What Is a General Liability Audit?

A general liability audit is an essential part in keeping your business protected against potential lawsuits. While you may think that the coverage you have is enough, this is often not the case. Many businesses have gaps or holes in their coverage that could leave them vulnerable to thousands of dollars in losses. That’s where a general liability audit comes in.

What is it?

A general liability audit occurs when an insurance agency examines a client’s current policy to determine if it effectively covers their exposure to liability. It is typically done at the end of each policy term, and it also verifies if the client has paid their appropriate premium.

What is the purpose of a general liability audit?

The business environment is ever-changing. From new government regulations to personnel changes, there are a lot of changes that a business will have to deal with in just one year. One way these changes can impact a business is that they can open up a company to liability lawsuits. A general liability audit, however, can determine how certain changes impact a company’s policy and if it leaves them vulnerable to a lawsuit.

The process

An insurance agency will likely have an auditor to assess a company’s exposure to liability. This auditor will first analyze a company’s payroll, and then move on to company records to see if they have the proper employee classifications. To be prepared for this process, a company to be prepared should have all of these documents ready for the auditor ahead of time.

As a member of the firearms industry, it’s essential for you to have a great insurance policy. Firearms Insurance Agent can help you track down a policy that meets all your needs. Call us at 855-486-2667 to talk with someone from our team today.

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