Definition: A premium audit is the carrier’s year-end review of actual payroll or revenue to calculate the final premium for policies rated on those figures.

Why it matters for salons and spas

Workers’ comp and some liability policies are audited. Underestimating payroll can lead to a surprise bill; overestimating can earn a refund.

Example

After adding two stylists mid-year, a salon owes additional comp premium at audit.

Related terms

Workers’ Compensation · Class Code

Learn more: workers’ comp · full glossary · salon insurance questions.

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