit and can also be performed separately. It entails analyzing the language of any commercial insurance policy to measure its effectiveness for the business or the investor. Take a look at our AI-based insurance audit. Very few individuals, including Management and insurance brokers, read the fine print of their insurance policies. That is why an insurance policy audit is highly recommended to be performed by experts independent of insurance brokers at least once annually.
Performing a Commercial Insurance Review
From a technical standpoint, a commercial insurance review should be performed as part of a company's operational risk management framework. While a commercial insurance review can be done on a stand-alone basis, it is important for the business to outline and remember the outcomes it expects from commercial insurance. For instance, If the main outcome expected by Management is operational protection, then the way a commercial insurance review is performed would be different than that if the outcome expected was compliance.