Welcome to the Commercial Audits workflow. This is a step-by-step workflow to complete the task of commercial audits on the commercial business lines policies that are auditable depending on the carrier's preferences.


This workflow is for agencies with full management system access as we will use the Management System and Client Center products. If you aren't sure if you have all these products, check out our Glossary of Icons and their Meanings - Left Navigation Bar section for product icons.


Check out our video if you'd rather watch and follow along!
EZLynx Term: Applicant is our term for customer, insured, or account and are used interchangeably.

Not all policies are Auditable. Insurance Carriers use various information gathered to develop the premium for the year. The information needed varies based on the type of business for the insured. (Payroll, sales, costs, units, (and more). 


Audits are typically conducted by the Carrier at the end of the policy period for small commercial business. The Audit process will reveal the exact figures for the previous year so that premium adjustments can be made. If the insured paid too much, they are due a return premium. If the insured underestimated the information used to develop the premium, additional premium is due to the Carrier. These audits also help adjust the current term for accurate premium collection. 


Carriers who assign a Company Auditor to work with the Insured directly. (Phone or on-site interview)

The insurance company Auditor and the Insured will go through the details together to determine the proper Audit Figures. Based on the outcome (Additional, Return, or Even) the billing is adjusted and due. 



Carriers who send a “questionnaire” type of Audit to the Insured.

The Insured will fill out the Audit paperwork and send back with the appropriate documentation proof to the Carrier. Based on the outcome (Additional, Return, or Even) the billing is adjusted and due.



Carriers who allow mid-term Audits (Monthly, Quarterly, or Semi-annual) 

This option is a "pay as you go" option for the Insured, Agent, and Carrier. 

  1. Insured will submit mid-term Audit details based on the actual figures for the Audit period. The Audit period may be the previous quarter, previous month, or previous six months determined by the Carrier.

  2. The Insured will send a check by mail with documentation paperwork, or EFT / Credit Card if done online, along with uploading documentation. (Some Carriers also tap into the Insured's QuickBooks for an easier experience as well if payroll is used). 



Year End Audit Process 

Audit premiums (Additional, Return, or Even) should be entered in EZLynx for the previous policy term. 

  1. Find the Policy for the Audit and Actions > Audit to see the Audit Policy screen open.
    Not sure how? Click here!
    1. From the Overview Policies section, or the Policies tab, click on the Policy Actions (three vertical dots). 
    2. Hover over Service.
    3. Choose Audit. This will take you to the Audit Policy page.




  2. Enter the Audit Date. 
    1. Important Note: Typically, the Audit Date will be the Effective Date of the expired policy. If not done in this manner, the Annual and Full-Term premiums will not be calculated properly by the system. This will also keep the transaction with the correct policy term in the History Tab. 

  3. Enter the Audit Premium (Additional, Return, or Even).

  4. If audit details like payroll, sales, etc. are included for the expired term for the Audit, choose Save & Continue Edit to update the expired policy term. 
    1. NOTE: If the Carrier has sent an Endorsement for the existing in-force policy term, process this as a Policy Change initiated by the Carrier to update the current in-force policy term premium and coverages. Not all Carriers will send these. 

  5. Create a Note to document the Audit information. Add the proper checklist and label. If needed, create a task reminder for changes that may be necessary for the current policy term, or any follow-up items indicated by the Carrier. 
    Not sure how? Click here!
    1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
    2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
    3. If this is a new discussion, input the Discussion Title. If this note needs to be added to an already started discussion, search for the previous discussion title. 
    4. Input your notes in the "Type your note here..." box. 
    5. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
    6. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
    7. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
    8. Select the Add Labels (price tag) icon to add a label to the note for organization.
    9. Select Save to finish adding the note to the customer's account.


We hope this workflow article was helpful in learning how to handle Commercial Audits. Please let us know if this article was helpful by answering the question below. Check out our related articles on the right-side of the page to learn more about EZLynx!