Why is a product liability premium audit necessary?
When your product liability policy was issued, your premium was based on your projected sales. At the end of your policy period, an audit is performed to determine what your premium should be based on your companys actual sales. It stands to reason that companies with high sales and thus more products in the market have a higher risk for a product liability claim. Therefore, if your actual sales are higher than the projected sales, the insurance carrier is entitled to make an additional premium charge.
Related Questions
- Since the Data Call instructions for capturing exposure data and developing the audit file specifications do not require a premium to be reported, is the premium amount required for audit purposes?
- How does Vaughan Law Group handle the costs necessary for a successful result in a product liability claim?
- What is a product liability premium audit?
