Insurance premium audit for transportation and freight
Insurance premiums in transportation are built on information you report: who drives, what you drive, how far, and what you earn. When those details change during the year, premiums may be adjusted afterward.
Fairview Audit connects you with a partner firm that can check whether your premium was calculated correctly from the facts of your operation. Fairview does not perform the review itself.
This page covers Insurance premium audit for Transportation and freight businesses.
Why premiums need attention in transportation
A transportation business may carry several kinds of coverage at once. Workers compensation covers employees. Commercial auto or motor carrier liability covers vehicles. Cargo coverage protects freight in your care. General liability covers terminals and yards. Each uses a different basis for the premium, such as payroll, vehicle counts, mileage or revenue.
Fleets change constantly. Trucks are added, sold or parked. Drivers join and leave. A policy based on an estimate at the start of the year may not match what actually happened, and the final audit by the insurer settles the difference. Errors in either direction are possible.
What a review typically examines
A partner firm reviews the policy, the rating basis and the final audit. For this industry, common questions include:
- Whether the vehicle schedule matches the units you actually operated, including units sold, out of service or added mid-term.
- How drivers were classified for workers compensation, and whether dispatch, mechanics and office staff were placed in the right classes. [VERIFY: how classification rules differ by state and by insurer]
- How owner-operators and subcontracted carriers were treated. Whether their payments were counted in the premium base can depend on whether they carried their own coverage and held certificates of insurance.
- Whether payroll included amounts that are usually treated differently, such as certain reimbursements.
- Whether mileage or revenue figures given to the insurer match your own records.
- Whether any credit for safety programs or experience was applied as the policy promised.
- Whether cargo and liability policies were rated on figures that reflect your actual operations.
Certificates of insurance
If you use owner-operators or other carriers, certificates of insurance from those parties matter. With some insurers, a missing or expired certificate can mean their payments are added to your premium base. Keeping certificates current is a practical step you can take before any review.
Warning: Insurance rules vary by state, line of coverage and insurer. This page is general information, not insurance or legal advice.
What to have ready
- Policies, endorsements and declarations pages for each line of coverage.
- The insurer's premium audit worksheets and final audit statements.
- Vehicle and driver lists with dates of addition and removal.
- Payroll records by job role, and payments to subcontractors and owner-operators.
- Certificates of insurance from subcontracted carriers.
- Mileage and revenue records you reported to the insurer.
- Correspondence with your broker or insurer about audit disputes.
Timing
The best time to raise a premium question is when the insurer's final audit statement arrives. Insurers set their own procedures for disputing an audit, and they usually expect written support. Check your statement for instructions and tell the partner firm about them at the first conversation.
How matching works
Choose the request path that fits: larger business, smaller business or not sure. There is no fixed size cut-off. Fairview matches each request by hand. A matched partner firm contacts you, or Fairview matches you manually. Any engagement and fees are between you and the firm. [CONFIRM: which partner firms cover insurance premium audit]
An independent partner firm that specializes in insurance premium audit handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Does a review replace my insurance broker?
No. A broker places and advises on coverage. A review checks whether premiums were calculated from correct facts.
Is the insurer's audit the same thing?
No. The insurer audits you to set the final premium. A partner firm reviews that result on your behalf.
What about other transportation costs?
Carrier billing is covered under freight and parcel for transportation and freight.
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.